Urgent help/advice needed! HSBC declined my BBL unfairly.

Grumpy_chap

Does the loan amount applied for align with the value of business transactions into the account?

lisastevo

JamoLew said:

They will ONLY pay into a business account

Your current account makes you eligible to apply

But you need to have applied for a Business Account for it to be paid into

This wasn’t the case with me. I don’t have a business account with HSBC only a personal current account and I applied and got my funds paid into my current account

Mary_Faerie

lisastevo said:

I am a sole trader and I bank with HSBC with a personal current account and I got a BBL no problem. 

Hi lisastevo. Can I please ask some questions? When did you apply for and get your loan please? And do you use your personal account for your business? Do you use your account for ALL your business (all day to day ins and outs and not use another account for any of it/ send money to any other account). And do you use the same account for personal things too - that aren't business related?

I'm just trying to figure out why I got declined and if there's anything I can do about it.

Thanks very much!

lisastevo

Hey. Sure. I applied within the first couple of days that the scheme was open last year. All my business earning get paid into my current account, all business spending and all personal transactions, direct debits. Literally everything. I also have a part time job at a supermarket and my wage from there gets paid into it too. There is no distinction. Never had a problem, never been questioned and I got the BBL paid into that account. Maybe the rules have changed since the beginning of the scheme. I’m sorry you are strugglinf

Mary_Faerie

Grumpy_chap said:

Does the loan amount applied for align with the value of business transactions into the account?

Yes, you enter your profit and the application form calcultes the maximum sum for you. I also sent my tax return so my profit was confirmed.

Hmmm... the money coming into the account in the 12 month period may have differed actually as I use classic accounting so enter turnover as it's invoiced, not paid.

mjm3346

"which in the tax year 18-19 (which is the tax return requested as evidence of income) I did not; I forwarded money from my HSBC account to another account from which I paid for things."
Possibly that - if it was a business account all business transactions would probably be expected to go through it and where they make the personal account exception presumably they expect all business transactions to go through the one personal account

Mary_Faerie

mjm3346 said:

"which in the tax year 18-19 (which is the tax return requested as evidence of income) I did not; I forwarded money from my HSBC account to another account from which I paid for things."
Possibly that - if it was a business account all business transactions would probably be expected to go through it and where they make the personal account exception presumably they expect all business transactions to go through the one personal account

Yes, I've considered this may be the sticking point... Although many businesses have more than one account, as I did. And if this was the eligibility criterior it should be on the website clearly. And their answer that 'I do not use my account for my business' is incorrect or lacking. As I do use it for business and it also remains true that during the pandemic I have run ALL my business banking through my HSBC account!

Grumpy_chap

Mary_Faerie said:

Grumpy_chap said:

Does the loan amount applied for align with the value of business transactions into the account?

Yes, you enter your profit and the application form calcultes the maximum sum for you. I also sent my tax return so my profit was confirmed.

Hmmm... the money coming into the account in the 12 month period may have differed actually as I use classic accounting so enter turnover as it's invoiced, not paid.

The bank will be familiar with variances between invoice dates and transaction dates.

I was just trying to think of any reasons, but it seems this is not one here.  

sheramber

I think transferring the money to another account could be what the bank are considering 'not using it for business.' They do not see any business payments going out , only the money getting transferred to another bank account.
the fact that many people have other accounts as well is not relevant to your case.  unless they are applying for a business loan through HSBC and transferring their business income to one of these accounts.