HSBC business loan

nattieb

Well after being refused a loan with my bank Lloyds TSB (who I have banked with years) I decided to go another bank this time HSBC.
We met with a lovely lady who listened to our business plan pitch and was very happy with it. We went on to opening an account and applying for a loan, which she said if there was a problem with the credit status we wouldn't get through that. However, the bank has other ideas. They agreed to the loan but to the amount of £5500 when we are applying for £25k. For anymore the business manager she that it had to be referred.

This brings me onto my question. What does that mean (referred)? The business manager agreed with our figures of the business plan and can see that we can afford the loan on my wages even if the business doesn't succeed. So why has it been referred? Is this a bad thing? Does it mean it's going to be rejected?

Anyway I find out in a couple days and I will let you all know how it turned out I just wanted to share this and maybe be enlightened to why this has happened as I have a very good credit rating.

Thanks Nattie

Superheavy

Hi Nattie,

It's probably been on to a central team where they will take a closer look at the figures, and run a separate set of eyes over the proposal.

It isn't necessarily something to be concerned about, as if the business plan, the figures and the fall back plan are solid, then it should be approved.

Good luck.

nattieb

Superheavy wrote: »

Hi Nattie,

It's probably been on to a central team where they will take a closer look at the figures, and run a separate set of eyes over the proposal.

It isn't necessarily something to be concerned about, as if the business plan, the figures and the fall back plan are solid, then it should be approved.

Good luck.

Well I hope so I really want this

Thanks for the positive reply.

Nattie

jonesMUFCforever

Can I just get something straight - you applied for a loan for £25k but they say that you can only have £5500 - is that correct?
If so that blows your business plan out of the water - either you didn't need the rest or you won't have enough capital to do whatever you were hoping for? Which is it?

nattieb

jonesMUFCforever wrote: »

Can I just get something straight - you applied for a loan for £25k but they say that you can only have £5500 - is that correct?
If so that blows your business plan out of the water - either you didn't need the rest or you won't have enough capital to do whatever you were hoping for? Which is it?

No the business plan was sound all the figures made sense to the business accounts manager she wouldn't have gone as far as opening an account if they didn't. I have spent £7500 and have a further £15k bringing my total investment to £22,500. I am staying in employment and my partner is going to be running the business so I don't think the money isn't the problem.

but thank your for the reply

jonesMUFCforever

Thank you for your reply.

Can I just make one comment?
If the bank manager thought your business plan was sound they would have offered you the whole amount subject to their normal business checks etc.

You didn't mention that you have spent £7500 and had another £15k on standby in your first post.

Superheavy

I suspect the system will probably offer a specific amount based on credit scoring and the basic figures entered into the system. Any requests over the recommended figures will then get referred on to another team to examine the cash flow forecasts, business plans etc, who will then agree or decline the request.

nattieb

jonesMUFCforever wrote: »

Thank you for your reply.

Can I just make one comment?
If the bank manager thought your business plan was sound they would have offered you the whole amount subject to their normal business checks etc.

You didn't mention that you have spent £7500 and had another £15k on standby in your first post.

That's fine no worries it was all posted in another posting.
This isn't something that me and my partner have just woke up and thought it would be nice to be self employed lol
This has been in the pipe line for about 8 months now. He has invested a lot of time and money, and is more than willing to invest a lot more too.

However, I can see you point especially as this was and is my view on the matter too. Having said that with the economic mess the banks are in I can also see their reasoning into safe guarding who they lend to.
The loan was turned done from own bank Lloyds TSB because we have a loan and a credit card with them. But again with my wages we are coving all the payments and have never defaulted so I was very shocked when they said no. They didn't do anything like HSBC they just said no!

So as it stand at this present time I don't think the loan will be accepted but I am hoping and praying that it will.

Thanks again Nattie

nattieb

Superheavy wrote: »

I suspect the system will probably offer a specific amount based on credit scoring and the basic figures entered into the system. Any requests over the recommended figures will then get referred on to another team to examine the cash flow forecasts, business plans etc, who will then agree or decline the request.

Yeah I guess so let hope he or she likes my business plan and the forecast like the branch account manager

nattieb

After all this waiting I now have to see a business manager in a higher position than the business manager in the branch ��
I wouldn't mind but it's more waiting and time which I can do without waiting, if you know what I mean. This particular business manager over sees all the lending in Norfolk and is based in Norwich. He's travelling to come and see me to discuss the business plan and ideas etc. what I find hard to believe is that he is taking time out of what I can only imagine is a very busy schedule to discuss a business plan which he has had for the last two weeks! Surely he would have looked through the plan and decided if it is a viable plan??
Well I have my appointment I guess I can only wait and see what the outcomes is but I can't help but feel that I am being messed around! ����

meer53

The business manager obviously has some questions for you. If i were you i'd make sure your partner is there too as it sounds as though he's going to be involved in the business. It's no good just one of you being there if you're both going to be running the business.