Bounce back loans

spencerrothchild

Pdavey5555 said:

The problem is I don’t have a year accounts so I don’t no if they take that into account???

Yes how do we prove our projected earnings of it wasn’t for the crisis?

DonutMonster

@spencerrothchild - you don't need to prove projected earnings, it's self certifying. This was one of the problems with CIBLS that prevented businesses from getting funds.

Hardly_Quim

I have just received my funds.

Pdavey5555

When did you apply???

Pdavey5555

Must of been yesterday yea?

NatalieAGC

Grumpy_chap said:

@NatalieAGC - I am still thinking about the 'new business' part of this.

For a new Ltd Co, it had to be trading by 1st March, so not possible to just set a new company now and qualify.

For a new sole trader, there is not the same formal record, but still had to be trading (or claim to be) by 1st March.  This means notifying HMRC of being a sole trader, at the latest with 2019-20 tax return.  That could be as late as January next year, so too slow a process to be taken into account.

I was not aware that 'projected annual turn over' could be used rather than actual past turnover.  With the new business, I assume it is not possible to just go in and say "I'll turn over £200k so can I have £50k please?"  As a minimum, once that is the projected turn over, the business needs to register for VAT so it seems entirely reasonable that the banks check VAT number for any application for a loan above £21.25k, being 25% of the VAT registration threshold which I think is at £85k.  Need to register for VAT as soon as turnover goes over the threshold or you know it will.

This puts some limits that are easy enough to apply by the banks.  Still, £20k or just over is a big lump to have interest free.  BUT it still needs to be paid back, and we can be sure the Banks and Government will pursue personal assets of sole traders that default.  If going down this route, then the real benefit of the interest free period on £20k is not worth it if lumbered with tax returns etc for several years following.  

There could be some protections put in place easily, such as requiring HRMC notification of sole trader operation and VAT registration (if claiming above £85k turnover) to mitigate against the fraud risks.

I think once a review has been done on the initial BBLS I think affordability will be factored in.  Too many people are already saying “ what if I. Get the bounce back loan and business fails “. If that is the case they shouldn’t be applying for it... OR they are applying for the wrong reasons ( ie fast cash why not try it) 

we will see. 

Hardly_Quim

Pdavey5555 said:

When did you apply???

Monday morning with Lloyds.

Hardly_Quim

Jeremy535897 said:

Don't forget that if you don't pay the loan back the government will come to you for repayment if you are a sole trader.

What about a Ltd Company - the loan is in the company name, not the directors.

Jeremy535897

Hardly_Quim said:

Jeremy535897 said:

Don't forget that if you don't pay the loan back the government will come to you for repayment if you are a sole trader.

What about a Ltd Company - the loan is in the company name, not the directors.

That's why I said "if you are a sole trader".

DaveHarris

I run a small Ltd Company and bank with Barclays. I am also a member of a partnership, which also banks with Barclays. I tried several times to apply for the Bounce Back Loan for the Ltd Company, both yesterday and today (it doesn't have much money in its bank account), and each time got an "we're experiencing huge volumes, try again in a few days" type error message. After a few more failed attempts today, I tried again, but this time on behalf of the partnership (which has a lot more in the account), and I got straight through to the application page immediately. Same result over 5 application attempts for both accounts. I'm not usually a fan of conspiracy theories, but it feels a bit like Barclays is pre-vetting applications based on the size of the bank balance. I'd be interested to know if anyone else has experienced this issue.