BOUNCE BACK LOAN DECLINED

JohnEdwards123

I have applied with my current bank for a bounce back loan . I fulfill all criteria for the loan and have supplied my SA302 etc. They have turned me down withouf explanation. I applied for 25% of turnover.
Now correct me if I'm wrong but as they're 100% guaranteed by the government, how can you be turned down? I didn't think credit checks came into it!?

Also to apply with any lender, you already need to be a banking customer to apply.
HELP AND ADVICE WOULD BE APPRECIATED AS I FEEL LIKE GOING FOR A LONG WALK OFF A SHORT PIER RIGHT NOW!
My anxiety is through the roof now and I dont know how I'm going to keep my business afloat

JakeMM

It’s a fraud check that they conduct, as well as to check you’re not one of the business types that are ineligible to claim. You self certify the amount, they don’t look to see if you can afford it.

You can’t ask them what they didn’t like, you can’t apply again with that bank, but you can open a new account with another bank and try again!

Before you do so though, study your tax forms. Look at your credit file. Have you got different spellings for your name, different addresses for an old bank or credit card you haven’t updated? What is your address on the electoral roll?

boingingian

JohnEdwards123. I have also had the same from Starling Bank this evening. I’ve been established for 13 years, am a sole trader and asked for just less than 25% of my turnover. I uploaded all self employed tax return documents as requested. I actually got my accountant to send them to me digitally for this purpose. The email just said ‘unfortunately we can not offer the lending you requested’. No explanation! I have emailed them requesting a reason. I’m the same as you now! Had plans to keep afloat as well as investment to increase business once I can return. Reading Martins page on it, there is no reason whatsoever why I (and seems like you too) can not get this help. I hope someone can answer on here

JakeMM

Were you a new starling customer? 

boingingian

Yes Jake. I’ve always traded using a personal account as it’s not necessary to have a business account with sole trader. I opened both a personal and business account with starling because they said I needed one to apply for the BBLS and have started to switch DDs etc

boingingian

I’ve just checked my Credit Files with Clearscore and Credit Karma. I’ve raised a dispute with TransUnion before and got no where because they have me as not on the electoral role because they list my previous address from 16 months ago as current address (only on report). Everywhere else it’s on their is my current address where I have been on the electoral role for a year. 

Could this be the issue for my declined application?

boingingian

In fact I’ve just got a direct TransUnion report and their file is correct so that shouldn’t be the problem 

hb2

There are known problems with starling that Martin is trying to get to the bottom of  . . .

fdkdes

Bounceback Loans are not to be credit checked, no document should be required aswell, especially if your a limited company. Its a self certify scheme, so if anyone is being asked for accounts etc then they are breaking the rules.  HSBC are offering feeder accounts just for the Bounceback Loan Scheme, even HSBC will tell you, as the government is 100% backing the loan eligible companies wont be turned down. 
Call HSBC and ask for a Bounceback Loan Feeder Account, the account can only be used for 2 transactions then its closed, one transaction for the loan to go into and one for you to transfer it out to an account of your choice. HSBC Coronavirus Customer Support Line 0800 0121 614 (Lines are open 8am – 6pm Monday to Friday) - Ask for a Bounceback Feeder Account.

Businesses from all sectors can apply for a facility. The business must self-certify to its lender the following:
✔ Confirm it is UK-based in its business activity, and established by 1 March 2020
✔ Confirm it has been adversely impacted by the Coronavirus (Covid-19)
✔ Confirm it is not currently using a government-backed Coronavirus loan scheme (unless using BBLS to refinance a whole facility)
✔ Confirm it is not in bankruptcy, liquidation or undergoing debt restructuring

Assessment of affordability and viability - The borrower is required to self-declare they meet the eligibility criteria for the scheme. Lenders do not have to assess a business’ affordability or viability. Lenders are not responsible for the borrower’s decision to borrow.

Businesses should check the British Business Bank website to find out which lenders provide Bounce Bank Loans. Businesses will be required to fill in a short online application form on their lender’s website, which self-certifies whether they are eligible for a Bounce Back Loan facility. Eligible companies will be subject to standard customer fraud, Anti-Money Laundering (AML) and Know Your Customer (KYC) checks. 

karl9911uk

Been told by Santander that they can’t approve my application due to them deeming my account not to be the main spending business account! I have no other accounts, so not sure what they are on about. They have stated their reason is against loan rules.

alboy12

I've had the same issue with Starling and exactly the same reply above from Santander. 
I've now rang HSBC to open a feeder acc, gave the chap on the phone my details and he then said someone  will be in touch within two weeks to sort it out!