No bank account and cant open one so no BBL?

danielle_128

Looking for some ideas for the following situation:
I registered my ltd company on the 14th February 2020. I have been unemployed and setting up the new company since last year around October.
I was about to open a bank account when the lock down was announced.
Ive spoken to all the banks just recently to try and open an account for the ltd company. No Joy - because credit scoring is done on the business and the individual and I have a default on my personal credit file.
I would dearly love to be able to apply for that BBL so that I can pay off existing debt and get a 12 month break whilst I continue finding business.
One way or the other I seem to fall outside of the rules. The company officially started trading when I registered with companies house which was what I put on the form. But I cant seem to open an account anywhere nor apply for the BBL
Is there a way to complain or have this looked at by British Business Bank? 

Grumpy_chap

Company started 14th February.  Lockdown 23rd March.  That is over a month that you could have got a bank account.

[Deleted User]

It’s always a good idea that when a company starts trading they open a business account too at the same time. 

Jonesy1977

Why do you need a bounce back loan? Your business has never traded, what are you bouncing back from?

bazzyb

Where did you bank your income from your trading from 14th February until lockdown?

danielle_128

thanks for the help

jfinnie

danielle_128 said:

Looking for some ideas for the following situation:
I registered my ltd company on the 14th February 2020. I have been unemployed and setting up the new company since last year around October.
I was about to open a bank account when the lock down was announced.
Ive spoken to all the banks just recently to try and open an account for the ltd company. No Joy - because credit scoring is done on the business and the individual and I have a default on my personal credit file.
I would dearly love to be able to apply for that BBL so that I can pay off existing debt and get a 12 month break whilst I continue finding business.

You should note that as a Ltd co, the BBL is provided to the company, and not to you personally.  It can only be used to pay for stuff that brings some benefit to the business and not for personal debt (you're not clear if these debts are debts belonging to the business or not).

While if successful you'd have access to the cash, you likely won't legally be able to pay it as dividend if you couldn't pay dividends now, as it is a loan it doesn't add to business profits.  You could use it to carry on paying salary at a level you were (but paying increased salary is almost certainly frowned upon, and likely bad from tax point of view) and I think there are tax issues too if you did a significant director's loan (plus you'd personally have to pay it back to the business).

For what it is worth I think appealing to the BBB is going to be a waste of time and energy.  Like all these measures they're not designed to help 100% of businesses, and I'm sure businesses that weren't in possession of bank accounts is probably one category they were quite happy to see slip between the cracks.

danielle_128

If you have been unable to access a bounce back loan please register here stating which bank and for what reason. Stay in touch this post in meant to help people complain as the banks are acting unlawfully.

I have been unable to access a bounce back loan as I do not have a bank account with one of the approved lenders. I was using my transferwise account as a temporary measure because it was an independent account which I was not using for any other purpose. The company was incorporated and started trading on the 14th February. I had six good prospects at that time which I had built up during setting up the business from September the previous year. I have had one sale  prior to lockdown. 

Anyway long story short here I am in a dead economy all original prospects dried up, finding it harder to find potential customers and cash is now starting to run dry. Id like to join networking groups but cant even do that. The government destroyed the economy which doesnt help a start up business.

The Bounce back loan is state aid and there arent supposed to be affordability checks. Its meant to beb quick to get money through the system. Its not just the people applying for the cash its the busineses we purchase from who beneift.

If you have been unable to get a bounce back loan please register your case on this thread.
I will be starting complaints processes today against all of the banks as I believe they are not administering the BBL in accordance with the governments rules - ie not credit scoring etc etc
As far as I can see all of the banks are acting to ensure they keep the money in their vaults.
This thread is intended to record actions and succeses taken by people who have been refused BBL

Jonesy1977

Your previous thread shows that you do not have a valid case.  You stated that you wish to use the BBL scheme to pay off debt and take a 12 month capital and interest break to build your business.  You state that you registered your business on 14th February yet had no bank account, and you have not traded. The BBL and CBILS schemes are designed to save legitimate enterprises and jobs, your idea of using the scheme to fund your set up, pay off your debts is a non starter and  I am sorry if this sounds harsh but you are wasting your time and energy, perhaps you should focus your efforts on finding an alternative source of income.  

danielle_128

As far as I can see, what has happened here is this:

The banks have taken billions from tax payers and are doing their best to hold on to that money. The scheme was intended to help those whose business has been affected by coronavirus.
There is a strong case for people to complain - Id suggest speaking with all of the banks and recording or getting communications in writing before proceeding to complain.
If you are being refused a BBL because you are unable to open an accoun then that bank is trying to hold on to tax payers money which is intended to help businesses affected by coronavirus.
Please read the below:

In particular, the FCA said there was no requirement in BBLS for lenders to conduct creditworthiness or affordability checks, contrary to the FCA’s normal rules on creditworthiness assessments for regulated credit agreements.

The FCA said it understood the FOS would take into account the schemes’ requirements when handling any complaints, and asked the ombudsman to acknowledge that the schemes require lenders to take a different approach to lending. In its reply (1 page / 169KB PDF), the FOS made the required confirmation.

Separately, the Lending Standards Board (LSB) issued an update on how its Standards of Lending Practice for business customers give effect to the requirements of the BBLS.

jon81uk

danielle_128 said:

As far as I can see, what has happened here is this:

The banks have taken billions from tax payers and are doing their best to hold on to that money. The scheme was intended to help those whose business has been affected by coronavirus.
There is a strong case for people to complain - Id suggest speaking with all of the banks and recording or getting communications in writing before proceeding to complain.
If you are being refused a BBL because you are unable to open an accoun then that bank is trying to hold on to tax payers money which is intended to help businesses affected by coronavirus.
Please read the below:

In particular, the FCA said there was no requirement in BBLS for lenders to conduct creditworthiness or affordability checks, contrary to the FCA’s normal rules on creditworthiness assessments for regulated credit agreements.

The FCA said it understood the FOS would take into account the schemes’ requirements when handling any complaints, and asked the ombudsman to acknowledge that the schemes require lenders to take a different approach to lending. In its reply (1 page / 169KB PDF), the FOS made the required confirmation.

Separately, the Lending Standards Board (LSB) issued an update on how its Standards of Lending Practice for business customers give effect to the requirements of the BBLS.

If you were trading before lockdown then you should already have a bank account? Surely the clue for the bounce-back loan is that they are there to loan money to existing businesses to bounceback and get going again. Therefore you need an existing business to bounce back to?