HSBC Bounce Back Loans

Danrover82

Do hsbc work bank Holidays? Wondering if possible to get some answers today

dunstonh

Danrover82 said:

Do hsbc work bank Holidays? Wondering if possible to get some answers today

Just remind me what the day is known as

gwc1

clues in the name 😉

Danrover82

Ha ha aha.  Very funny. They are so clearly not in the name 😉

liammaw

Jeremy535897 said:

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.

This option is not for Sole Traders, that is stated in option 2 where it asks for you to provide a SA for proof which isn't asked for in the 3rd option.  The option I have selected is for those who are already have a personal account but do not have a business account with HSBC, this option is to help with identification checks of the individuals as Director of the company.  As its states in the question text "you will need to discuss becoming a business customer with us".  Further to this HSBC actually advised me to undertake this route when I spoke to them directly, and cancelled an existing feeder account application as they assured me this was correct.  2 weeks later on they have now done a U-turn on this and are referring back to the feeder account as the correct route.  I think either the internal guidance that's been drawn up is constantly changing and causing confusion to those in HSBC or some of the staff on the phone just don't understand what the process should be or received very little training.

liammaw

dunstonh said:

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.

I'm not applying for a loan under a personal account for the business.  Please read the options, option 2 is for Sole Traders option 3 is for those who already have a personal account but do not use HSBC for their business banking as stated in the text on the option where it says "you will need to discuss becoming verified as a business customer".  As previously stated this route was the advice given to me from HSBC and the reason for this option was to help in speeding up identification checks for those who are Directors or similar in Limited Companies that are applying on behalf of the company for the loan.  I would not expect my personal account to get funded with a loan that is for my limited business, this is then done via the feeder or a new HSBC business account. 

Jeremy535897

No. Option 3 is clearly for sole traders (no mention of limited company, 5 April mentioned, limited companies can only be business customers by definition). It's for sole traders who started trading since 5 April 2019 so can't provide a self assessment return for 2018/19. I suspect that they rushed it all and didn't realise you were talking about a limited company. Your comments about training are most likely to be correct. I just didn't agree there was evidence of deliberate stalling tactics as you suggested originally.