Bounce Back Loan Advice Please

LivingTheDreamNot

Hello Everyone
I am hoping someone can offer some advice or at least put my mind at rest or rather my wifes mind, she is self employed, she runs a small service based business, it is busier in Summer than Winter, no employees this year due to the virus more than anything, turnover last year of 20k so she is hoping to take a BBL for around 5k the maximum 25% she can apply for, this is to be invested back into her business with a complete new service she wants to offer based around the virus, moving with the times I suppose.
Few issues though, this is just a small self employed business, always operated totally above board tax return and accounts wise so all of that stacks up fine, all properly registered with the government etc, never owed government any money, never late on returns or any of her responsibilities so on paper at least she fits the criteria set by government perfectly and there should be no issues in her securing a loan.

She has not applied yet you see she does not have a sole trader account, she has never had a need to run a separate business account and has always run everything through her personal account so the first challenge is a business account, next problem, yes I know it is 2020 lol but she has no ID at all, no passport, does not drive so the only thing we could do is apply for her provisional driving license to use as ID, which we did, weeks and weeks and weeks ago, finally had notification from them that it is on the way so now trying to figure out her best and easiest route to secure this loan.

I personally bank with Starling and as they will accept a provisional driving license as ID Starling seems like the logical option however after looking this morning Starling now seem like the ONLY option! And even then they are now saying they have tightened the application process, am I missing something here? These loans come with a cast iron guarantor, how can they be so picky if you meet the criteria set by government? How can all these banks all of a sudden stop offering these loans when the deadline is not until 30th November? Why is no noise being made about this? There must still be thousands of businesses out there who have resisted taking a loan until it is absolutely needed, what the heck is going on with these damned banks??

Bit of a rant, apologies, I am really looking for some reassurance, my wife has not "banked" on getting this money as we could see from the beginning the way it was rolled out was errrrr clumsy to say the least but getting this money would enable her to continue trading next year hopefully stronger and better, all of a sudden I am a bit concerned and wondering why the government are not ensuring this vital resource is being handed out properly.

Thanks for taking the time reading this and any advice or wisdom anyone has is appreciated

Thrugelmir

LivingTheDreamNot said:

 How can all these banks all of a sudden stop offering these loans when the deadline is not until 30th November? 

To allow time to process the backlog of applications they have in hand. Resources are finite. 

LivingTheDreamNot

Thrugelmir said:

LivingTheDreamNot said:

 How can all these banks all of a sudden stop offering these loans when the deadline is not until 30th November? 

To allow time to process the backlog of applications they have in hand. Resources are finite. 

Fair point but we are still 6 weeks away, looking at the BBL article on the main MSE site literally the ONLY bank right now taking new applications from brand new customers is Starling and they have now decided to run their own waiting list, really not sure how we can have a vital source of funding 6 weeks from closing date and essentially no bank will take your application? The scheme is as good as over now surely?

Jeremy535897

I am afraid that while a BBL may be available to a borrower without credit checks, if the borrower has no business bank account with the proposed lending bank, they will go through all the normal checks before opening a new business bank account. I fear she has very little chance indeed of getting a BBL.

LivingTheDreamNot

Jeremy535897 said:

I am afraid that while a BBL may be available to a borrower without credit checks, if the borrower has no business bank account with the proposed lending bank, they will go through all the normal checks before opening a new business bank account. I fear she has very little chance indeed of getting a BBL.

I fear the same to be honest, she should be OK actually getting the business account, nothing negative on her credit file but then not lots positive either, neither of us ever bother with credit as such, I know that is equally as damaging as having lots though. Not envisaging a problem actually getting the account, will find out should the postman arrive today lol

My point is though, the scheme is effectively dead if next to no banks are actually taking and processing applications yet nobody anywhere seems to be saying anything about that? 

MattMattMattUK

LivingTheDreamNot said:

My point is though, the scheme is effectively dead if next to no banks are actually taking and processing applications yet nobody anywhere seems to be saying anything about that? 

Some are taking applications from existing customers, just not new ones, the backlog that accumulated at HSBC for example trying to deal with all the new applications was huge, the banks have processed more applications for new business accounts and loans in six months than they would normally process in over two years. They have faced an increase in workload of 4-5 times whilst also having most staff working from home and huge disruption to their existing systems so I think that they want to make sure any applications they do accept they can process in time. 

I also think it will be worth your wife applying for a passport as well, you mention saving for a house and you will have no end of problems trying to complete the legal paperwork without one (they will not accept a provisional driving license at all). It would be wise if you have the time to gain a passport and if you have the time with lockdown, you could always have a bit of fun and teach her to drive so she has a full driving license as well. 

superbigal

Expect when you apply for a 1st passport as an adultto be invited to for interview.  

dunstonh

 so the only thing we could do is apply for her provisional driving license to use as ID

Most banks will not accept a provisional driving licence.

How can all these banks all of a sudden stop offering these loans when the deadline is not until 30th November? 

They are not.  Right from the start, they have focused on existing business account customers as a priority.  Then personal account customers breaching their T&C to use it for business and lastly new customers.    

Logically, there has to be cut off points put in place and they need to cater for the lowest common denominator plus a margin of error.   No bank wants complaints coming in saying they missed the deadline because of admin delays.  So, better to put in an earlier deadline for new accounts or just don't open new accounts at all.

There must still be thousands of businesses out there who have resisted taking a loan until it is absolutely needed, what the heck is going on with these damned banks??

The banks are just taking logical business decisions. 

my wife has not "banked" on getting this money as we could see from the beginning the way it was rolled out was errrrr clumsy to say the least 

It was certainly rushed but it needed to be.   However, the BBL is one of the better handled things.   The only people really having problems are those that did not operate a business banking account.

My point is though, the scheme is effectively dead if next to no banks are actually taking and processing applications yet nobody anywhere seems to be saying anything about that? 

They are taking applications and processing them.  They are just focusing on their own customers as a priority and most don't have the resources to handle non-customers.   Certain banks handled the BBL badly.  A quick read of this forum over the many months BBLs have been available would suggest Lloyds were one of the best but HSBC and Santander suffered issues.

And with my devils advocate hat on, you do have to question why your wife has left it so close to the deadline when it was obvious from day one that it would take longer for a non-customer to get the finance.  Its easy to blame the banks but she needs to take blame for this too.  No business account to begin with despite operating a business and then leaving it to last minute during a period of low capacity.

warby68

No ID, no business bank account.
You can't really blame the banks too much.
Its a common misunderstanding that these loans are a government handout available to all. They are still a bank supplied product and how they are rolled out and to who involved commercial decision making. 
Think about it, what other business would welcome customers from here, there and everywhere all at the same time wanting nothing but the 'free gift' to the detriment of existing customers or ones who may have more to offer in an ongoing relationship.  Its still business although I understand why its got a bit blurred. It would be like those 2 good 2 be true free flights and hoover fiascos from years ago.
PS ID would be a worthwhile investment - how does she obtain clients without ID? Do they just let her in or take her at face value? I know its a side issue, but am curious and it might come up for a new venture.