Bounce Back Loans

Bighen10

I am considering changing my business bank provider, I have a bounce back loan with my existing business bank - will I have to pay that back before changing banks??

SpreadableToast

You won't have to pay it back but the loan might be linked the current account which may prevent you from closing it.  Phone them and ask them would be my advice.

jonesMUFCforever

You would need to ask your BBL provider.
I commented on a recent thread regarding loans with Coop bank that in their terms they could ask for the loan to be repaid at any time - what that means in practise who knows? Be careful - could you not operate two business accounts?

moatfarm

I’m about to apply for the Bounce Back Loan as a sole trader. Does anyone know if this loan will affect me when I apply for a mortgage in a couple of years time? Is it better to change to a Ltd Company before I apply for the loan, to avoid any possible difficulties in future mortgage applications? Any help is much appreciated.

Grumpy_chap

It is not straight forward to swap from sole trader to Ltd Co in the context of BBLS.  The new Ltd Co needed to be trading before 1st March.  Change of business legal entity will complicate that.

bring_back_force

I bank with HSBC Business Banking and was accepted for a BBL in May. At the time I took a loan for £10k. I find myself needing to top this up a further £15k for cash flow purposes but have been told by HSBC that a BBL is a one time only loan and cannot be topped up. Under the current T&C's you cannot apply for a new BBL either. Given recent announcements by the Chancellor to extend the BBLS to help Small Businesses through a second Covid wave I have no further help or access to a Govt Guaranteed Loan. Assuming I had applied initially for £25k then this would have seen me through for the moment but it is unfair that Businesses can't have a second bite at the cherry even if the aggregated loans don't exceed £50k. I am after half that.
Anyone experiencing the same problem?

(I also fall through the net with SEISS as I chose not to take dividends while the business grows but minimum PAYE and took some money out of a pension in Drawdown which exceeded the 50% source of income allowance. I am not even 60 yet and paying for Covid with a small private pension)

Grumpy_chap

If you took dividends (or not) then you must be operating as Ltd Co and would not, therefore, be eligible for SEISS but may have taken the option to furlough yourself.

What was the 2019 turnover?

petergst

hey, can someone help me, please...
I am about to apply for Bounce Back Loan as a self-employed,
is there any chance to take more than 20% of the turnover? maybe some tips on how to do it, please. it would be very helpful
thank you