Bounce Back Loans and CVL’s
Bounce Back Loans (BBLs) continue to feature prominently in insolvency cases. Directors are often unsure what will be reviewed and where risk may arise.
At Keywood Group, we help directors understand expectations and present a clear, evidenced position.
What Liquidators Will Review
- Use of funds
Were proceeds applied for legitimate business purposes (working capital, supplier payments, overheads)? - Flow of funds
Any transfers to connected parties or personal accounts will be examined. - Record-keeping
Clear audit trails (bank statements, invoices) support the position taken.
Where Issues Can Arise
- Mixing personal and company expenditure
- Lack of documentation supporting transactions
- Misunderstanding permitted uses at the time funds were drawn
Good Practice for Directors
- Compile a simple narrative of how funds were used
- Collate supporting evidence (invoices, statements)
- Address any anomalies proactively with your adviser
Final Thought
Transparency is key. Where directors can clearly evidence appropriate use, BBLs are typically straightforward within the CVL process.
Keywood Group
Licensed Insolvency Practice
📞 Contact us for confidential advice today on 0121 201 0399 or by emailing us at info@keywoodgroup.co.uk
