HSBC Bounce Back issues.

Jeremy535897

ashley0007 said:

Jeremy535897 said:

ashley0007 said:

Jeremy535897 said:

ashley0007 said:

Jeremy535897 said:

Look at the detail in the paperwork. Did you sign as an officer of the company? Who does it say owes the debt?

My name (not my LTDs name) was listed as the borrower and the borrower owes the debt.
It states that clearly as the first few (and in bold) sentences on the agreement document.

It sounds like an error by the bank, as unless you are also self employed you would not be entitled to a BBL.

I am self-employed, that is what makes this a bit ....

I am not 100% clear about what is happening here, but if you are self employed on the one hand, and are a director of a limited company on the other, and you used your bank account rather than the company's bank account in the application, maybe this is why the loan has been put in your name?

I am the owner and the sole director of my LTD. I opened a bank account with HSBC in my LTD's name.
I applied for a Bounce Back loan via my LTD (and the newly opened business account) and was accepted.
In the agreement it said to transfer the loan amount to my LTDs business current account.
Begs the question why then the agreement is not in my LTD name but in my personal name.

Anyhow, I retry in a fortnight... 

You said "I am self employed" in an earlier post. Sole directors of limited companies are not self employed, unless they have a trade separate from the limited company. Are you self employed or not?

ashley0007

Oh, I was not aware of this definition. I am, then, only an employee of my LTD and I do not undertake any other form of trade.

Jeremy535897

ashley0007 said:

Oh, I was not aware of this definition. I am, then, only an employee of my LTD and I do not undertake any other form of trade.

Yes, it is an important distinction (for example the self employed income support scheme is not available to directors). It looks like the bank has incorrectly treated it as a personal loan (as I said, you as an individual are not eligible for a BBL so it is a mistake). Are you absolutely sure the newly opened business account is in the company name?

dunstonh

ashley0007 did you state that you were self employed on the application to HSBC?

Do HSBC hold your business banking account under the limited company name? (i.e. you are not using a personal account)

khanji17

Just got off the phone with a very helpful person from HSBC, he asked his boss who asked her boss as they didn't know the answer and got back to me confirming even if the documents are in my name, its actually a loan for my limited company and not for me, as my name is on the company's bank account as director, the documents came through in my name, I applied from my company's bank account and thats where the money is going. So all fine, phew...I called them not expecting much help but was pleasantly surprised.

ashley0007 said:

Oh, I was not aware of this definition. I am, then, only an employee of my LTD and I do not undertake any other form of trade.

Jeremy535897

khanji17 said:

Just got off the phone with a very helpful person from HSBC, he asked his boss who asked her boss as they didn't know the answer and got back to me confirming even if the documents are in my name, its actually a loan for my limited company and not for me, as my name is on the company's bank account as director, the documents came through in my name, I applied from my company's bank account and thats where the money is going. So all fine, phew...I called them not expecting much help but was pleasantly surprised.

ashley0007 said:

Oh, I was not aware of this definition. I am, then, only an employee of my LTD and I do not undertake any other form of trade.

Are you going to ensure that they confirm in writing that you are not expected to repay the loan?

ashley0007

Jeremy535897 said:

ashley0007 said:

Oh, I was not aware of this definition. I am, then, only an employee of my LTD and I do not undertake any other form of trade.

Yes, it is an important distinction (for example the self employed income support scheme is not available to directors). It looks like the bank has incorrectly treated it as a personal loan (as I said, you as an individual are not eligible for a BBL so it is a mistake). Are you absolutely sure the newly opened business account is in the company name?

Yes, it is in my LTDs name. It even says so in the confirmation document.

ashley0007

dunstonh said:

ashley0007 did you state that you were self employed on the application to HSBC?

Do HSBC hold your business banking account under the limited company name? (i.e. you are not using a personal account)

I did not indicate anywhere to HSBC that I was self-employed, only that I want to open a business account for my LTD (with the intention of applying for the bounce back loan).

I opened the business account in the LTDs name .
The bounce back loan application was for my LTD, the agreement document I was sent was in my name.

ashley0007

khanji17 said:

Just got off the phone with a very helpful person from HSBC, he asked his boss who asked her boss as they didn't know the answer and got back to me confirming even if the documents are in my name, its actually a loan for my limited company and not for me, as my name is on the company's bank account as director, the documents came through in my name, I applied from my company's bank account and thats where the money is going. So all fine, phew...I called them not expecting much help but was pleasantly surprised.

ashley0007 said:

Oh, I was not aware of this definition. I am, then, only an employee of my LTD and I do not undertake any other form of trade.

I am happy to hear that. Best to get that in writing and maybe also amend the agreement document(s).

khanji17

An update, I emailed HSBC yesterday saying that they sent me wrong echosign (even though I signed it), today they sent me another one which was in my company's name and the funds are in my account (not yet accessiable)
For everyone who got the documents in their own name instead of the limited company, can just email them to resolve this issue.