Co-op Bank not so ethical on Bounce Back Loans?

DiseasedBunny

Another one who wants everyone to agree that the big bad bank is in the wrong, but guess what? They aren’t...

Jeremy535897

There seems to be a belief on this forum that banks have successfully been bamboozled for years by ruthless businessmen deliberately using personal accounts for their business empires to save a few pounds a year. It's a bit like the one that says that directors paying themselves by dividends deserve not to receive furlough because they were somehow cheating or gaming the system, when in actual fact they have a fiduciary duty to preserve their company's assets, not squander them on needless tax bills that can so easily be circumvented.

The banks have known for decades that personal accounts have been used for small businesses. They "turn a blind eye" to it, or even encourage it, because the paltry fees they would earn on a separate business bank account for every little sole trader selling a few thousand pounds worth of stuff on Ebay would not be worth the extra administration. Of course their terms and conditions include a provision that you can't use a personal account for business. This is so that, on the rare occasion it actually suits them to force the issue (large amounts of cash takings on a daily basis, for example), they can do so. 

brickbybrick

If I had the option (too new), I'd edit the OP to say I've never had any problems with the Co-op. OP was just suggesting an improvement in their BBL scheme.

@Anfieldlad70 Sorry you didn't get the loan. I was also told face-to-face (years back now) that receiving electronic payments for work into a current account would be fine. Problem for Starling or Tide (not really their fault; although Starling aren't communicating it very well) is that although the Gov backs the loans, they have to pay them out in the first place, and they still don't have that sort of capital to throw around apparently.

brickbybrick

Also, just noticed this on Co-op website: "If your business does not already have a business account with us you'll be able to apply for an account from 22 February 2021 using our improved application process. With our new process you can usually have your account opened within a few working days."

The deadline for new BBL applications is 31st March 2021 so this may be helpful for someone on here.

Grumpy_chap

brickbybrick said:

Also, just noticed this on Co-op website: "If your business does not already have a business account with us you'll be able to apply for an account from 22 February 2021 using our improved application process. With our new process you can usually have your account opened within a few working days."

The deadline for new BBL applications is 31st March 2021 so this may be helpful for someone on here.

So long as the business can demonstrate that it was trading before 1st March 2020.

Yahoo_Mail

Jeremy535897 said:

There seems to be a belief on this forum that banks have successfully been bamboozled for years by ruthless businessmen deliberately using personal accounts for their business empires to save a few pounds a year. It's a bit like the one that says that directors paying themselves by dividends deserve not to receive furlough because they were somehow cheating or gaming the system, when in actual fact they have a fiduciary duty to preserve their company's assets, not squander them on needless tax bills that can so easily be circumvented.

The banks have known for decades that personal accounts have been used for small businesses. They "turn a blind eye" to it, or even encourage it, because the paltry fees they would earn on a separate business bank account for every little sole trader selling a few thousand pounds worth of stuff on Ebay would not be worth the extra administration. Of course their terms and conditions include a provision that you can't use a personal account for business. This is so that, on the rare occasion it actually suits them to force the issue (large amounts of cash takings on a daily basis, for example), they can do so. 

I don't see that at all. What I see is little sympathy for people who want to have their cake and eat it too.  To be treated as personal customers when it suits them but as business customers when that suits them.

It's a bit rich to complain about it, and that's why these posted get short shrift.

Jeremy535897

Yahoo_Mail said:

Jeremy535897 said:

There seems to be a belief on this forum that banks have successfully been bamboozled for years by ruthless businessmen deliberately using personal accounts for their business empires to save a few pounds a year. It's a bit like the one that says that directors paying themselves by dividends deserve not to receive furlough because they were somehow cheating or gaming the system, when in actual fact they have a fiduciary duty to preserve their company's assets, not squander them on needless tax bills that can so easily be circumvented.

The banks have known for decades that personal accounts have been used for small businesses. They "turn a blind eye" to it, or even encourage it, because the paltry fees they would earn on a separate business bank account for every little sole trader selling a few thousand pounds worth of stuff on Ebay would not be worth the extra administration. Of course their terms and conditions include a provision that you can't use a personal account for business. This is so that, on the rare occasion it actually suits them to force the issue (large amounts of cash takings on a daily basis, for example), they can do so. 

I don't see that at all. What I see is little sympathy for people who want to have their cake and eat it too.  To be treated as personal customers when it suits them but as business customers when that suits them.

It's a bit rich to complain about it, and that's why these posted get short shrift.

A common theme in these posts is that the customers have discussed what they are doing with the bank's staff, and have been told it is no problem.