Bounce back loan
- Thread starter OMGVape
- Start date
That's 3 of us Lloyd's Customers then: I applied yesterday, just been paid into the account - no other contact/checks.
I'm grateful - but I would have thought I'd at least have to explain why I needed the loan/where it was going to be spent.
I'd like to think Lloyd's have an amazing credit score facility with crystal ball vision to know that my business is going to be viable after lock down/will be able to repay the loan.
This was too easy.
With my taxpayer hat on............we've gone from struggling to get a reply from Lloyd's re-CBIL
.....to literally having the money thrown at us........
I'm grateful - but I would have thought I'd at least have to explain why I needed the loan/where it was going to be spent.
I'd like to think Lloyd's have an amazing credit score facility with crystal ball vision to know that my business is going to be viable after lock down/will be able to repay the loan.
This was too easy.
With my taxpayer hat on............we've gone from struggling to get a reply from Lloyd's re-CBIL
.....to literally having the money thrown at us........
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The deferred interest is paid by the government direct to the lender. So the initial sum would still be £50k. If you can pay it all off in month 12 then there would be zero interest on the money at all.
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Applied early hours of this morning with HSBC after receiving an email saying on-going CBIL loan was cancelled due to the loan being less than 50k. At the end of it, it says ''you will be contacted using the details provided to progress further.
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Santander Update - Hope this is helpful to a few of you. Applied yesterday at 9am and I've not had an e-mail with the paperwork (signable PDFs) come through yet. Should be "within 24 hours"
I've just spoken to a very helpful lady at the call centre who advised that while there have been delays getting the funds out of the door, the paperwork has been dispatched like clockwork so far, so if it's been 24 hours and you've not had the e-mail asking you to sign the loan agreement, it's highly likely something has gone awry.
They have a separate team looking in to cases of missing paperwork, so give them a call if you haven't heard anything yet.
P.S. Still no paperwork, but at least I feel like they're on the case now.
I've just spoken to a very helpful lady at the call centre who advised that while there have been delays getting the funds out of the door, the paperwork has been dispatched like clockwork so far, so if it's been 24 hours and you've not had the e-mail asking you to sign the loan agreement, it's highly likely something has gone awry.
They have a separate team looking in to cases of missing paperwork, so give them a call if you haven't heard anything yet.
P.S. Still no paperwork, but at least I feel like they're on the case now.
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B
Beyond
I'm with Santander I applied yesterday at 1.30pm and had my loan paper work at 8pm lastnight signed it, but nothing back yet or money in the bank
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Might sound obvious but have you checked your spam? Our Santander paperwork came from [email protected]
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Thanks for the reply.
Have tried 3 x browser, switched off and on and cleared cookies. Have also tried from my phone.
I get to click the "select business" button and it goes more or less straight the error people are experiencing. Not once got to start an application.
We don't have a debit card so I can't even register for the app.
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https://www.bbc.co.uk/news/business-52542037
you’re not alone. Barclays system seems to be overloaded.
They will sort it out soon hopefully
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You are trying to find an excuse / convenient justification for the pre-planned defaults.
You're helping them with excuses.
When you are Chancellor of the Exchequer we'll let you translate the government's intention. Till then, it's being called a loan because it's a loan, not a handout.
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As above, using one of my businesses it goes through straight away, I can still do so even though I've already applied, but two other businesses go straight to the error message, so I think they're filtering businesses somehow.
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It's interesting how agressive/rude some posters are about these loans being a charter for abuse. Are they by any chance in the business of financing and dislike such attractive competition?
While I know most businesses fail in the end, I'm sure the ones that fail deliberately from preplanned malicious planning with intent to serially defraud hmrc and creditors are in a very tiny minority. They seem to forget that the whole idea of limited liability companies is to encourage risk without punishing failure. It is the whole reason the structure exists.Failure and default is inevitable to some degree, most will go on to try again, generating income, jobs and taxes. The system works, generally.
I remember once, nearly 20 years ago, working out that in 10 years of trading, in a small village of 2500 folk, albeit with a good tourist trade; I had turned over in excess of a million pounds and paid around a quarter of a million pounds in taxes, nic's employers nic's, vat etc. I went bust after foot and mouth, owing 8k to vat and 36k to the bank, so approx 40k was written off. In the same period, if I had been employed in my trade, I would have earned less than £150k gross over the 10 years and paid £20-£25k in tax and nic. Thats why governments are happy to let the small ltd co's keep running, the sector is a massive benefit to the local economies and hmrc overall, despite the ones that fall over in the process.
While I know most businesses fail in the end, I'm sure the ones that fail deliberately from preplanned malicious planning with intent to serially defraud hmrc and creditors are in a very tiny minority. They seem to forget that the whole idea of limited liability companies is to encourage risk without punishing failure. It is the whole reason the structure exists.Failure and default is inevitable to some degree, most will go on to try again, generating income, jobs and taxes. The system works, generally.
I remember once, nearly 20 years ago, working out that in 10 years of trading, in a small village of 2500 folk, albeit with a good tourist trade; I had turned over in excess of a million pounds and paid around a quarter of a million pounds in taxes, nic's employers nic's, vat etc. I went bust after foot and mouth, owing 8k to vat and 36k to the bank, so approx 40k was written off. In the same period, if I had been employed in my trade, I would have earned less than £150k gross over the 10 years and paid £20-£25k in tax and nic. Thats why governments are happy to let the small ltd co's keep running, the sector is a massive benefit to the local economies and hmrc overall, despite the ones that fall over in the process.
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Well said, totally agree.
It’s hard enough in business as it is . This is the first time in my lifetime that HMG have tried to do something to support business, that’s for sure.
As for the Banks, well they have always been next to useless that’s why there are so many middle men taking fees to help you get loans over the line that banks should underwrite in the first place.
It’s really refreshing frankly that this time the banks are at least stepping up, albeit with 100% government backing, to get loans out and business working capital bolstered.
Let’s just appreciate that for what it is in a time of worldwide crisis,
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You sound like you did everything you could to make your business survive and I am sure most will have every sympathy with any such business going under. Where as stupid questions basically stating, can I just get a fully guaranteed loan with no comeback and pocket the cash personally, should only ever get a negative response.
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Personally, I have never liked the conservative party, but I have to say, Rishi Sunak has done this country proud and I am extremely grateful for the lifeline the Conservative Government have thrown to small businesses.
Yes, there will be people out there that will defraud the system - afterall, everything is self certified and I cannot see anywhere that mentions anything about any checks on turnover, etc, but that's for those peoples conscience to deal with, but I do feel that the vast majority of people will see this loans as a genuine lifeline for a business that they've poured their heart and soul into.
Yes, there will be people out there that will defraud the system - afterall, everything is self certified and I cannot see anywhere that mentions anything about any checks on turnover, etc, but that's for those peoples conscience to deal with, but I do feel that the vast majority of people will see this loans as a genuine lifeline for a business that they've poured their heart and soul into.
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Exactly. It may be used and abused, and it will sink some businesses, but it will most certainly save some. The cash injected into the economy will do some good too, and even those who make a big payment to themselves immediately after receiving the money, they will spend some of that in businesses that need the trade.
It’s not perfect, but it’s not possible to make it perfect. They tried with CBILS but when that turned out to be dogsh*** they came up with a new plan and implemented it quickly.
Good effort I reckon.
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Yes, fair play to the lad. He gets a new job and almost immediately gets to take part in the biggest crisis of several decades.
Shovelling money out by one means of another is far from perfect. But we do not have the time as businesses to wait for perfect. Nor does the economy.
Take decades to unravel the problems caused - but helps now.
Buys time, nothing more.
Up to businesses to adapt or come up with decent solutions to problems now. Like how to sell goods to customers scared to go out. Or how to protect staff.
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I totally agree, it’s a well needed lifeline for a heck of a lot of small businesses.
Would like the >50k to <250k loans fixed now under CBILS the banks are clearly not effective at sorting.
I think the best suggestion i read on these forums to fix the medium loan issue was for the business to put up security on these loans of 20% to HMG 80% - I really think that could work?
Would like the >50k to <250k loans fixed now under CBILS the banks are clearly not effective at sorting.
I think the best suggestion i read on these forums to fix the medium loan issue was for the business to put up security on these loans of 20% to HMG 80% - I really think that could work?
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I'm gonna apply for a cheeky 5k.
I'm applying as I cane on here yesterday and read this thread and it was absolutely buzzing with excitement. My long term contractual worker has had a nightmare during this period with family and car trouble so I'm paying her for 10 months in advance on her normal hours and monthly on a new contract for half the cost/time. I hope to pay that off in 3 years at total interest of £192. 145 a month. She can then get a new motor and she might stop moaning so much.
I'm applying as I cane on here yesterday and read this thread and it was absolutely buzzing with excitement. My long term contractual worker has had a nightmare during this period with family and car trouble so I'm paying her for 10 months in advance on her normal hours and monthly on a new contract for half the cost/time. I hope to pay that off in 3 years at total interest of £192. 145 a month. She can then get a new motor and she might stop moaning so much.
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Is 5k all you're entitled to? The reason I ask is when we applied it stated that you cannot apply for more at a later time so to basically apply for whatever you can now. If you end up not needing more than 5k after the first 12 months you can always repay the extra and then just pay the 5k on monthly instalments.
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No it's from being active members of this forum for many years and watching so many people who couldn't pay their tax as they had spent it trying to wriggle out of payment.
We even had someone a couple of weeks ago who normally took March off as unpaid holiday as it was so quiet in his trade but now he decided that he wanted to furlough himself and get the taxpayer to cough up for him instead
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I'm the rudest. And I can assure you that I'm not in the loans business.
I write as a tax payer. It's insanely stupid to give idiots large chunks of money purely on self certification. If they don't know what turnover means you're still asking them to self-certify turnover and you're giving them tens of thousands of pounds based on what they claim is their turnover?!
Further, every crook with a £10K business can self certify that his turnover is £200K and he can borrow £50K from the tax payer no questions asked.
There are plenty of crooks and assh*les around. And there are morons who are getting very excited about all this free money. They think they've won the lottery and it doesn't matter what they spend it on as long as they spend it all!
You reckon people like these are going to be in a position to pay back the loans? They are not even seeing it as a loan. One freaking question it this thread was about whether this money could be drawn as dividend!
These loans will actually push many businesses into failure because the bozo owners took a BBLS, splurged it on a new car, and are unable to afford repayments.
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Yeah, that will happen too, you think Sunak is dumb and hasn't considered that fact? Set against that, for every one who does exactly what you predict, there will be thousands for whom it is a lifeline that keeps them operating.
If it was good enough for the bloody banks in 2008, it's good enough for us.
Actually, thinking about this
"Further, every crook with a £10K business can self certify that his turnover is £200K and he can borrow £50K from the tax payer no questions asked."
Do you really think that can happen? The banks have formulas based on the infklow and outflow of our accts, surely they can take a good guess when someone is bullshitting them completely like this? I reckon it would flag up and they would reject the application.
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I’m absolutely convinced that I’d read somewhere that loans could be retrospectively checked but I cannot for the life of me find it now. I’ve read through the terms from the two banks I’d looked at on Monday and can’t find it anywhere.
I do suspect though that if a business fails to repay the loan and the government guarantee is called on, the government will make damn sure that your application was 100% genuine.
The problem is the whole ‘estimated turnover’ bit. What’s to stop a business over-egging their ‘estimation’ to get the maximum loan amount?
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We even had someone a couple of weeks ago who normally took March off as unpaid holiday as it was so quiet in his trade but now he decided that he wanted to furlough himself and get the taxpayer to cough up for him instead
Perfect example! The furlough scheme is to help businesses pay wages. I normally take March off from choice, not because I'm quiet. I can normally fill any month I wish with portraits by running online promotions in social media. I take my holiday then cos it's quiet in the areas I walk in.
As it happens, I didn't go on holiday, and all my work until August disappeared, not to mention refunding some in March.
But some pedant objects to me asking if I can furlough from 1st march?
As it happens, I rang hmrc helpline, and was told that yes, I could apply from the 1st March if I hadn't been working. The question was perfectly legitimate and was met by ill found scorn in some replies.
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I'm very much in the business of financing, and am supportive of the scheme - totally in the context of it being a hand-out , not a commercially viable loan arrangement.
My antagonism towards the scumbags is informed by 30 years experience, including time as a debt collector.
Put simplistically, we can divide the borrowers into 3 categoties.
- Decent, honest businesses with a reasonable chance of survival and repaying. Some of these will fail, arguably 'through no fault of their own' Though a serious business owner will always take responsibility for their decisions). Many of these will take the money 'just in case' and put it on deposit., which is slightly wasteful on resources but ultimately harmless
- Incompetent business owners; like the ones who come on here moaning because they've 'accidentally' hit the VAT threshold 'my accountant didn't tell me' or been knocked by a bad debt because they didn't have a credit control process. This category is the reason I stopped promoting unsecured loans 3 years ago - most will default.
- Scumbags. Serial phoenixers, those who treat the SpongeBob Plan as a business model and outright fraudsters. They have absolutely no intention of repaying and will be rubbing their hands together at this opportunity to get free money at our expense.
Again, there are multiple economic benefits and shortfalls - we can only guess at which way the final balance will go.
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