Bounce back loans-- sensible limits?

Stuart2021

Hello all
I am looking for a bit of advice/ guidance on applying for a top up loan. I realise this is of course a business question on a predominantly consumer forum, but since MSE has allowed similar questions previously...

My company successfully applied for a BBL last year, taking around 50% of the maximum eligible to borrow. Like so many, we used much of BBL1 in order to survive and now looking at a BBL top up in order to really push for a strong return to market. Now my question is if anyone has an opinion on whether to apply for the full remaining eligible balance or cap it at a lower figure; since the interest rate is so low, that's not a material factor- it's just a bit of security in case lockdown is delayed and/ or we spot an opportunity in the market. However, I am concerned that we might appear 'greedy' if we apply for the maximum remaining as there are many companies maximising their debt with no intent of repayment. To me it seems a no-brainer if the interest is low to borrow the max, but it's that perception. The company is solvent, still trading- albeit reduced- and has a credible bounce back business plan.

Does anyone have any opinions, please? It really is about perception from the bank. I don't want to look like I'm maximising debt for no good reason.
Thanks in advance.

Thrugelmir

The payback to the Treasury for the subsidised rate of interest is that you create economic activity and contribute tax revenues to the coffers. Every business that fails will simply call on the taxpayer to fund redundancy payments and unpaid wages etc. Majority of business owners are hard working and honest individuals. Fraud may provide a short term benefit to some. In the arena of business, events have a habit of catching up with those that attempt to take advantage. 

Stuart2021

Hello Thrugelmir.
Many thanks for taking the time to reply, much appreciated. I'm not really sure what or who you are replying to as your answer has absolutely nothing to do with my question, unless you're implying I am committing fraud, which I most certainly am not. But thanks anyway.
For clarity, I have been told- rightly or wrongly- that banks are taking a dim view of anyone who applies for the maximum limit in case they are either reckless, insolvent of fraudsters. To be clear, I am none of those.

Thanks again anyway.

Jeremy535897

It seems to me that the only sensible decision that a business owner could take is to avail himself of the maximum facility, unless it is obviously not going to be needed. The owner then has a year to decide how much is really needed before there is any cost to the business. To do otherwise is illogical. It is a completely separate issue from whether there is an intention to default, as that is unacceptable whether the maximum loan is taken or any lesser amount.

HobgoblinBT

What does your cash flow forecast tell you the business needs?