Refused bounce back loan because of credit rating

Lynsey919

I have been with Barclays for around 15 years.  I only have a personal account but use this for my business as well.  I was told this was perfectly acceptable and many people do the same.

I applied for the bounce back loan and was told I had to open a business account with them.  I gave them all the details and eventually weeks later was told I couldn't open a business account.  They would not give a reason but they said I could apply for a bbl without a business account.

Today, after months of phoning, emailing, going into a branch (my branch is closed) I have been told I cannot get the loan.  They won't give me the exact reason but hinted that it was due to poor credit rating.

Apart from the fact I thought credit rating did not affect eligibility for the loan there are valid reasons why my rating is low.  I had a stroke and was unable to work for quite a while.  With very little money coming in I struggled to pay bills etc. 

For the last 2 years though I have been working again and my credit rating is gradually going up.  Also I had a personal loan with the bank for £10,000 which I have always paid and the last payment was made last month.  

Grumpy_chap

I imagine the bank simply look at you using a personal account for business use (depriving the bank of their fees) for the past 15 years, which is against the terms & conditions of the personal account and see that as a reason to be cautious.  It may also be that, without the business account having been pre-existing, Barclays may have no way to establish that your business was trading before March.

EDIT:  You could try asking that as you only broke the rules in a "specific and limited way" could they ignore that?

Jeremy535897

Credit checks are not performed for a BBL, but the banks have decided you need a business bank account with them to get a BBL. If you don't have one, then opening a business account, or a feeder account, will result in a credit check. When you fail that, you can't have a business account or feeder account, so cannot have a BBL. There is absolutely no sense to this, but that is the way it is.

Lynsey919

I was told that it was ok to use a personal account for business and that many people do so.  I guess they don't like the fact that they have lost their fees for a business account for the last 15 years.

I provided them with copies of my tax returns for the last couple of years and, if necessary, could provide them for every year I have been self employed.

I guess I have to accept I will not get any help but not impressed with Barclays at all.  Fair enough if they turn me down but it has taken them months to tell me I am not entitled to it

dunstonh

I have been with Barclays for around 15 years.  I only have a personal 
account but use this for my business as well.  I was told this was 
perfectly acceptable and many people do the same.

Actually, it is a breach of the bank's T&C.   However, it is a breach that historically they have turned a blind eye to as long as you were not using banking facilities or the dealing in cash over the counter.

I applied for the bounce back loan and was told I had to open a business account with them.  I gave them all the details and eventually weeks later was told I couldn't open a business account.  They would not give a reason but they said I could apply for a bbl without a business account.

A number of the banks did stop openidng new accounts during lockdown and have only recently started back up again.

Apart from the fact I thought credit rating did not affect eligibility for the loan there are valid reasons why my rating is low.  I had a stroke and was unable to work for quite a while.  With very little money coming in I struggled to pay bills etc.

The BBLs are not credit scored but the individual can be if there is no business bank account.  If you fail to meet their account criteria, they will refuse the BBL as well.