I borrowed a £40k BBL and since then, I've taken about £40k out of my business in drawings (sole practitioner).
The loan was taken when the bank balance was around £1000, cash flow hit hard.
All debts, taxes etc... are paid up to date, including deferred March VAT bill of £10k.
£7k of the BBL was used immediately to clear an existing loan with the same bank to consolidate the debt and reduce interest.
There is £22k still in the business account. I have a £20k overdraft facility that could've otherwise been used but would've incurred interest.
I've been reading horror stories about misuse of bbl's and I'm worried. Have I done something wrong by drawing £40k? I should point out that I received £13k of SEISS which forms part of the money drawn. The remaining money was drawn in chunks of about £2k after I managed to collect in about £25k of old debts when other people got their grants/loans.
Technically I could repay the bbl but it would empty the bank balance and put me to the end of my agreed £20k overdraft and incur interest. So it doesn't make sense to do that.
Sorry. Just a worrier.