Bounceback loans were launched during the Coronavirus outbreak at 9am on 4th May 2020. This was a government lending scheme whereby companies could borrow up to 25% of their turnover (subject to a £50k cap) which would be 100% guaranteed by the government. In addition there would be no interest or capital to pay in the first year, and in subsequent years the interest would be only 2.5%. To say this was a good deal would be an understatement.
Banks themselves were to administer the scheme and therefore loan applications were to be made through the banks’ websites. And that’s when an interesting thing happened…
The deadline for the scheme was 4th November 2020 – some 6 months away. But at 9am on launch day banks were overrun with applications, crashing IT systems and causing widespread frustration. Applicants took to social media to complain about what a fiasco it was.
In fact all anybody had to do was wait 12 hours and apply at 9pm on the same day. Or better yet wait a few more days to let the panic calm down and allow any early bugs be ironed out.
Many times in business it pays to wait a while rather than jump in
- Microsoft brings out a new software release – It is well known that the initial release will have bugs and that version 2 or 3 will be a lot more stable
- The government brings out some new tax legislation. Instead of panicking and rearranging your affairs on that first day wait until the accounting and tax planning profession have taken some time to consider strategies to mitigate the tax burden
- A supplier says they are raising their prices at the end of the month. It’s easy to pick up the phone and start arguing but if you wait a day or two they may have decided to reverse their decision due to all the complaints they will get. It also gives you time to quietly research alternatives
In our fast-paced world it’s easy to think that speed is often of the essence – when actually most of the time waiting a while is the optimal strategy.