HSBC Bounce Back Loans

liammaw

HSBC are falsely representing their BBLS application route for those that have a personal account but not a business account and have a limited company which is an option provided on the eligibility selection on the BBLS online application portal.  See below.

HSBC are rejecting all applications through this route as they are saying that this is for Sole Traders only! and not for limited company's but this contradicts then the second option in the selection which is specifically for Sole Traders.  Also the application through the 3rd option specifically gives you the option to select your legal status as a limited company.  See Below.


Further to this it also asks the applicant to declare they are a limited company within section 5 Clause 5 within the application document.  See below.


Anyone who has used this online portal to apply as per the guidance which is given by HSBC! will be rejected and HSBC are refusing that the information is incorrect and using this as a delay and stall tactic to not lend money to SME's who are in need of the BBLS.  My application has taken 3 weeks and then it was rejected because of this!. 

Danrover82

You're joking!?
I ticked the 3rd box after talking to HSBC as a self employed joiner who uses the personal  account solely for the business.

Now I'm guessing I not gonna get anything.   That really put me up s*** creek without a paddle if true  as I start back on Tuesday and my UC will stop 

invisableman

I have had exactly the same thing happen to me as the OP, have been told since I applied on the 6th that my application was being looked at , I even called into my local branch and got the manager to check as I had no correspondence back. Then on Wednesday was told i had to apply for a feeder account and wait weeks longer ... I had not checked the document like the op but was sure I had filled in the form correctly at the time.. The whole thing is making me feel like the world is against me to be honest... I speak to friends who got there money in 48 hours and some have money in the bank for 3/4 companies as well 

Danrover82

I was told I needed business or feeder account. Then I'm told your personal account  for business is OK as it shows everything. 

I'm guessing we won't qualify now? I applied 15th and felt OK... kinda till reading this post now I feel sick

invisableman

I asked for them. To put me in the big queue for a feeder account anyway as the lady I spoke to said it was ok to apply with them even though I’m on the waiting list with Tide now ?? I’m sure everyone that is entitled to it will get there money eventually but I’m in a very tight position with cash at the moment and it seems very unfair that who I bank with means I have to wait weeks or months longer than if I had chosen the banks that seem to be doing a good job and are not all over the forum 

Jeremy535897

liammaw said:

HSBC are falsely representing their BBLS application route for those that have a personal account but not a business account and have a limited company which is an option provided on the eligibility selection on the BBLS online application portal.  See below.

HSBC are rejecting all applications through this route as they are saying that this is for Sole Traders only! and not for limited company's but this contradicts then the second option in the selection which is specifically for Sole Traders.  Also the application through the 3rd option specifically gives you the option to select your legal status as a limited company.  See Below.


Further to this it also asks the applicant to declare they are a limited company within section 5 Clause 5 within the application document.  See below.


Anyone who has used this online portal to apply as per the guidance which is given by HSBC! will be rejected and HSBC are refusing that the information is incorrect and using this as a delay and stall tactic to not lend money to SME's who are in need of the BBLS.  My application has taken 3 weeks and then it was rejected because of this!. 

A limited company cannot have a personal account, so only options 1 and 4 are relevant to limited company applications. Where in the text does it say these options are for limited companies? Why would you think that your own personal bank account with HSBC would have any relevance to a limited company application, even if you own 100% of it? They couldn't pay the loan funds into your own personal bank account in respect of a loan to a company. Limited companies that have an account (always a business account) are within the first option. If you need any more evidence, companies don't do self assessment tax returns, and 5 April is of no relevance to companies.
The applicant box is wide enough to include sole traders, limited companies and other entities. You select the entity you are signing for. The item numbered 5 says "I am a company or a UK resident sole trader (terrible use of English I agree, as someone signing a document cannot be a limited company, but can be an officer of a limited company).

I agree the form is rushed, but HSBC are not stalling. They simply cannot process your incorrect application. You have to choose option 4 if you are applying as an officer of a limited company where that limited company has no HSBC account.

Danrover82

I think I misread the OP

Are you saying you're a limited company using box 3?

Im ST. I was told this was the one to use for me as I started in Oct. 

Jeremy535897

Danrover82 said:

I think I misread the OP

Are you saying you're a limited company using box 3?

Im ST. I was told this was the one to use for me as I started in Oct. 

That's how I read it. You are not in the same situation because you are a sole trader.

Danrover82

I think just with the amount of time it's taking. And different departments saying different things that I'm expecting it to go down.

The not knowing is worst part

dunstonh

A limited company cannot have a personal account, so only options 1 and 4 are relevant to limited company applications.

Legally, there is no requirement for a limited company to have a bank account.   A director can use other accounts but it makes the accountant's job a nightmare and god forbid if there is an audit.   With cheques/payment payable to an individual yet going through the business accounts it could cause all sorts of issues.

Plus, most bank's T&C do not allow the running of business transactions through a personal account and reserve the right to cease banking facilities if they find out. 

I have only ever seen one limited company without a limited company bank account and to be honest, the person was utterly clueless and ran their business the same way.     Pretty much what you would expect for someone attempting to run a business via their personal account.

Anyone who has used this online portal to apply as per the guidance which is given by HSBC! will be rejected and HSBC are refusing that the information is incorrect and using this as a delay and stall tactic to not lend money to SME's who are in need of the BBLS.  My application has taken 3 weeks and then it was rejected because of this!.

As HSBC T&C states that personal accounts are not for business, they have created responses on the BBL application for those that are complying with their T&C.     Not having a business account for a limited company is a clear breach of T&C.   Limited companies are separate legal entities to the individual.  

It is also a breach for a self-employed individual but they usually turn a blind eye to it if there are not cash transactions going through or heavy volumes of transaction.  Also, a self-employed person is not a separate legal entity to the business.  Personal & business assets are not considered separate.   As such, a lot of self-employed people will use a personal account for business.  So, there is an option covering that.

There is no point creating an option in the list to cater for the odd plonker who is running a limited company out of a personal account.

Jeremy535897

Agreed, but I would also repeat that HSBC cannot use an individual's personal or business account with HSBC to put funds in that are lent to a limited company. It would be like me asking for a bounce back loan and HSBC paying it into your account.