Bounce Back Loan advice pls : Ltd Co, turnover £57k in 2018-19, and only expenditure in 2019-20

Ollie1117

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                                                                                                                                                               Hi, there, 
I would be great full for any insight and advice here please.
My ltd Co ( odd property sales/ few rentals on tenants finding fee only to clients I know ) was Est April 2018. As there allowance of 18 month for new companies for filling accounts, which were filled jan 2020, I thought I had an UpToDate accounts, when my accountants pointed out that with turnover of £57,000 we ought to get some BBL.
He assured me we to receive funds within  a week or 2.
 I applied in Aug to our Business Bank - NatWest - first letter was a positive ( received after 5-6 days), yet, upon acceptance of the letter's terms - the following day letter was a decline.
I spoke to NatWest then - they gave no particular reason and provided wrong email to appeal lending@ ( which recently I was told is for the bank' loan's customers not BBL), I queried again with NatWest in Step - asking how they could make decsion without looking at the accounts, they said that there ought to have been a download to attached accounts - there was none I said.  Meantime I applied for a feeder account with HCBS, where I only have a saving account as a career of a 12-year-old son, who now 15. HSBC replied that I unsuccessful as I either not a sole trader or company was not established before March 2020. (?!)
NatWest’s latest - they provided me different email to comment/ present my case as to why my company should qualify for BBL. as all they see is dormant account. I explained to them that I took a break from part time business for personal family reasons, and dived into finance degree at the uni in Sept 2019, with though to embark onto working from May 2020.... there were few large transactions of removal, inventory check out, annual insurance, services office, confirmation statement via admin office pay .... and accountancy fee in May -July 2019 then nothing until Jan 2020 for PC repairs; during this times, smaller Mandana transactions such as mailbox, website, landline line and recently, business office address fee. there was no incoming profit, just expenditure. NatWest on 3rd call stated that it appears my company dormant, but I rebuild all my website in April - July ready for action.  Where do I stay with all this? I understand now, that Co accounts outstanding, but not too bad, but can I try to get BBL on estimated figure, considering there was a turnover of £57k and me practically working part time then? Shall I challenge HSBC as well where I applied as a feeder bank? I do understand that BBL only to come from one source. Sector - new build London property sales/ rentals, I do have people to approach from 16 years’ experience in the field. I be grateful for an advice as I am 1 - man set up now . Thank you

jonesMUFCforever

So your full time employment is a student? (Dived into finance degree at Uni Sept 2019).
Since when do Uni degrees only take 9 months (Sept 2019 - May 2020) to enable you to go back to work?
IMO you seem to be manipulating figures here and there in order to try and get a BBL loan.
IMO you will not get one with either bank. 

poppy12345

You weren't trading from September 2019, so how can you expect to get a BBL?

sheramber

  You do  not say when you took a break from the business but say
I explained to them that I took a break from part time business for personal family reasons, and dived into finance degree at the uni in Sept 2019, with though to embark onto working from May 2020.... there were few large transactions of removal, inventory check out, annual insurance, services office, confirmation statement via admin office pay .... and accountancy fee in May -July 2019 then nothing until Jan 2020 for PC repairs; during this times, smaller Mandana transactions such as mailbox, website, landline line and recently, business office address fee. there was no incoming profit, just expenditure. 
 So there was no income in 2019 only ongoing expenditure.

Ollie1117

Hello, Apologies, I did not see comments, as inbox messages were shown as ZERO and just saw your 'comments'. I am a mature student. I am near 40 year off age. I had prior business in the same field, and over 15-year work experience, and was doing very well for couple years 2013-201 – that co does not qualify for BBL.  Because that company was doing very well, with accounts for my ex-husband to see, he launched few custody battles dragged out by my ex-husband for over 7 years in total in and out courts, then again in and out: basically he wanted custody of all children, I did not realised the agreement we signed at divorce in 2009 never was logged in family courts and became a grey area,  so despite seeing children, who by then lived with me f or 5 years and he had access for 5  -  he wants children at any cost. I realised that too late. Example, when he temporarily got them, he immediately, changed Gp, school for one, and launched maintenance claim against me and claimed I am supposedly such a bad mother. I do not have family in this country. Then one of sons jump of his car when driving near our area and run away to my home, I was told I had to defend myself and him, the case was dragged out for 2 years, during this time it was impossible to sale jointly-owned rental property mentioned above, that my exhsuabd stopped sharing rental income for those 2 years plus played non access for agents all through the following year - 1 step fwd., and 3 steps back as if he is cooperating but did not. Although he was paying mortgage – he was now and again missing payments, so my financial track records were affected by 2 - as it was a freehold of flat above the shop. Mortgage liability was shared. When we divorced, in 2008 -2009 that had negative equity of over 60k and was not possible to sale. Through 3 years I got exhausted, it affected my focus on my sales at company no 1, running costs continued, I was unable to close down and basically was managing counterproductively as my contact with other child was seized for months by ex-husband and siblings often went without contact for 6 months and I was heartbroken and financially stretched. My friend approached to start a new company and offered to be a director for short while whilst me developing the company and when it is larger potential for both of us to work. However, there were complications, again from my ex-husband side, in 2019 it is made my friend uncertain if she wanted to be part of it, and we considered to close the company down or she suggested in 2019 that I am to take over. I wanted things to settle down with ex-husband and until my younger’s child of certain age that he is not to be dragged again through family courts.

 

 Hence for that Company 2 (where I was told by my accountant in Aug to apply for BBL) - we only have a set of accounts for first year, filed at 18 months as it was a new set up. so, Accounts showed turnover £57k. Because of the situation I took decision to wait for things to calm down, enrolled on Uni Degree in Sept 2019 – first business studies and this year I switched to finance. Yes, it is correct there no degrees 9 months, - but one can take a gap year, which is what I was thinking in the summer. As a mature student you can manage studies and work. My old accountant said there is no restriction in that. During 2019 -2020, as my friend who was a director did not wanted to get involved with my ex-husband saga as everything with him seemed no ending even ( when he sold the rental property behind my back with estate agent only admitting after my complaint to Ombundsman that they withheld a full asking price offer from me for 7 months so that my ex and his lawyers could sale behind my back and offset my share against their unnecessary legal fees, by dragging on, it is only 6 months of my complaint did the agent produce a proof showing that they were asked not to pass the final offer onto me as if they will do and they never did. I also need advice on how best to challenge this via court, what application maybe…….). So, I was not sure to take over as director in 2019, and to wait - the access to the business bank account was not there, obviously. Just maybe 2 x transactions May and June (I get statement on Monday) - annual indemnity insurance of c £245 and c £79.00 for the annual running cost of registered and business address and address for Director via formation company as a package. there maybe were one odd costs in Sept for the filling of the confirmation statement and on in Jan 2020. The website we lost, so I rebuild slowly myself over 6 months; so, website and mailbox as landline rent were paid from my various personal accounts. My friend director did not want any transactions and for me to take over. I only took over in July 2020, as I had final hearing concerning my ex-husband in May 2020 and the application for that was since Dec. I am not sure if this explains at all. Regarding income, as I had to give away 2 key clients - there were royalty fee paid to me direct (as agreed with my director friend then) - these amounts to circa 3 x £500 over the course 2019-2020. Accountants said that these to eb accounted for and offset against the expenses, but that I must proof the expenses paid out for that business. he said that as there was prior year filed accounts, once the new set of accounts to eb filed, we can’t try to reapproach the back with new application for BBL, explaining, and with an estimate figure as their accurate accounts filed based on previous trading year transactions. My question was - to ascertain is it viable, is its worst spending monies for the set of accounts, as budget is tight, or is there no chance at all, I close this co down and restart in event if I save monies for cashflow in the future. 
Also, question was regarding HSBC, declining feeder account (I do not have a business account with them, but simple account on behalf of my son since he was 12years old since 2012, stating:
Thank you for submitting your Bounce Back Loan (BBL) application through our online portal.

We’re sorry for the delay in getting back to you – we’ve experienced unprecedented demand, meaning it’s taken us longer to respond to you than we would have liked.

Unfortunately, we’re unable to progress your application as you don’t meet the criteria to apply for a BBL. This is because you’re not operating as a Sole Trader or your business started after 5 April 2019.’. So, I be grateful for any advice or corrections. My prior accountants are online traders, their fees cheaper than the accountant who advised me of late, with his fees so much higher, so I do not want to waste monies unnecessary if there is more than 60%  potentially negative outcome for BBL, and then I just have to stick to completing my bss degree instead and remain on benefits instead of trying to work I guess...Excuse my English.

HopeAndDriftWood

The eligibility by the British Business Bank state that your business needed to be "actively trading and carrying on business on 1st March 2020, and adversely affected by Coronavirus".
You don't meet that criterion. By your own admission, your company was dormant then, and you were taking a break to study for a degree. None of the banks are going to allow you to have a BBL for that reason. Unfortunately you have less than a 60% negative chance of getting one... it's more like 95%. Some people in the early days did seem to be able to get loans for dormant companies, I believe someone was prosecuted for it the other day, but banks have cracked down on that. 

Ollie1117

ok, I guess it is clear enough answer. not sure why that second accountant was saying that payments to and from my personal account for the company are relevant... thank you 

Jeremy535897

It sounds like a few modest transactions were treated as your own business transactions rather than those of the company. There does not seem any point in refiling company accounts to include these transactions, when the income only amounts to £1,500. The most the company could borrow would be £2,000 (the minimum), and all the costs would not be worth it (and if the company is no longer trading, it wouldn't be eligible anyway).