Bounce back loan

[ville1401]

I got an email from NATWEST yesterday requesting I review and sign the loan acceptance form, due to be paid on the 4th June! Now thats ok, I can wait till the 4th June as my overdraft will cover that. But that's almost a month to wait, which could be critical to many other small businesses with NatWest. Plus of course they will benefit form a months overdraft charges from me, which I would preferred not to have to use. So much for getting the cash out fast to pump into the economy.
I'm impressed by the governments handling of this for smaller businesses (completely unimpressed by anything else they have done about it, it's a shambles, but thats politics, and not business) but I've been not happy with natwests service and approach for a while. I see a switch of business banks coming in the future.

 

[trax7960]

I got an email from NATWEST yesterday requesting I review and sign the loan acceptance form, due to be paid on the 4th June! Now thats ok, I can wait till the 4th June as my overdraft will cover that. But that's almost a month to wait, which could be critical to many other small businesses with NatWest. Plus of course they will benefit form a months overdraft charges from me, which I would preferred not to have to use. So much for getting the cash out fast to pump into the economy.
I'm impressed by the governments handling of this for smaller businesses (completely unimpressed by anything else they have done about it, it's a shambles, but thats politics, and not business) but I've been not happy with natwests service and approach for a while. I see a switch of business banks coming in the future.

It’s not going to be paid on 4th June, that’s just the date that your PDF/offer expires. Judging by other experiences I’d say probably middle of next week?

 

[Fulfil]

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.

Money has landed today.(Friday 08/05)

 

[Fulfil]

I got an email from NATWEST yesterday requesting I review and sign the loan acceptance form, due to be paid on the 4th June! Now thats ok, I can wait till the 4th June as my overdraft will cover that. But that's almost a month to wait, which could be critical to many other small businesses with NatWest. Plus of course they will benefit form a months overdraft charges from me, which I would preferred not to have to use. So much for getting the cash out fast to pump into the economy.
I'm impressed by the governments handling of this for smaller businesses (completely unimpressed by anything else they have done about it, it's a shambles, but thats politics, and not business) but I've been not happy with natwests service and approach for a while. I see a switch of business banks coming in the future.

Based on my experience, as above, then you should get it in less than a week, start to finish.

 

[Spongebob]

NO 25 percent is ridiculously high default rate not sure where you got that idea from ...also at 2.5 % and repayable over 6 years ..repayments can come from a job especially at lower end of scale value wise

I'm surmising that most applicants will be limited companies. Most one-man band businesses wisely operate as limited companies these days instead of being self-employed.

The after-effect of the lockdown is going to be catastrophic. Huge numbers of small businesses are going to face insolvency in the ensuing depression as their turnover collapses while their overheads grind on. A few grand in a BBloan isn't going to go far.

The self-employed will have no alternative but to repay the loan from earnings from a job if their business fails or risk personal bankruptcy.

Directors of one man limited companies have the luxury of being able to walk away unscathed if their business fails. Many will undoubtedly do so. I don't think a potential 25% default rate is an exaggeration. Most of those are businesses which would never qualify for a loan under commercial criteria.

 

[Mr D]

. Most of those are businesses which would never qualify for a loan under commercial criteria.

Which is pretty much the reason these loans came into being!

 

[trax7960]

Which is pretty much the reason these loans came into being!

True, but not being able to qualify doesn't equate to not being able to pay it back.

 

[Rotor]

I`ve already had a £25k BBL but based on my turnover I could have had £35k , now a new opportunity , (discounted machinery) has arisen , can I apply for a second BBL of £8k?

 

[Mr D]

True, but not being able to qualify doesn't equate to not being able to pay it back.

Indeed - a chunk of those who don't qualify for whatever reason for other loans (personal credit score, insufficient paperwork, not meeting whatever target etc) will be able to pay this loan back. If they can trade.

Some will end up unable to pay it back - due to business failing. Which leaves all debts the same way. But they'd be unable to pay back no matter what happened.

Guys, we have one chance with this loan. Don't expect a repeat - treat it as the tap immediately turning off on payment of loan. And work on that.

 

[anonuk]

I`ve already had a £25k BBL but based on my turnover I could have had £35k , now a new opportunity , (discounted machinery) has arisen , can I apply for a second BBL of £8k?

I don’t believe so. When we applied through Santander (also looked at the Lloyds application) and both said you cannot increase the amount of your loan once you’ve applied for it. The terms also say you’re not eligible if you already have a BBL.

 

[swankypants69]

Natwest, applied Monday, funds received today

Can’t complain given the volume of people who will be applying

 

[Frogmann]

HSBC may have redefined the terms of the bounce back loan. The wording clearly suggest they are discouraging people to apply. They are also credit-searching directors

 

[Mancunian]

HSBC may have redefined the terms of the bounce back loan. The wording clearly suggest they are discouraging people to apply. They are also credit-searching directors

How are they discouraging people from applying?

 

[Frogmann]

How are they discouraging people from applying?

They have reworded the notes on their application page, they will also record bounce back loan with credit reference agencies.

 

[Mancunian]

They have reworded the notes on their application page, they will also record bounce back loan with credit reference agencies.

I don’t see anything that would discourage applications. Can you point me to what you are referring to please?

They mention doing an ‘enquiry’ search on credit files, but not full credit searches and that the information gained from the search doesn’t affect the lending decision - it is only for standard fraud and identity checks.

 

[Frogmann]

I don’t see anything that would discourage applications. Can you point me to what you are referring to please?

I also don’t see any mention of credit checks, although it wouldn’t surprise me if they were doing them.

What I am referring to is on their application page when You click apply.

The HSBC Bounce Back Loans Scheme is one of a number of different options that could support you with your needs at this time.

There may be other options available to you which are more suitable for your borrowing or cash-flow needs. This could include, for example, an alternative lending product, considering repayment holidays on existing debt or exploring other government grants/schemes available. You should consider your options carefully before applying for this loan.

Please review our full range of products at Hsbc and other types of support at HSBC. Should you feel that another product is more suitable, the product webpages will advise on how you can apply for that.

If your application is successful, we may perform a credit check on you or your business as well as the individuals linked to that business such as partners or directors. Although we will not be using this credit data to assess your application, we need to undertake this in order to conduct our standard fraud checks. This will leave a record of an “enquiry” search on your credit records.

The searches will not have a negative impact on your credit score, but other lenders may take into consideration that a search has been conducted when making lending decisions. If several searches are performed in a short period of time, this can have a greater impact on a credit score and may impact an individual’s or business’s ability to successfully secure credit or quoted interest rates in the future.

We will also register an entry of the Bounce Back Loan with credit reference agencies.

 

[Mancunian]

Yes, I read that. It doesn’t read like it’s discouraging applications merely encouraging applicants to consider if this product meets their needs rather than an alternative.

 

[Frogmann]

Yes, I read that. It doesn’t read like it’s discouraging applications merely encouraging applicants to consider if this product meets their needs rather than an alternative.

Well, if it doesn't read like that to you, there's not much I can say. Did you see the credit searching/entry at the second time of reading?

 

[Frogmann]

I don't know of any HSBC existing product that is better than BBL. I have been with them for years

 

[The Soup Dragon]

When did you apply Frogmann?

 

[Mancunian]

Well, if it doesn't read like that to you, there's not much I can say. Did you see the credit searching/entry at the second time of reading?

I saw it when I applied last Monday.

They may have changed some wording, but nothing that materially affects the loan from what I can see.

 

[Frogmann]

When did you apply Frogmann?

I applied on Tuesday. HSBC are a joke, it's not so much the timeframe but the lack of communication. CBIL was already taking forever then I got an email on Tuesday saying because amount I wanted is less than 50k, I have to reapply under BBL, fair enough, but no communication since then. They have purposely worded the application page the way they did.

 

[The Soup Dragon]

I applied Monday about 3pm and an still twiddling my thumbs

 

[Frogmann]

I saw it when I applied last Monday.

They may have changed some wording, but nothing that materially affects the loan from what I can see.

They've changed the wording completely for a reason.

 

[Mancunian]

HSBC certainly seem to be the slowest to get the loans approved and sent out.

 

[trax7960]

They've changed the wording completely for a reason.

I’m not sure what point you’re trying to make - all of the info provided is correct; they’ll do an enquiry search and the loan itself will be linked to your credit file, and there may be better options than more debt.

All the banks are doing exactly the same thing, NatWest used the same wording on the application PDF, all HSBC are doing is being upfront about it.

 

[Mancunian]

HSBC in disarray over BBL, according to IFA Magazine.

I tried to post the link but I don’t have enough posts as yet.

 

[Frogmann]

I’m not sure what point you’re trying to make - all of the info provided is correct; they’ll do an enquiry search and the loan itself will be linked to your credit file, and there may be better options than more debt.

All the banks are doing exactly the same thing, NatWest used the same wording on the application PDF, all HSBC are doing is being upfront about it.

All the other products they mentioned = more debt too. Even payment holidays, BBL is interest-free but you still incur charges when you defer existing repayment.

Business loans aren't recorded on Directors credit file.

 

[Frogmann]

All the other products they mentioned = more debt too. Even payment holidays, BBL is interest-free but you still incur charges when you defer existing repayment.

Business loans aren't recorded on Directors credit file.

Interest free for the first year at least

 

[anonuk]

Business loans aren't recorded on Directors credit file.

No but they will be recorded on the Ltd company’s credit file.

 

[Gordon - Commercial Finance]

No but they will be recorded on the Ltd company’s credit file.

Just like all debt

 

[Frogmann]

Personally, what I can deduce from how HSBC has changed the content on their application page is that they want to put some doubt in potential applicants mind. No matter how to look at it, BBL is better than all their products, both in interest and the terms of the loan itself. Reporting loans on Ltd credit file and checking directors details for fraud is standard practice.

 

[Frogmann]

Personally, what I can deduce from how HSBC has changed the content on their application page is that they want to put some doubt in potential applicants mind. No matter how to look at it, BBL is better than all their products, both in interest and the terms of the loan itself. Reporting loans on Ltd credit file and checking directors details for fraud is standard practice.

The fact that HSBC hasn't come off the blocks quick in paying out is a testament that they are up to no good... no communication, nothing

 

[anonuk]

Just like all debt

Exactly my point

 

[The Soup Dragon]

I am thinking that if I don't hear from them ( HSBC ) early next week I am going to pull the application and go elsewhere

 

[Ian J]

The fact that HSBC hasn't come off the blocks quick in paying out is a testament that they are up to no good... no communication, nothing

It would be laughable if you weren't trying to be serious

 

[Mancunian]

The fact that HSBC hasn't come off the blocks quick in paying out is a testament that they are up to no good... no communication, nothing

Can you please define what you mean by ‘up to no good’?

 

[Mark T Jones]

What I am referring to is on their application page when You click apply.

The HSBC Bounce Back Loans Scheme is one of a number of different options that could support you with your needs at this time.

There may be other options available to you which are more suitable for your borrowing or cash-flow needs. This could include, for example, an alternative lending product, considering repayment holidays on existing debt or exploring other government grants/schemes available. You should consider your options carefully before applying for this loan.

Please review our full range of products at Hsbc and other types of support at HSBC. Should you feel that another product is more suitable, the product webpages will advise on how you can apply for that.

If your application is successful, we may perform a credit check on you or your business as well as the individuals linked to that business such as partners or directors. Although we will not be using this credit data to assess your application, we need to undertake this in order to conduct our standard fraud checks. This will leave a record of an “enquiry” search on your credit records.

The searches will not have a negative impact on your credit score, but other lenders may take into consideration that a search has been conducted when making lending decisions. If several searches are performed in a short period of time, this can have a greater impact on a credit score and may impact an individual’s or business’s ability to successfully secure credit or quoted interest rates in the future.

We will also register an entry of the Bounce Back Loan with credit reference agencies.

wow, you’re easily discouraged. What I’m seeing there is simple statements of fact from a responsible lender (though responsible and BBL don’t really go well together.

Only goes to show - offer some people a gift and they’ll just complain it’s the wrong colour.

 

[Frogmann]

wow, you’re easily discouraged. What I’m seeing there is simple statements of fact from a responsible lender (though responsible and BBL don’t really go well together.

Only goes to show - offer some people a gift and they’ll just complain it’s the wrong colour.

I agree with you, they are only simple statements of fact but why is it just going up on the applications page? Have they been irresponsible from last Monday up until yesterday? BBL is not a gift, it is a loan and it is the expected response from the government as a result of the lockdown. BBL is a loan that borrowers will have to pay back. We all pay our taxes. I get the point that the loan could be easily seen as a gift if your business has been affected very mildly. or not at all. Please don't say that to businesses that have been hit hard.

 

[anonuk]

I agree with you, they are only simple statements of fact but why is it just going up on the applications page? Have they been irresponsible from last Monday up until yesterday? BBL is not a gift, it is a loan and it is the expected response from the government as a result of the lockdown. BBL is a loan that borrowers will have to pay back. We all pay our taxes. I get the point that the loan could be easily seen as a gift if your business has been affected very mildly. or not at all. Please don't say that to businesses that have been hit hard.

BBL’s by nature are irresponsible, that’s why so many (me included) are able to apply for them when we would never be able to get such a loan under normal circumstances. That’s why they’ve been excluded from consumer protection, etc.