Business Bounce Back Loan Underestimated Annual Forecast

ab339

Hi,
I received a BBL but underestimated my annual forecast as this is my first year trading. When I contacted the bank, I was informed that many people are in the same situation, and the Lending team manager stated last week that there will be an update regarding this issue, now I have tried contacting the manager over several days, spent hours trying yo speak with her  & looks like she is avoiding me, also when I queried my cooling off period, she said she did not know as the BBL is something new.

Surely there must be something in place to amend my loan and rectify my error.
Please Advise Urgently.
Thanking you in advance.

HopeAndDriftWood

Last week the BBB said there were no plans to allow people to amend loans, but they’d review it if there was enough demand once the initial spike was out of the way. 

If I’m honest, I’d proceed as if you’re only going to get what you applied for, and keep your eye open for any news that you can now amend your claim. 

mobilejo

ab339 said:

Hi,
I received a BBL but underestimated my annual turnover as this is my first year trading. When I contacted the bank Santander I was informed that many people are in the same situation, and the Lending team manager stated last week that there will be an update regarding this issue, now I have tried contacting the manager over several days, spent hours trying yo speak with her  & looks like she is avoiding me, also when I queried my cooling off period, she said she did not know as the BBL is something new.

Surely there must be something in place to amend my loan and rectify my error.
Please Advise Urgently.
Thanking you in advance.

What factors have led you to believe that your T/O would actually be higher than your first estimate?

Grumpy_chap

I don't think there is anything in place to correct the application value and I am not sure that cooling off period applies as the rules for Bounce Back Loan specifically exclude the consumer protections often associated with a low-value business loan.

There was no rush to apply as the scheme is open until beginning November - a fact that seems to have been lost on many.

As this is your first year of trading, it is permissible to use Predicted Turnover.  That must be a number you have readily available from your start up business plan.  If not, take the average turnover of the few months you have been trading and multiply by 12.  Turnover plan is one of the first fundamentals you need to know for any business.

It looks like the OP's error and one they need to chalk up to experience.  It is only permissible to apply for one BBLS.

As a new business, the OP may be able to apply for Start Up Loan in addition.

ab339

mobilejo said:

ab339 said:

Hi,
I received a BBL but underestimated my annual turnover as this is my first year trading. When I contacted the bank Santander I was informed that many people are in the same situation, and the Lending team manager stated last week that there will be an update regarding this issue, now I have tried contacting the manager over several days, spent hours trying yo speak with her  & looks like she is avoiding me, also when I queried my cooling off period, she said she did not know as the BBL is something new.

Surely there must be something in place to amend my loan and rectify my error.
Please Advise Urgently.
Thanking you in advance.

What factors have led you to believe that your T/O would actually be higher than your first estimate?

My annual forecast would be considerably higher as I did not take into account quotes & dd not take this this into account.

Grumpy_chap

For the existing business, the BBLS uses 2019 turnover.  It seems as though 2019 turnover means calendar year, but there could be an interpretation that it means 2019-20 tax year.  Either way, that is past turnover and any forecast or expectation for future turnover to be higher because the business was about to sign "the deal of the century" is irrelevant.

ab339

For the banks to start taking a look at amending the loans you have to email the CEO of the bank.

Google search for CEO of your bank then send email with your BBL loan application number in the subject line and explain the problem...

Your issue is then escalated & then receive a response stating that "this process is yet to be finalised", and be at the front of the queue when the process is in place.

Hope that helps.

ab339

Grumpy_chap said:

For the existing business, the BBLS uses 2019 turnover.  It seems as though 2019 turnover means calendar year, but there could be an interpretation that it means 2019-20 tax year.  Either way, that is past turnover and any forecast or expectation for future turnover to be higher because the business was about to sign "the deal of the century" is irrelevant.

Obviously the virus outbreak has put a dent into my business turnover and signing contracts is part of revenue income that then is part of the business turnover.

I do not agree with your sarcastic comment and yes that signing of contracts would have meant a significant increase in turnover so yes it is relevant and a forecast is just a forecast, its a variable assumption (liable to change multiple times), thats why I am in this situation. 

I am a start-up business.

Grumpy_chap

My comment was not meant to be sarcastic.  I was merely pointing out that the rules for calculating how much can be borrowed under BBLS are based upon 2019 turnover and while there may be reasonable ways of interpreting what is meant by "2019 turnover", none of them include "my turnover would be considerably higher as" whatever follows the "as" because it is in the future and not within any interpretation of "2019 turnover".  The only case the BBLS allows for predicted turnover to be used to calculate the loan allowable is for new start up businesses.

sam8787

Its the people who are exaggerating their turnover to get the most amount of loan possible who are going to ruin in for the legitimate businesses and sole traders who have actual turnover and tax returns who haven't been able to get a loan yet

YASINIB

Hi
I am also in the same boat where I need my loan amending. RBS has advised there are no processes in place at this moment in time. I think everyone needs to get together and push the banks to open up the process of amending the loans.