Bounce Back Loan

Grumpy_chap

Hermann said:

Rangytangy said:

Do these bounce back loans have to be declared as income for universal credit purposes.

Hopefully not, but suspect it's best to enter some details on your journal that you've received the loan and it is a business asset.

If the loan is entered in a journal as a business asset, there would also have to be an entry for the business liability for repayment, so it would be a net zero when the journal is taken as a whole.

Jeremy535897

Hermann said:

Hopefully lenders will get to grips with the details soon but there is clearly no need for a business account to be eligible....

From...  https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-schemes/bounce-back-loans/faqs-for-small-businesses/

Is the loan available under the Bounce Back Loan Scheme a personal loan or a business loan?

A loan under the Scheme is a business loan. The terms of the loan are covered by the Scheme.

A lender may consider paying the funds into a personal current account if no business bank account is held, if the business has been satisfactorily evidenced.

"A lender may consider..." For years banks have been allowing individuals to use personal accounts for small businesses. From what I've seen so far, I think the banks will say they expect customers who currently have only personal bank accounts to open new business bank accounts, for which they can charge fees.

Bolt1234

What a mess this is and TIDE seem to be very popular with SMEs so what is one to do? I believe that TIDE is applying to be a lender but their application is ‘stuck’!  Any suggestions as to what to do next? Cancel the TIDE account and immediately open one with say Lloyd’s (who we bank with personally and have for many many years)?  Would Lloyd’s and others even allow this?

Hermann

Bolt1234 said:

What a mess this is and TIDE seem to be very popular with SMEs so what is one to do? I believe that TIDE is applying to be a lender but their application is ‘stuck’!  Any suggestions as to what to do next? Cancel the TIDE account and immediately open one with say Lloyd’s (who we bank with personally and have for many many years)?  Would Lloyd’s and others even allow this?

Wait a for a few days, the banks are not fully prepared for this and will take some time so be fully ready to administer these loans, things are likely to develop over the next week or so, and further lenders added.

Bolt1234

Thanks Herman.  I hope so.  Tide are clearly itching to go with this but does anyone know if TIDE aren’t accredited then should we close the business account with TIDE and open one with Lloyd’s?  How long does that take and is it even worth doing?  

I wont do anything rash though...

recruiteronline

Bolt1234 said:

Thanks Herman.  I hope so.  Tide are clearly itching to go with this but does anyone know if TIDE aren’t accredited then should we close the business account with TIDE and open one with Lloyd’s?  How long does that take and is it even worth doing?  

I wont do anything rash though...

I have been considering the same thing, I have read that they are waiting the outcome of applying to be an approved provider through the British Business Bank lets hope they make this approval soon. I am sure there are many Tide customers in the same position.

freshfunk

We've just done this for both our businesses, mine is a limited company, fast and straightforward with barclays as already have business banking with them, says cash in the bank in 24 hours. Other half is self employed and does all banking with HSBC personal, this too worked but my advice is don't use Safari browser as it not tested properly, you cannot even enter anything in the postcode field and also the date format isn't showing so you end up trying to guess how it is laid out. Just use Chrome it works fine, and make sure your tax assessment form is in PDF format! Unlike Barclays where is said cash in the bank in 24 hours, it says you will be contacted etc...guess they have to triple check!

NatalieAGC

I think TIDE are due to be added to the accredited list for BBLS. Watch this space 

they are updating regularly on Twitter 

Grumpy_chap

For the bounce back loans, the scheme is open until 4th November, so if the loan is not need absolutely straight away, it may all get easier in a short while along the road.

NatalieAGC

Grumpy_chap said:

For the bounce back loans, the scheme is open until 4th November, so if the loan is not need absolutely straight away, it may all get easier in a short while along the road.

Or much harder! I can only see it being open to fraud for many “ new sole traders with personal bank accounts”  they will close the flood gates once they see a trend