The Company has an outstanding Bounce Back Loan facility with Lloyds Bank, which was originally drawn down in November 2020. The principal amount of the loan was £15,000, in March 2021 a further £8,000 capital was taken on top of this, giving a total loan amount of £23,000 drawn.
A payment of £10,000 was made prior to the end of the 12 month interest free period - leaving £13,000 loan outstanding.
Interest is being charged at 2.5% pa and payments started in December 2021.
An extra £250 per month has been being paid off capital amount of loan from April 2022.
As of 31 December 2023, the outstanding balance of the loan is £3,517. Given the increased repayments this loan is classified as a current liability, reflecting its expected repayment within the next 12 months.
The repayment of this loan will reduce the Company's current liabilities by £3,517 over the next 12 months. This will have a direct impact on the Company's cash flow, requiring careful liquidity management to ensure that operational needs are met while servicing the debt.