Bounce back loan
- Thread starter OMGVape
- Start date
According to financial times, hmrc are going to retrospectively check applications. However, do you really think hmrc are ever going to have the time or resources to do so?Oh I can see what my estimate is.
Easy enough to back that up if asked.
Unlikely to ask at the moment.
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On the basis it's £50k max and no more than 25% of annual t/o I don't think they'll particularly care whether it's £30k per month or £50k. So long as you're at £200k a year you're fine.
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It's in the British Business Bank guidance to lenders.
https://www.british-business-bank.co.uk/wp-content/uploads/2020/05/20200502-BBLS-RFP.pdf
Yes, you can estimate if you weren't trading long enough.
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Freeagent - I'm sure it could but I was logged into online banking doing the application, and didn't want it time-out whilst I figured it out, so I went with my estimate. As I said, I'm not sure they could want anything more precise than the method I used, it was never going to be less than £500k by any metric so the exact figure makes no difference.
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Thankfully we have not had it too bad but
Its all we need. We see an issue with a person we need. People are fretting right now so we use that fund to inject a bit of confidence into our contractor and that injection will solve an ongoing issue she has had with transport.
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Just (Wednesday 06/05) received what appears to be the loan agreement for signing (digitally) so assume that is it now all done.
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I read this on Starling site and thought it's a business loan, so why a check on personal credit file?
By submitting your registration of interest, you’re confirming to us that you are a director or partner authorised to act on behalf of the business and consenting to us undertaking a new credit check on your profile, which includes a check on your personal credit file and one for your business entity. Where there are fewer than 4 directors in the business, you confirm that all Persons of Significant Control consent to us undertaking a credit check on both their business and personal credit files. All personal information that you give us will be stored and processed in accordance with our Privacy Notice.
By submitting your registration of interest, you’re confirming to us that you are a director or partner authorised to act on behalf of the business and consenting to us undertaking a new credit check on your profile, which includes a check on your personal credit file and one for your business entity. Where there are fewer than 4 directors in the business, you confirm that all Persons of Significant Control consent to us undertaking a credit check on both their business and personal credit files. All personal information that you give us will be stored and processed in accordance with our Privacy Notice.
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Has anybody here applied via the HSBC "feeder account" method?
Spoke to them on the phone this morning and they advised to await paperwork via e-mail for the feeder account, and then a phone call from their lending team to finalise the loan.
Had nothing so far - does the feeder account take a day or so?
Spoke to them on the phone this morning and they advised to await paperwork via e-mail for the feeder account, and then a phone call from their lending team to finalise the loan.
Had nothing so far - does the feeder account take a day or so?
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It’s totally disappointing that HSBC is the only bank that will support businesses that bank elsewhere and even then you have to p@ss about opening some stupid feeder account with them first, that let’s face it nobody wants, before you can even apply for a loan.
You would think that their would be some other central provider to process all other applications. Either that or insist banks deal with ALL businesses during this pandemic especially as it’s no risk to them, they are simply processing loans. The council could do that!
You would think that their would be some other central provider to process all other applications. Either that or insist banks deal with ALL businesses during this pandemic especially as it’s no risk to them, they are simply processing loans. The council could do that!
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For that interest rate really is anyone making much money from interest?
Can imagine it costs the bank overall for processing, staff time, plus later chasing payments then taking time to get the money from government.
Realistically we are talking what? A couple of years to get defaulted money paid?
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Barclays have changed the info on their site:
One of the FAQs used to be:
I only have a personal account but own a business- can I apply?
Yes, but you'll need to update your account details first. To do this, log into Online Banking, start a web chat and we'll help you make the necessary changes.
I've spent at least 4 hours on the phone and web chat asking them how can I add my business details to my personal account and am being sent around in circles.
I see tonight the FAQ has been changed to:
I only have a personal account but own a business, can I apply?
Whilst personal current accounts should not be used for business purposes, we understand that a number of smaller businesses may have been using their personal accounts for business trade. If your business qualifies for a Bounce Back Loan and you’ve been using a personal account until now, you can find out more about our Barclays Business current accounts by visiting our Business Banking website, or alternatively, you can call the New Customer Team to discuss creating a business relationship.
Well, I haven't been using my personal account for business, I simply bank with Revolut and Transferwise for business.
I am losing hope here.
One of the FAQs used to be:
I only have a personal account but own a business- can I apply?
Yes, but you'll need to update your account details first. To do this, log into Online Banking, start a web chat and we'll help you make the necessary changes.
I've spent at least 4 hours on the phone and web chat asking them how can I add my business details to my personal account and am being sent around in circles.
I see tonight the FAQ has been changed to:
I only have a personal account but own a business, can I apply?
Whilst personal current accounts should not be used for business purposes, we understand that a number of smaller businesses may have been using their personal accounts for business trade. If your business qualifies for a Bounce Back Loan and you’ve been using a personal account until now, you can find out more about our Barclays Business current accounts by visiting our Business Banking website, or alternatively, you can call the New Customer Team to discuss creating a business relationship.
Well, I haven't been using my personal account for business, I simply bank with Revolut and Transferwise for business.
I am losing hope here.
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We use transferwise mated with stripe for the huge saving that it gives to accept international payments in all of our markets.
I'm in the same boat as you but I also can't blame the banks. If the government wanted to support us, it would've been easier for them to do it directly, I can't blame the banks for supporting their paying customers first because, I think that's the key take-away here. They will deal with non-customers if they still have enough money left later, That makes perfect business sense to me.
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You are absolutely right
But in a pandemic it really shouldn’t be about making the banks money, you can bet your life that the banks will also use the scheme to push their own risk onto the government by encouraging existing customers to use bounce back money to pay off overdrafts or loans where they think the customer is higher risk of defaulting.
The bounce back scheme should be via the council or HMRC, the banks always disappoint frankly
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I'll take the chance. I can't see them giving a damn so long as it's paid back-government money is only subsidising the first year as far as I can see.
I've just signed the PDF with NatWest for the full 50k. Applied last night, email to with link to sign arrived 5AM this morning and luckily I was already at the yard.
I take Clinton's point about self cert being open to abuse, and am technically doing it myself. But I missed the boat on self cert mortgages due to my age, and got royally ****ed by house prices since, so this is my bite of the cake as far as I'm concerned.
I'm a sole trader with assets already exceeding 100k. I will use the 50K to pay off around 15k of finance at higher rates, and the rest will be used essentially as dirt cheap asset finance on things you can't normally get good rates on- second hand machines, small petrol tools, maybe a new trailer, a new lathe, that sort of thing. They can't take my house, so I'm happy with the risk profile as it's nothing I don't already do with assets currently on finance. Finance deals on new machines are secured against the machine, this loan is effectively secured against other machines I already own and will be used to buy more of the same.
It's about as close to responsible abuse of the scheme as you can get.
The ones to watch will be companies that were in trouble already, that just sell services, own no assets and will blow this on marketing and other misdirected efforts. If I were a website builder for example, I'd be churning out BBLS landing pages!Also, just to prove I'm not a total system abusing ******, I'll also give my sole employee (who really is very good) a pay rise despite the ongoing crap (we're still as busy as ever) There you go Boris- trickle down effect!
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The fact that they removed the trading in difficult clause, and also that they ask if the business has been affected by COVID rather than if it has been negatively affected, suggests to me that they want everyone to fill their boots and start spending. Just like @bodgitt&scarperLTD above, stimulating the economy and adding liquidity.
They’ve left it open to basically any business to apply on purpose it seems.
They’ve left it open to basically any business to apply on purpose it seems.
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That’s because they will loose a load of money on it. Do you expect to provide your own service indiscriminately, at a loss to help out during lockdown?
The banks are in the relatively privileged position of having our money on deposit without having to pay for it - and they will still almost certainly loose money on the scheme
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Received the completed agreement and "you're all done" email from NatWest yesterday afternoon (Wednesday 06/05) . Have no immediate urgency for money but will obviously be keen to see it arrive.
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I'll take the chance. I can't see them giving a damn so long as it's paid back-government money is only subsidising the first year as far as I can see.
I've just signed the PDF with NatWest for the full 50k. Applied last night, email to with link to sign arrived 5AM this morning and luckily I was already at the yard.
I take Clinton's point about self cert being open to abuse, and am technically doing it myself. But I missed the boat on self cert mortgages due to my age, and got royally ****ed by house prices since, so this is my bite of the cake as far as I'm concerned.
I'm a sole trader with assets already exceeding 100k. I will use the 50K to pay off around 15k of finance at higher rates, and the rest will be used essentially as dirt cheap asset finance on things you can't normally get good rates on- second hand machines, small petrol tools, maybe a new trailer, a new lathe, that sort of thing. They can't take my house, so I'm happy with the risk profile as it's nothing I don't already do with assets currently on finance. Finance deals on new machines are secured against the machine, this loan is effectively secured against other machines I already own and will be used to buy more of the same.
It's about as close to responsible abuse of the scheme as you can get.
Also, just to prove I'm not a total system abusing ******, I'll also give my sole employee (who really is very good) a pay rise despite the ongoing crap (we're still as busy as ever) There you go Boris- trickle down effect!
Get the money
Make it work
Pay it back in full
Seems like reasonable abuse to me
Let’s be honest, even if HMG did do retrospective tests, are they really equipped to take action against those who are repaying? What would be the point?
Challenges will be made against defaulters. Hopefully the scumbag element will be properly pursued
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Will they though?
The only reason the government have upped their usual guarantee on small business lending from 0% to 100% is because they know how high the risk of default is.
The cost to the taxpayer of backing these loans has already been widely discussed, do we think spending more money investigating how people have defaulted on a “probably will default” loan, challenging businesses owners to prove why they failed in the middle of a pandemic and chasing money that has long since been spent will be an effective use for even more of our tax revenue?
People will default, people will spongebob, people will go out of business, usual rules will apply. That’s my betting anyway.
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