BOUNCE BACK LOAN DECLINED

Jaylegend

Hey there, i run a small cafe/restaurant in essex as a limited company and some sole trader (catering) income.

I am trying to apply for the bounce back loan as we will be severely affected over the coming months.

However i'm being rejected at every bank before even speaking to anyone (even lloyds, of whom i have held a current account for 15 years).

they say i need a business account but none are accepting new business account applications, i run my business through my current account as i was rejected 6 years ago by lloyds for business account for poor credit.

I have tax returns and all other relevent information and qualify but seem to be left on the shelf and feel this could be the final nail in the coffin for our small family business.

Please help guys

Caz3121

they say i need a business account but none are accepting new business account applications

if your poor credit problems were more than 6 years ago will Lloyds not allow you to apply for a business account now?
have you tried to open business account at Barclays or feeder account at HSBC? 
https://www.moneysavingexpert.com/news/2020/05/small-business-boost-as-bounce-back-loans-launched/

dunstonh

However i'm being rejected at every bank before even speaking to anyone (even lloyds, of whom i have held a current account for 15 years).

But was it a business account?  it makes a big difference.

they say i need a business account but none are accepting new business account applications, i run my business through my current account as i was rejected 6 years ago by lloyds for business account for poor credit.

That is a breach of T&C.  

And running a Limited company through a personal bank account is an automatic rejection.

You need to try a different bank. 

AlexPerry

Hiya,
I am an independent travel agent and have been self employed since April 2019.  I run my business through a personal account with Lloyds, as i was decline d a bank account with all of the major banks.  Now as with many other businesses i have been hit hard, having to offer refunds to clients for holidays which includes any commissions a.k.a my earnings.  I am financially in the worst position that i have ever been in, due to any monies i did have have had to be given to clients- meaning that i not only worked for the booking for free, but i have also spent hours on the telephones etc, which costs me money.  Becuase i only went self employed in April 2019, i was not eligible for the Self Employed Income Support Scheme, wasnt eligible for Universal Credit or anything else.  I have had ZERO help.  Then came the Bounce back loans- a loan for everyone provided you were a sole trader, partnership or club, had you account and were trading prior to March 2nd 202o, or so i thought.
I applied for a feeder account with HSBC, and after 9 weeks was declined, i have also applied with both Lloyds and Metro who i have a personal accounts with, they have also rejected me.
What else do i do- no other bank is accepting new customers, and i really am so near to the end, i need help from somewhere
Thank you

sam8787

Barclays seem to be the only one opening new Business accounts. I was in the same boat as you, I bank with Nationwide and Tesco. Was refused a HSBC feeder account for some reason. I applied for Barclays. After 17days got an email asking to prove trading. 2 days later account set up. Applied for bounce back loan the same day and received funds 3 days later (today). 

sealord

A friend of mine applied for BBL, through Lloyd's business account. He got the following msg at the end of his application.

" Thank you for submitting your application. We will now review it. Subject to final checks, we will procesd your application and email you loan agreement".

He asked me , what I make of it ? I simply, said to him , your application can go either way. Rejected or accepted. Did I give him him the right answer by looking at the msg he received ? OR, it could be a kind of standard msg, bank would send after applying for BBL ?
Anybody, any idea please ?

Cheers

dunstonh

He asked me , what I make of it ? I simply, said to him , your application can go either way. Rejected or accepted. Did I give him him the right answer by looking at the msg he received ? OR, it could be a kind of standard msg, bank would send after applying for BBL ?
Anybody, any idea please ?

Impossible to say.  However, Lloyds have been excellent with the BBL.   The vast majority of theirs get advanced within 24 hours of application.   So, if his is taking longer than 24 hours, then it has potential issues.

Percy1983

sealord said:

A friend of mine applied for BBL, through Lloyd's business account. He got the following msg at the end of his application.

" Thank you for submitting your application. We will now review it. Subject to final checks, we will procesd your application and email you loan agreement".

He asked me , what I make of it ? I simply, said to him , your application can go either way. Rejected or accepted. Did I give him him the right answer by looking at the msg he received ? OR, it could be a kind of standard msg, bank would send after applying for BBL ?
Anybody, any idea please ?

Cheers

Not much to worry about, the final checks will just be ID checks and verifying income statements on the application.
I got the same message and received the money the day after.

PoshSteve

I work for a non-for profit organisation but we are a limited company and have been loyal customers with the TSB for a very long time. We applied for the bounce back loan to be told that we were not eligible because we are a non-for profit entity. It does mention this on their website although not at the time of application. Are all banks the same? As this loan was to assist businesses and charities we are quite disappointed by this as we have severly affected in recent months.

Jeremy535897

Banks should all follow the same guidelines. See https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-schemes/bounce-back-loans/faqs-for-small-businesses/
Charities can apply, but not publicly funded bodies.