HSBC BBL refusal

victoriats

Hi, I applied for a HSBC BBL and have been refused due to being a start up. This is how it read; "Unfortunately, as you’ve confirmed you’re unable to provide the necessary documentation in the form of your 2018/2019 self-assessment tax return, we’re unable to progress your application as you don’t meet the eligibility criteria to apply for a BBL (in accordance with the scheme rules)."
I was under the impression that not having 2018/19 tax records did not make me ineligible. I am a HSBC customer don't have a business account. I have tried calling them and been on hold for 3 hours in total! I was refused last week on Thursday 2nd July via email. What can I do? Thanks Victoria

Jeremy535897

A lot of people who started their business after 5 April 2019, and who don't have a business bank account, come up against this. The banks are looking for evidence that you run a business, as only businesses are eligible. You could try asking them whether filing a 2019/20 self assessment return that shows you have a business that started before 1 March 2020 would be acceptable (as long as you can do this). Alternatively, if you are VAT registered you could ask whether sight of the VAT registration would be acceptable. 

victoriats

I have filed this tax return for 2019/20 when they asked, I am wondering if they are aware of their own criteria. I will keep on at them. Thanks, it is useful to know I am on the right track.

Jeremy535897

HSBC's website under BBL Next Steps says:

"Please ensure you have read the information on this page, which covers key product information and frequently asked questions.

You can apply quickly through our online portal if:

• You either:
  • Already have a Business, Charity or Community Account with HSBC UK, or
  • You are operating as a Sole Trader and you have an existing HSBC UK or First Direct current account and your business started on or before 5th April 2019
• You want to use that existing HSBC account to draw down the loan
• You have checked the email address and telephone number on your application match the records held by the bank. If they do not match, then please update your records via Internet Banking or Telephone Banking as any variations may cause your application to be delayed
• You have also ensured that the relevant sort code and account number is entered on your application. So, for example if you have both a personal and business account, you should enter your business account details.

Apply for Bounce Back Loan

If you do not meet the criteria to apply via our online portal:

In order for you to receive an HSBC Bounce Back Loan, you first need to open a bank account with us so that you can draw down the loan proceeds. At present you cannot draw down an HSBC Bounce Back Loan directly into a non-HSBC account.

This new account can be either:

A full HSBC UK Business Bank Account

• You’ll have access to all the features our Business Bank Account offers.

Apply for Business Bank Account

A temporary HSBC UK Feeder Account

• This account will be used just to draw down the funds from the Bounce Back Loan which will then transfer to your existing bank account.
• You won’t be able to use this account for your day-to-day banking or to make loan repayments.
• We won’t charge you for this account.  

Apply for Bounce Back Loan Feeder Account

Once your account has been opened, please use your new Business Bank Account or Feeder Account number to apply for the Bounce Back Loan Scheme."

I suggest you follow the instructions set out, but the opening of a feeder account will be subject to credit checks.

victoriats

Hi, I have been reflecting and in the tax year 2018/2019 I used the Trading Allowance with my business because I did not earn more than £1000.00. Do I need to prove this for a bounce back loan?

Jeremy535897

victoriats said:

Hi, I have been reflecting and in the tax year 2018/2019 I used the Trading Allowance with my business because I did not earn more than £1000.00. Do I need to prove this for a bounce back loan?

If you didn't file a 2018/19 self assessment return, I don't think it helps. A filed self assessment return showing self employment income is evidence of a business. If you filed one, with self employment pages showing you used the trading allowance, I assume you would have already sent it.

victoriats

Yes. I have appealed via the HSBC website because I cannot get through on the phone to them.

timlazisa

LOL..... I think HSBC is a complete cluster f**k. I have had a limited company since December 2019. according to the .GOV I can apply but when I did they refused me a feeder account because of my credit history. I was of the understanding that .GOV was backing these loans no matter what? The idea being to get businesses rocking and rolling and get the economy back up and running. My personal feeling is, judging my the chencelots words the other day that they will let a good number of businesses go to the wall and then deal with the fallout at a later date. I think they will be putting money in each and every one of our accounts directly before Christmas. 

mattyprice4004

timlazisa said:

LOL..... I think HSBC is a complete cluster f**k. I have had a limited company since December 2019. according to the .GOV I can apply but when I did they refused me a feeder account because of my credit history. I was of the understanding that .GOV was backing these loans no matter what? The idea being to get businesses rocking and rolling and get the economy back up and running. My personal feeling is, judging my the chencelots words the other day that they will let a good number of businesses go to the wall and then deal with the fallout at a later date. I think they will be putting money in each and every one of our accounts directly before Christmas. 

The Gov is backing the loan itself, but if HSBC don't deem you eligible for an account (even a feeder account) then there's not much you can do.