HSBC BOUNCE BACK REFUSED

I applied online today for a Bounce Back loan with HSBC.  I am a customer and use a personal account for my small self employed business. After the standard questions it immediately came back with a refusal, not eligible. It hadn't even asked me for a copy of my last tax return, when I read through eligibility criteria it said it would ask if using personal account for business. After reading eligibility I should be entitled??

Comments

  • MovingForwards
    MovingForwards Posts: 17,139 Forumite
    10,000 Posts Sixth Anniversary Name Dropper Photogenic
    It may be the fact you have a personal account, not a business account:

    If you do not already have an HSBC Business Bank Account and do not want to open one, or if you do not want to draw down the loan into your existing HSBC account, we will open a temporary feeder account to use to draw down the loan, and will then arrange with you to transfer the funds to another account in your name at another bank (subject to our standard transaction checks).

    Have you tried to call / live chat them?
    Mortgage started 2020, aiming to clear 31/12/2029.
  • Vickyvegas
    Vickyvegas Posts: 6 Forumite
    First Post
    Thanks for your reply.
    Tried again this morning and it requested copy of Tax return so perhaps just an overloaded system yesterday 🤞
  • I applied 7 weeks ago for a feeder account and was refused last week 10th June, I am a limited company and have been trading for just  a year now. I thought that the bounce back loan was not credit checked and it stated I had been declined after they carried out a personal credit search.  I have a basic bank account with them but this appears to be worthless, this is the only finance that I could have applied for as every other avenue has been exhausted.  I am entitled to no benefits, no universal credit, no job seekers allowance, no ssp, absolutely nothing.  I have had no income since the 18th March and still the HSBC will not open a feeder account for my business.  I have checked my credit file but do not understand why I would be declined for the feeder account for business purposes
  • Jeremy535897
    Jeremy535897 Posts: 10,730 Forumite
    10,000 Posts Fifth Anniversary Photogenic Name Dropper
    I applied 7 weeks ago for a feeder account and was refused last week 10th June, I am a limited company and have been trading for just  a year now. I thought that the bounce back loan was not credit checked and it stated I had been declined after they carried out a personal credit search.  I have a basic bank account with them but this appears to be worthless, this is the only finance that I could have applied for as every other avenue has been exhausted.  I am entitled to no benefits, no universal credit, no job seekers allowance, no ssp, absolutely nothing.  I have had no income since the 18th March and still the HSBC will not open a feeder account for my business.  I have checked my credit file but do not understand why I would be declined for the feeder account for business purposes
    While credit checks are not carried out for BBLs, they are carried out for opening new bank accounts.
  • dunstonh
    dunstonh Posts: 119,382 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    I applied 7 weeks ago for a feeder account and was refused last week 10th June, I am a limited company and have been trading for just  a year now.

    Why do you need a feeder account?

    Why are you not using the bank where  you hold your limited company account?

    I thought that the bounce back loan was not credit checked and it stated I had been declined after they carried out a personal credit search.

    Whilst the bounce back loan is not credit checked, they may run a check for a normal bank account.    Also, it may not be a credit check as you are thinking but their internal check.

    but do not understand why I would be declined for the feeder account for business purposes

    You are a limited company.  You shouldn't need a feeder account.  The bank where you hold your business banking account should be used.       

    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • gizmo111
    gizmo111 Posts: 2,663 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    I applied 7 weeks ago for a feeder account and was refused last week 10th June, I am a limited company and have been trading for just  a year now. I thought that the bounce back loan was not credit checked and it stated I had been declined after they carried out a personal credit search.  I have a basic bank account with them but this appears to be worthless, this is the only finance that I could have applied for as every other avenue has been exhausted.  I am entitled to no benefits, no universal credit, no job seekers allowance, no ssp, absolutely nothing.  I have had no income since the 18th March and still the HSBC will not open a feeder account for my business.  I have checked my credit file but do not understand why I would be declined for the feeder account for business purposes
    Who is your Ltd Co Business Account with?
    Mama read so much about the dangers of drinking alcohol and eating chocolate that she immediately gave up reading.
  • Mitchel.
    Mitchel. Posts: 63 Forumite
    Eighth Anniversary 10 Posts Combo Breaker
    I applied 7 weeks ago for a feeder account and was refused last week 10th June, I am a limited company and have been trading for just  a year now. I thought that the bounce back loan was not credit checked and it stated I had been declined after they carried out a personal credit search.  I have a basic bank account with them but this appears to be worthless, this is the only finance that I could have applied for as every other avenue has been exhausted.  I am entitled to no benefits, no universal credit, no job seekers allowance, no ssp, absolutely nothing.  I have had no income since the 18th March and still the HSBC will not open a feeder account for my business.  I have checked my credit file but do not understand why I would be declined for the feeder account for business purposes
    did you do all the onboarding application to set a feeder account up even?
  • Doggysoft
    Doggysoft Posts: 9 Forumite
    Eighth Anniversary Name Dropper First Post Combo Breaker
    edited 23 June 2020 at 10:05AM
    @dunstonh said:

    You are a limited company.  You shouldn't need a feeder account.  The bank where you hold your business banking account should be used.       

    I use Tide for my banking. They ran out of money after 2000 applications apparently. HSBC are allowing customers of other banks to apply. 
  • victoriats
    victoriats Posts: 10 Forumite
    Name Dropper First Post
    Hi, I applied for a HSBC BBL ad have been refused due to being a start up. I am a HSBC customer don't have a business account. I have tried calling them and been on hold for 3 hours in total! I was refused last week on Friday 3rd July via email. What can I do? Thanks Victoria
  • What can I do?
    That would somewhat depend when you started your business. Providing you had started trading in time then potentially you could apply with another bank, although all banks are wary of new start ups without business bank accounts. 
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 350.3K Banking & Borrowing
  • 252.9K Reduce Debt & Boost Income
  • 453.2K Spending & Discounts
  • 243.3K Work, Benefits & Business
  • 597.8K Mortgages, Homes & Bills
  • 176.6K Life & Family
  • 256.3K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.