Bounce Back Loan Help

WillCheshire20

Does anyone know if there is a way to apply for a bounce back loan when the bank I bank with doesn't offer them. I currently bank with Tide and they dont offer them. The only way i can get one is if i open a bank account with the lender, however non of the banks will offer me a bank account.
I am a Limited company trading since Sept 2018.
Can anyone offer any advice.
Thanks

Grumpy_chap

Why are you not able to get a business account with any of the banks offering the BBLS?
Have you looked into the banks that offer feeder accounts, such as HSBC?
Can you demonstrate (to a bank) that the business has been actively trading since 2018?  If the bank thinks the business is new, then they may assess the business as not eligible for BBLS.  Simply looking at incorporation date does not prove the business began operating.

Jeremy535897

I think that all the banks are overwhelmed, and are only dealing with existing customers at present.

Gr8st33t

Hi, I’m looking to apply for a Business Bounce Back Top Up loan, having successfully applied for the original loan in the summer. I bank with Santander and according to the online application form for the top up, the turnover must be the same as in the original application. Unfortunately, I forgot to take a screenshot of the amount and have checked my notes. I am just concerned that the figure I have written down might be off by about £500-£1000 or so. Does anyone know if banks can actually refuse a Top up loan purely on the basis that the turnover entered does not exactly match the original application? As far as I am aware, the original application was asking for an “estimated” figure anyway, so I am hoping being a few hundred pounds off won’t matter that much? Should I proceed with my application even if I can’t recall the exact figure in the original application? Many thanks.

Grumpy_chap

Unless your business was in first year of trade, the turnover is for 2019, which is (and was) a matter of fact - no estimate required.  Why didn't you have accurate turnover available for 2019?

WillCheshire20

Im not sure why not, everytime i apply it just says unfortunately we cant open you an account at this moment in time. We have been trading for 2 years with 2 years accounting, no creditors but cant seem to open a mainstream bank account.

MattMattMattUK

WillCheshire20 said:

Im not sure why not, everytime i apply it just says unfortunately we cant open you an account at this moment in time. We have been trading for 2 years with 2 years accounting, no creditors but cant seem to open a mainstream bank account.

Many banks have temporally closed new business account applications due to the issues caused by having so many applications for new accounts and for bounce back loans. That was expected to resolve itself at the end of November when the BBLS was due to close to applications, but because the government extended the scheme banks have extended the restrictions on new accounts. Banks are making sure that they are prioritising their existing customers, as an example they have processed four times as many new account applications and nearly ten times as many loan applications this year as in previous years, all whilst having to have a huge amount of their workforce off or working from home. 

HSBC was offering the BBLS through the feeder account system but that was suspended as they became utterly swamped and most other banks refused to deal with anyone who was not already banking with them. Now with the top-up option many are being hit with a second wave of requests. It may be a case that you have already passed the window of opportunity to obtain a BBL, especially as the original window is already closed. Although a more lengthy procedure it is still possible to obtain a CBIL, so if you are looking to borrow more than £50k and meet the criteria that may be an option. Other than that it is either a waiting game to see if applications reopen, or you will have to look to other sources of funding. 

WillCheshire20

MattMattMattUK said:

WillCheshire20 said:

Im not sure why not, everytime i apply it just says unfortunately we cant open you an account at this moment in time. We have been trading for 2 years with 2 years accounting, no creditors but cant seem to open a mainstream bank account.

Many banks have temporally closed new business account applications due to the issues caused by having so many applications for new accounts and for bounce back loans. That was expected to resolve itself at the end of November when the BBLS was due to close to applications, but because the government extended the scheme banks have extended the restrictions on new accounts. Banks are making sure that they are prioritising their existing customers, as an example they have processed four times as many new account applications and nearly ten times as many loan applications this year as in previous years, all whilst having to have a huge amount of their workforce off or working from home. 

HSBC was offering the BBLS through the feeder account system but that was suspended as they became utterly swamped and most other banks refused to deal with anyone who was not already banking with them. Now with the top-up option many are being hit with a second wave of requests. It may be a case that you have already passed the window of opportunity to obtain a BBL, especially as the original window is already closed. Although a more lengthy procedure it is still possible to obtain a CBIL, so if you are looking to borrow more than £50k and meet the criteria that may be an option. Other than that it is either a waiting game to see if applications reopen, or you will have to look to other sources of funding. 

Thank you kindly for your response, we were able to weather the first lock down barely, but unfortunately looks like we are now going to have to lay off staff, sell assets and possibly close the business all for the sake of £10k sad but inevitable.

Gr8st33t

Gr8st33t said:

Hi, I’m looking to apply for a Business Bounce Back Top Up loan, having successfully applied for the original loan in the summer. I bank with Santander and according to the online application form for the top up, the turnover must be the same as in the original application. Unfortunately, I forgot to take a screenshot of the amount and have checked my notes. I am just concerned that the figure I have written down might be off by about £500-£1000 or so. Does anyone know if banks can actually refuse a Top up loan purely on the basis that the turnover entered does not exactly match the original application? As far as I am aware, the original application was asking for an “estimated” figure anyway, so I am hoping being a few hundred pounds off won’t matter that much? Should I proceed with my application even if I can’t recall the exact figure in the original application? Many thanks.

Just to clarify, my question is NOT about the accuracy or otherwise of the 2019 turnover, but rather, whether a discrepancy between the reported turnover on the original application and the turnover entered on the top up application, however small, would be sufficient grounds for the bank to refuse the top up loan, since the online form states that they must be the same. Say, for instance I entered 80,000 when the original figure was in fact 79,000. Does anyone know if this really matters? Would the bank not simply get back and say that I am not allowed to change my turnover figure (which I am aware of and is NOT my intention at all) and instead inform me that they can only offer X amount as the maximum, based on the original turnover I had provided? Could I legally oblige the bank to send me a copy of the original application if I cannot recall the exact amount?
I am particularly keen to hear from those in the same position: i,e, could no longer remember the precise turnover figure, but went ahead with the top up application anyway with their best guess, and got approved nonetheless. Thank you.

MattMattMattUK

WillCheshire20 said:

Thank you kindly for your response, we were able to weather the first lock down barely, but unfortunately looks like we are now going to have to lay off staff, sell assets and possibly close the business all for the sake of £10k sad but inevitable.

If it is £10k are there not other ways to fund it, a loan secured against property or a personal loan for example would likely still be available. If you have assets withinn the business then you may also be able to borrow against them. Whilst the BBLS may be temporarily unavailable other lines of credit are still available. You could even look at using VAT or corporation tax to fund the amount needed by agreeing a payment plan with HMRC, they will charge interest, but it would mean you could utilise the money in the short term.

warby68

Gr8st33t said:

Gr8st33t said:

Hi, I’m looking to apply for a Business Bounce Back Top Up loan, having successfully applied for the original loan in the summer. I bank with Santander and according to the online application form for the top up, the turnover must be the same as in the original application. Unfortunately, I forgot to take a screenshot of the amount and have checked my notes. I am just concerned that the figure I have written down might be off by about £500-£1000 or so. Does anyone know if banks can actually refuse a Top up loan purely on the basis that the turnover entered does not exactly match the original application? As far as I am aware, the original application was asking for an “estimated” figure anyway, so I am hoping being a few hundred pounds off won’t matter that much? Should I proceed with my application even if I can’t recall the exact figure in the original application? Many thanks.

Just to clarify, my question is NOT about the accuracy or otherwise of the 2019 turnover, but rather, whether a discrepancy between the reported turnover on the original application and the turnover entered on the top up application, however small, would be sufficient grounds for the bank to refuse the top up loan, since the online form states that they must be the same. Say, for instance I entered 80,000 when the original figure was in fact 79,000. Does anyone know if this really matters? Would the bank not simply get back and say that I am not allowed to change my turnover figure (which I am aware of and is NOT my intention at all) and instead inform me that they can only offer X amount as the maximum, based on the original turnover I had provided? Could I legally oblige the bank to send me a copy of the original application if I cannot recall the exact amount?
I am particularly keen to hear from those in the same position: i,e, could no longer remember the precise turnover figure, but went ahead with the top up application anyway with their best guess, and got approved nonetheless. Thank you.

Can you remember how much you applied for in relation to turnover? Presumably not the max if you can top up but maybe its a memory jogger and you can work back.
I wouldn't want to disclose to the Bank that I couldn't remember the turnover figure as it does suggest the number was made up, although I fully understand how there might have been an element of estimate involved at the time.