Bounce Back Loan - Established business - Poor Credit

123thfc123

Hi,

Im looking for advice, I currently bank with Tide (who have been accredited for BBL - but there is a lot of problems with their delivery in terms of who they are pre selecting etc). My business has been going for last 3 years, each year turnover has been in excess of £200,000 with a net profit in each of the last 3 years of approx £20,000 (Have HMRC returns as proof). However my own personal credit rating is very poor, I have no ccjs etc but 3 years ago just before my new business started I had a lot of missed payments, debts etc which I am still repaying - so my credit is still poor (I used experian for rating). So I have been trying to open up a new bank account, feeder account with HSBC (rejected), Metro (rejected) - I have an appointment with Barclays but I feel it will go the same way. Have I any other option? I feel I will miss out, yet other 'start ups' who predict their turnover are getting access to the loan, when a proven (by proven I mean 3 years of £200k+ turnover and constant net profit) is going to miss out. There will be credit checking opening accounts - however BBL isnt credit checked - Is there anything I can do - or am I just incredibly unlucky?

gizmo111

Think you would be best going on the Tide waiting list for the BBL as you bank with them.  There should be no personal credit checks the loan is basically self-certified.  Assume you are a Ltd Co?

Jeremy535897

You should start with your own bank as they are accredited:
"In the first instance, businesses, where possible, should approach their own Bounce Back Loan Scheme accredited provider. They may also consider approaching other Scheme accredited providers if they are unable to access the finance they need or if their existing provider is not accredited to provide loans under the Scheme."

You can only have one application at a time:
"The business (and any wider group of which it is part) is not already in the process of applying for or has not already received a Bounce Back Loan Scheme facility."

See https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-schemes/bounce-back-loans/faqs-for-small-businesses/

123thfc123

Hi - yes I am currently waiting for Tide to offer me the chance to apply - there is currently a waiting list - and there is been speculation that they dont have the 'funds' to lend and so are cherry picking businesses. Yes I am a ltd. company.

[Deleted User]

123thfc123 said:

Hi - yes I am currently waiting for Tide to offer me the chance to apply - there is currently a waiting list - and there is been speculation that they dont have the 'funds' to lend and so are cherry picking businesses. Yes I am a ltd. company.

The situation then is that "You" are not a limited company, you as an individual has a poor credit rating, the company is a separate legal entity so it should be manageable, but I would suggest not trying to open any more bank accounts for a while as being declined does not look great. Unless you need the funds in a huge rush I would suggest waiting for a while to see if they start offering through your current bank and also because the banks that do offer them at the moment are currently overloaded, so they tend to have little flexibility, that should hopefully improve once things calm down a little.

Can I just check, is the account you hold with Tide a personal account or a business account?

123thfc123

The account I hold with Tide is a business accouny.

[Deleted User]

123thfc123 said:

The account I hold with Tide is a business accouny.

That's good then, there have been some people on here running limited companies using personal accounts which is a huge no. I think if you can wait for Tide to start offering the bounce back loans that is your best course of action, if not by then hopefully the others will be in a position to help and with the added benefit of time your personal credit record will also improve. 

When you look at your credit record are you merely repaying debts on time, or are they showing as in arrears? If they they are just showing a debt repayment that will have far less impact than if they are showing as in arrears? 

BILLBO63

i have been refused my bounce back loan from HSBC 8 weeks lots of calls to them then finally my feeder account app came through filled in and within seconds refused   we have revived but you have been unsuccessful i dont have a business account  just personal account  i thought that credit scoring was not applicable  any help the main banks just want you yo open an account but even they get refused thus impacting your credit score i bank with Halifax part of RBS  any body had bounce back loan from them 

abc_12345

i was about to try opening with Metro and based on your feedback I wouldn't be doing it. I just tried to open a TSB account online and awaiting. in case if that turns out to be positive, will let you know as I have a poor score as well and exactly the same position