Bounce back loans

marcun78

Ok I have a Ltd Company it’s still in start up period (just reached 12 months) I personally have CCJS on credit file which I was under the impression wasn’t an issue as the loans were not going to be credit rated as it’s 100% government backed. The problem comes as all but one or two want an account opening FIRST. I’ve done it with HSBC for a feeder account (an account JUST to draw the money to then send it out to my current business account in one transfer. My business account company is not one of the accredited lenders so I had to use others HSBC have credit checked and denied me the feeder account wasted 3 weeks or time as I would have told them I’d have failed a personal check.
this is a pandemic and am I not entitled to help the same as all others ? Furloughed people 80% wages Government paid. Self employed .. not 1 but now a 2nd FREE GRANT. 

I‘be lost 3 months turnover (approx £15000) no personal wages either for that time, only to be told it’s no use u can’t even have a feeder account to use to get at ur none credit checked government help loan ! 

What do I do now ??? 

macman

So you don't qualify for SEISS as you were not trading, or submitted a tax return, in the tax year 2018/19?
Are you eligible for Universal Credit?

cbruin

I think the BBLS is fast becoming a farce, I smell that banks aren't interested in processing these at any speed and ignoring the governments schema eligibility criteria and from day 1 they use caveats to navigate around doing it. Rather distasteful to be honest.
You could always try another bank, one of the online challengers who you can have an account with, and then reapply for the BBLS. The catch you out was you getting an account (as that criteria isn't in scope of the governments criteria), thats how the banks are getting away with not offering them, its a loop hole thats terrible on behalf of the banks.
If that’s  doesn't work, Universal Credit is your best best, but reading what you put down you should be eligible. Though sorry to poor doubt on the others, I've been waiting for 5 weeks for HSBC to get back to me, 3 weeks from Starling and 2 weeks from Tide.... zero transparency, zero helpfulness, shocking system that I wish we as the people never bailed out.

jonesMUFCforever

Have you ever thought that the banks might be short staffed?

cbruin

jonesMUFCforever said:

Have you ever thought that the banks might be short staffed?

I do believe the sheer overwhelming impacts were significant, logically that demand would have been up to 100 time more than usual... BUT as most of these banks run solutions that automate a large percent of the leg work and allow variable rates, criteria's to be set, means manual touch time is limited, and even with the increased demand, should have been handled vastly better than the silly wait times (thats why a need for transparency is greater than ever). I suspect, but could be wrong, that these as financial products offer little value back to the bank; low APR fixed over the lifetime, no repayments for 1 year, etc... its not the risk that their not interested in, thats backed by the government, its that they don't make the usual margins (having worked for a number of finance houses, I'd not yet put my house on it but I'm not far off, its one of the major factors in not wanting to push these through at speed; in the banks models this isn't worth it). The other is that the strain of defaulting loans is a worry (as banks are hyper risk adverse) as it's an untried product. In short, yes I believe the banks are short staffed, but for some people to be waiting 5 weeks since launch, their not that busy. When a government can roll out numerous schemes for the public, and deliver them, it's hard to have sympathy for the banks.

Also tying the BBLS to their existing products (accounts of various types) is slightly opportunistic (though I understand why it improves the speed as they are a known customer, and those checks are part of the process, not the credit check this poor person went through, but the get out of jail card is the existing product needed to apply for a BBLS is a bank account, hence they can catch out some... no really flying straight... a classic loop hole).

Sympathy for 2-3 weeks, no problem, 5+ weeks, less so, bending the rules and applying stealth criteria.... yeah, morally not really right.

AlfaVan

jonesMUFCforever said:

Have you ever thought that the banks might be short staffed?

That was our experience, had to wait few days for a reply from our bank.

Grumpy_chap

The OP can furlough themselves from the Ltd Co.
Also tax payment deferrals.
Maybe premises-related grant.
Mortgage / loan holiday

Over 3/4 million bounce back loans have been paid, so it is not fair to call the system a farce.
https://forums.moneysavingexpert.com/discussion/6154599/bounce-back-loan-stats#latest

marcun78

I have since looked at the furlough scheme, but agai NBC not trading long enough to require an accountant I didn’t have PAYE in place before 19th March looks like that’s out too. 

As for UC, I don’t think £400 a month is anywhere close to what someone furloughed on minimum wage would have gotten that’s not a government replacing my loss of earnings I have never claimed anything since I was 17 an that was only to cover stamp until I went in the Army a few weeks later I’m now 42, served the country, started my own business which for the back half of 2019 was thriving, now despite many others having been helped from day 1 here I am 3 months in survived on what I had left sold my vehicle to survive then come to ask for the help that is so called in place to help EVERYONE, an somehow im going to slip through the cracks because of circumstance! I was fine never asked anyone for anything happy to work my way through life and now even that’s been smashed to bits by a farcical shambles of decisions from the silver spoons who have likely PROFITED. 

Thanks For the suggestions. 

Grumpy_chap

You say your Ltd Co is now a year old but you never set up PAYE.  How have you paid yourself over the year?

No business is too young to need an Accountant.  Indeed, it is wise to engage the advice of an Accountant prior to, or at, incorporation.

Keep persevering for BBLS.

Business start up loan may be another option, but less competitive than BBLS.