Bounce back loan for self employed

NatalieAGC

HSBC are so far the only one offering to new customers however temp account has to be opened via them first 

DonutMonster

NatalieAGC said:

HSBC are so far the only one offering to new customers however temp account has to be opened via them first 

And I spent 2 hours on the phone waiting in the queue to speak to them about it, before giving up.
A Temporary Feeder account is created if you don't bank with them which is the first I've heard to come from a high street lender. Hopefully the others will follow suit as there is absolutely no reason not to.
I'll try again tomorrow

_nate

Has anyone successfully opened a Temporary Feeder account with HSBC? I am not a customer. I called the helpline and was referred to the normal business banking number - got nowhere after waiting 30 mins twice, and one hour on the third occasion, because the line just cut off. Instead, I called the 'open a business bank account' line, gave my details and was told I would be contacted in 3-5 days...

MarkJones4

Applied for BBSL today, I bank with Lloyd's. they have applied a 2.5% 'fee' to my application to cover the interest free period. I think this is illegal/wrong interpretation of the rules, so my £4000 loan will start off at £4100. Any advice appreciated

Jeremy535897

MarkJones4 said:

Applied for BBSL today, I bank with Lloyd's. they have applied a 2.5% 'fee' to my application to cover the interest free period. I think this is illegal/wrong interpretation of the rules, so my £4000 loan will start off at £4100. Any advice appreciated

The FAQs from this site https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-schemes/bounce-back-loans/faqs-for-small-businesses/ say:

"What fees and interest will I be required to pay?

The government has set the interest rate for this facility at 2.5% per annum. Lenders are not permitted to charge any fees."

The specific terms in that document include:

"Repayment terms are six years, but there are no additional fees for early repayment charges.
The government will make a Business Interruption Payment to the lender to cover first 12 months of interest payable.
The borrower has a 12-month principal repayment holiday."

I would ask why the £100 has been applied.

_nate

MarkJones4 said:

Applied for BBSL today, I bank with Lloyd's. they have applied a 2.5% 'fee' to my application to cover the interest free period. I think this is illegal/wrong interpretation of the rules, so my £4000 loan will start off at £4100. Any advice appreciated

The government will pay the first 12 months of interest. Perhaps they actually do so to the loan directly. This might be what is going on: Lloyds certainly can't apply fees, so I would wait and see what others' experience is before worrying.

DonutMonster

Has anyone managed to get through to HSBC to open a loan feeder account? I've been on hold for 3+ hours over last 2 days.
I called the number on HSBCs page and was told to call the business account number but not sure that's right now 

Percy1983

Self employed and applied online with Lloyds and received an instant facility letter via email basically saying they are doing final checks etc.

The Interest 'fee' isn't a fee, its telling you the first years interest and confirming you agree for the government to pay this under De Minimis aid and you haven't exceeded the De Minimis aid limits. They have to tell you this info and you need to keep records for 4 years.

In short the government is funding the the first years interest and being a guarantor to the lender so they can change 2.5%.

_nate

DonutMonster said:

Has anyone managed to get through to HSBC to open a loan feeder account? I've been on hold for 3+ hours over last 2 days.
I called the number on HSBCs page and was told to call the business account number but not sure that's right now 

My experience is similar to yours. I applied for a standard business account on Monday and have to wait for them to confirm my address by post. The postman isn't coming some days and we have a bank holiday on Friday so, well, I am not holding my breath. The same day, I used a dedicated 'account opening' number and provided the details necessary to open a feeder account only to be told I would be contacted in 3-5 working days.

The dedicated Covid support line said that the feeder account opening team were very busy and didn't want people waiting on hold so that was why they were directing people to the general business line, where they could also open the accounts. But the general business line simply hangs up whenever I wait 30-60 mins on hold.

Therefore, I am inclined to wonder whether these feeder accounts are really in operation. Meanwhile, Starling has been trying for a while to get accredited but the government is taking their time doing so. So much for money within 24 hours.

aaronshaun09

I have applied though tsb as the accept through personal account . However I still ain't heard anything back . I thought I was supposed to be a fast process. Has anyone applied for a tsb bbl and had an acknowledgement.