Business bounce back loan

ausryte2005

Hi. I have an issue and nobody seems able to help. Me and my partner we have couple of businesses but we bank with Tide. They currently been approved to lend these loans but after first batch they already run out of money. We are now on waiting list until they find more money. Hsbc offering feeder accounts in order to apply for business bounce back loan. But we just got emails confirming we failed credit checks to open feeder account so obviously can’t get Loan without this account. The reason we failed credit checks because in the last 3-4 months we had number of late payments etc due to covid 19 impact. Please advise we are desperate for this loan in order to save the business 

Jeremy535897

If you have applications with TIDE, you cannot apply elsewhere. Have you applied, or is the "waiting list" pre-application?

[Deleted User]

You are in a potentially difficult position, but are limited as to what you can do due to circumstances. Tide is a wait and see situation now unfortunately, they are not sure when they will get more money to lend from investors and indeed investors are not really keen on them using that money to lend under the BBLS, so it may be a longer wait.

Are your businesses sold traders or limited companies? Do you only bank with Tide and is the account with Tide a business account? What kind of debts are they and how do they show (eg a CCJ would normally be an issue, but courts have not issued them since the Covid-19 issues started)? What do you intend to do with the loan if you do succeed in getting one?

HSBC, just as all banks are allowed to do so, are refusing to open either business banking or feeder accounts for companies that they deem a financial liability, you could apply with other banks, but you will have to try and open a proper business account first, not just a feeder account, you may be accepted, you may not be.

Other things you could do would be to look at the rest of your finances, have you taken mortgage payment holidays, payment holidays on other debts if you have them etc. Have you claimed either the SEISS grant if self employed, or CJRS if you are PAYE of your own limited company? Have you looked to see if you are entitled to any benefits? Depending on what you plan to do with the money you could apply for a personal loan and use those funds.