BBL - settle and re-apply

Cind4r411a

Hello

I have a Lloyds business account for my limited company and received a BBL almost straight away. In hindsight, I applied for too low an amount. Does anybody know whether I can settle the first loan and reapply for that which is actually 25% of my turnover rather than the less than 8% I originally applied for?

[Deleted User]

From everything I have seen, no you can not. 

Jeremy535897

Cind4r411a said:

Hello

I have a Lloyds business account for my limited company and received a BBL almost straight away. In hindsight, I applied for too low an amount. Does anybody know whether I can settle the first loan and reapply for that which is actually 25% of my turnover rather than the less than 8% I originally applied for?

Only one loan is allowed. Even if you pay one loan off you cannot apply for another..

Grumpy_chap

If you did not know how to work out 25% of your turnover and did not have an advisor to give you this information, I don't know how you can manage to run a business.

Dullville

Grumpy_chap said:

If you did not know how to work out 25% of your turnover and did not have an advisor to give you this information, I don't know how you can manage to run a business.

😂😂😂😂

mobilejo

Grumpy_chap said:

If you did not know how to work out 25% of your turnover and did not have an advisor to give you this information, I don't know how you can manage to run a business.

That might be unfair - some people were cautious of over-borrowing initally (rightly so, generally) and asked for what they thought they needed rather than the max.

Many have now seen (1) that they might need/could use more and (2) there is no real concern with over borrowing with the BBL because its interest free for the first year and low interest thereafter. The best strategy would always be to borrow the max, and repay what isn't required.

But alas, once its done, its done - there is no second loan unfortunately for the OP.

Cind4r411a

Grumpy_chap said:

If you did not know how to work out 25% of your turnover and did not have an advisor to give you this information, I don't know how you can manage to run a business.

Really???  How stupid are YOU to even think this was a case of not knowing how to work out 25%!  What an asinine comment. 

Grumpy_chap

You would be surprised judging by the threads on here. 

There was one only this week where the OP started by saying " my turnover is between £90 - £100k, if I apply for the £50k bounce back loan will I be able to..."

Another thread this week was from an OP upset that they had claimed a£45k bounce back loan and now had their accounts locked and a fraud investigation because they should have claimed a maximum less than £25k.

At the beginning of the BBLS scheme, there were many OPs asking about their brand new business started 28th February and no bank account yet, but how do they get £50k as their forecast turnover is exactly £200k.  One such also posted later that they applied but then got the accounts locked and a fraud investigation.

I am glad that @Cind4r411a is more capable than these other posters, but we cannot assume anything based on the level of people proven by threads on here.
I did not mean to offend.  Unfortunately, the answer to your question is that the business can only apply for one bounce back loan.  It's not possible to increase the value after receipt.

macman

One quirk of the BBL is that it's based on calendar year turnover, 2019. So most people would have to manually split and splice their turnover figures from across 2 tax years.
I can see why HMRC did this, rather than base it on 2018/19 tax year t/o, in order to allow newer businesses who started up after during 2019 to qualify, but it does make the calculation a bit more elongated.