Bounce back loan

Jeremy535897

Things may change on Monday.

pipster547

Jeremy535897 said:

Things may change on Monday.

OK I hope so I have applied for a Starling account anyway so fingers crossed!

markyt1980

i just asked starling bank earlier the same question and also if credit searches are done.  this was what i got back.

S

Yes, it is available to sole traders.

We  do a soft credit check when you apply for it.

it seems no one knows what's going on anymore.  

scrooger

From their FAQ:

• I’m a sole trader, can I get a loan under this scheme from Starling?

  Yes, if you are a sole trader, you are eligible for the Bounce Back Loan Scheme.

• I have a poor credit history, am I eligible for a loan under this scheme?

  Yes, we will be able to support businesses that have a poor credit history under this scheme.

InkedByrd

The bounce back loans are confusing me. I was a sole trader but I ceased on 30/3/19 to focus on PAYE employment. My 18/19 tax return reflects this. My PAYE employer fell into administration 31st January 2020 and I returned to being a sole trader.
I cannot get the self employed grant as 18/19 64% of income was PAYE and I ceased S/E, I work from a converted garage at my home. From when my PAYE until 31st March 2020 my turnover has been just under 5k. I would of expected my turnover to be around 55k in 2020/21 with wedding season before Covid. 
As a single adult with no dependents and a mortgage, I am not eligible for universal credit so a mortgage holiday and savings is sustaining me at the moment but I really can only manage until July unless something changes. My profession is mooted as one of the last to return as we cannot socially distance.  I do have credit cards for emergency use but APR is around 20% so I do not want to use them. I have been applying for any work advertised but no joy so far.
Has anyone been in a similar position and were they able to apply for a bounce back loan?  As a last resort it may well save me from the wolves but only if they consider projection and dont take 5k as my yearly turnover.

whats_retirement

Just had this email from Starling.  I've been a sole trader for 9 months, not vat registered, so I need to complete my tax return NOW before I can apply for a loan !!

To ensure we provide the most seamless experience possible, we’ll be staggering Bounce Back Loan applications next week. Due to the additional documentation checks required for sole traders, applications will now open on Tuesday 12 May.

To help you prepare in advance, here’s a breakdown of what you’ll need during the application process:

• An activated Starling Business bank card

• A verified email address

If you were trading on or before 5 April 2019

• Your 2018/2019 tax return, including the SA100 and SA103S/F

• Your 2018/2019 tax calculation (SA302), which you can find on your government gateway account

If you started trading between 6th April 2019 and 1 March 2020

• Your Unique Tax Reference (UTR) number and

• EITHER your VAT number if you are VAT registered

• OR your 2019/2020 tax return. We know this is earlier than you would normally do your tax return, but it will help us verify your business.

Kind regards,

Team Starling

thumpthump

whats_retirement said:

Just had this email from Starling.  I've been a sole trader for 9 months, not vat registered, so I need to complete my tax return NOW before I can apply for a loan !!

To ensure we provide the most seamless experience possible, we’ll be staggering Bounce Back Loan applications next week. Due to the additional documentation checks required for sole traders, applications will now open on Tuesday 12 May.

To help you prepare in advance, here’s a breakdown of what you’ll need during the application process:

• An activated Starling Business bank card

• A verified email address

If you were trading on or before 5 April 2019

• Your 2018/2019 tax return, including the SA100 and SA103S/F

• Your 2018/2019 tax calculation (SA302), which you can find on your government gateway account

If you started trading between 6th April 2019 and 1 March 2020

• Your Unique Tax Reference (UTR) number and

• EITHER your VAT number if you are VAT registered

• OR your 2019/2020 tax return. We know this is earlier than you would normally do your tax return, but it will help us verify your business.

Kind regards,

Team Starling

This has done my heart good!!
I am vat registered
Started self employment in Sept 2019
Thank you so much for posting this!

Grumpy_chap

InkedByrd said:

The bounce back loans are confusing me. I was a sole trader but I ceased on 30/3/19 to focus on PAYE employment. My 18/19 tax return reflects this. My PAYE employer fell into administration 31st January 2020 and I returned to being a sole trader.
I cannot get the self employed grant as 18/19 64% of income was PAYE and I ceased S/E, I work from a converted garage at my home. From when my PAYE until 31st March 2020 my turnover has been just under 5k. I would of expected my turnover to be around 55k in 2020/21 with wedding season before Covid. 
As a single adult with no dependents and a mortgage, I am not eligible for universal credit so a mortgage holiday and savings is sustaining me at the moment but I really can only manage until July unless something changes. My profession is mooted as one of the last to return as we cannot socially distance.  I do have credit cards for emergency use but APR is around 20% so I do not want to use them. I have been applying for any work advertised but no joy so far.
Has anyone been in a similar position and were they able to apply for a bounce back loan?  As a last resort it may well save me from the wolves but only if they consider projection and dont take 5k as my yearly turnover.

Keep it simple, and less details, then this does answer itself.  The key criteria for the bounce back loan are:

You can apply for a loan if your business:

• is based in the UK
• was established before 1 March 2020
• has been adversely impacted by the coronavirus

So, simply, you started your new business as a sole trader 1st February (which is before 1st March) and you have been impacted by coronavirus (cancelled wedding bookings).  Assuming you are based in UK, then qualification is satisfied.

Adding all the stuff about a past sole-trader business and working for someone else PAYE just muddies the waters.

moulins123

When they say 'established' before 1st march 2020, what evidence would they require? I started working as self employed last summer but did not register as self employed at the time (I know, I know....always meant to get round to it. Which I realise is no excuse) 
However I can prove the existence of the business was before 1st March 2020.

Grumpy_chap

I think, but please don't quote me, the bounce back loan uses self-certification.

Also, if you have a business bank account, that will allow your bank to verify.