Will a BBL affect my ability to get a business loan for separate compqny

SMRX

Hi everyone,
I hope you're all staying safe. 
I just wanted to get some advice/clarification on whether I would be able to take out a simple a business loan for a separate company (not in existence yet) even though I have received a bounce back loan for one of my companies.

jonesMUFCforever

It depends - banks will not finance your new company/business without you putting in a substantial amount yourself and probably they will want security.

Grumpy_chap

The ability to borrow is dependent upon the borrower's financial capacity. 

When the borrower is a Ltd Co, then Director guarantees are often required and it is the Director's financial capacity that is assessed.  This uses past income data for the individual and the Ltd Co.  By having taken the BBLS, that is a declaration that the Ltd Co has been negatively impacted by coronavirus and it is reasonable, therefore, that any lender would de-rate borrowing capacity compared to a "normal" assessment of past income.

Also relevant to the assessment will be the nature of the current business and the nature of the new proposed business.  That new business will be assessed against the business plan, whether there is (or will be) any security against the loan, and the proportion of funding that the business owner is committing.

SMRX

Thank you ever so much for your information, you've both given me a lot to think about.