Bounce Back Turnover question

crazywithhelp

I have some debts built up from the business, but they are personal. To put it in comparison paying nearly 30% interest on most of it, which is what has been crippling myself and the business for a while. With the Bounce Back Loan I could use it to clear all the debt, I would save thousands on inetrest and just have this single BBL to pay back at a smaller interest and payment every month would be low so easy a afford.
QUESTION....would it be wrong to claim more than my turnover to get more loan. I have read they don't check or require proof of turnover so if I could borrow more I would be personally in a better spot and my business would be too.

Has anyone else done this, as long as I pay it all back do anyone see any issues in doing this?

Jeremy535897

There will be checks, and if you deliberately falsify an application form, you could be committing fraud. FAQs say:

"What checks will I be subject to?

Applicants are required to self-declare they meet the eligibility criteria for the Scheme. Applications from eligible borrowers will be subject to customer fraud, Anti-Money Laundering (AML) and Know Your Customer (KYC) checks."

Grumpy_chap

crazywithhelp said:

QUESTION....would it be wrong to claim more than my turnover to get more loan. I

YES = fraud.

gwc1

No checks for turnover or your projected turnover and how can it possibly be fraud? You have to pay it back!
This is a great chance to obtain money at the cheapest you’ll ever get it in real world terms, self employed have been hit hard enough!

crazywithhelp

A he says above no checks are done. My bank confirmed this, they said the government may in future ask but given the amount of claims and fact its paid back i cant see them checking.

It certainly isnt fraud since you pay it back. Since projected turnover is a made up number anyway its a get out clause for not hitting that turnover. 

What happens of your business closes anyway. Does seem a open book to borrow what you need.

crazywithhelp

Jeremy535897 said:

There will be checks, and if you deliberately falsify an application form, you could be committing fraud. FAQs say:

"What checks will I be subject to?

Applicants are required to self-declare they meet the eligibility criteria for the Scheme. Applications from eligible borrowers will be subject to customer fraud, Anti-Money Laundering (AML) and Know Your Customer (KYC) checks."

Not being funny but those checks are standard and just to confirm who you are. Nothing related to turnover and it is not fraud.

Jeremy535897

If you are borrowing personally, they will almost certainly ask you for your 2018/19 tax return, or ask you to file your 2019/20 tax return and send it to them if you weren't trading in 2018/19. If you are using projected turnover and put in an unjustifiable figure, they may look at your actual results and raise questions if the figures are manifestly different. If you deliberately lie on an application form and they realise, the best you can hope for is that the loan application will be rejected, and you would probably find it very hard to get another loan in future. The worst case scenario is a prosecution for obtaining money by deception.

Grumpy_chap

It's fraud if you (knowingly) make an incorrect statement for gain. The gain being the low-cost loan. There may not be much checking upfront, but you can be sure there will be verification if you default and try to rely on the Government underwriting.

gwc1

Your complete post is pure conjecture!
have you applied and are you self employed!
The projected turnover and actual turnover is pure conjecture anyway! How can anyone give an accurate figure given we have no idea what the future is? 

If you have a business bank account you won’t be asked for tax returns or any proof of income!
These are loans not grants!

Jeremy535897

You did not make it clear that you would be using projected turnover and I made the point that if that is what you are going to do, you would only have problems if your projected turnover was manifestly different from the reality (and you could give no good reason for that).

crazywithhelp

But it is a loan you would never be done for fraud as long as you pay it back.
The bank do ZERO CHECKS on the amount you claim i was personally told this its a auto approved loan as long as you have a business account.

As for checking your tax return that is irrelevant as its not done on the tax year april to april its turn over from january to december. So your turnover would not reflect the same as different months used.