Bounce Back Loan Help

warby68

WillCheshire20 said:

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.

If £10k can save the business, have you explored all the other forms of finance? I know BBL is advantageous but conventional forms of finance are still available. It is possible that the mainstream Banks overcome their issues at some point before the window closes and you can 'refinance'. A gamble I know but £10k versus closure is painful whichever way you look at it.
Unfortunately its the occupational hazard of using a challenger bank which does not have the capital or other resources to cope with this unprecedented set of circumstances. Agile in some ways but not when it comes to the fundamentals of a large uplift in lending capacity.

Grumpy_chap

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.

As I stated above, by the time the BBLS scheme was introduced, 2019 turnover was a matter of fact and not open to any estimation.  The correct figure to use for the first application was the actual figure.  Had that been the case, there would be no wondering now what figure was used.

You now say you are not querying the accuracy of the 2019 turnover, but whether there is a discrepancy between the reported figures.  I am not sure what discrepancy there could be that would not indicate that one of the figures entered (either original application or tip-up) was inaccurate.

Are you sure the bank did not send you the original application by either e-mail or post?  If you truly do not have a copy of the original application, I suspect if you contact the bank and ask for a copy of the loan agreement, they should be able to send you a copy.  Simply explain that the previous documentation has been unfortunately misplaced and could the bank do you a favour, rather than starting from a point of whether you could "legally oblige" the bank to provide the information.  There may be a nominal admin charge for duplicate paperwork.

If you cannot obtain the paperwork before you need to make the additional application, then the significance of any discrepancy will likely come down to the order of magnitude.  If your actual turnover is £79,486 and you may have entered £79k or £80k, then rounding the other way now may not be an issue.  Obviously, I can't say whether the bank will assess any change as a "flag".  It still seems odd not to have simply entered the correct actual figure for turnover.  If the discrepancy is more substantial such that the bank deems it significant, then changing the figure is quite likely to trigger fraud alerts.

It is quite odd that as you describe a large business (for a owner-run Ltd Co), as you say laying off staff and selling assets, you did not have an Accountant to provide advice on matters such as this.

MattMattMattUK

The bank will have emailed you your completed application as part of the contract, can you find that, recover it from your recycle bin or deleted items, backups etc.? Some banks also stored them in their online systems so you may be able to access it there, alternatively you can ask the bank for a copy, although no idea how long that will take.