Bounce back loan

The Soup Dragon · May 21, 2020

jxm28788 said:
As a customer or feeder account?

Customer

Rawlinson Pryde · May 21, 2020

Frogmann said:
Yippie...It's another few days for it to be accessible

I know of one business that is still waiting 12 days after signing with HSBC!

Applied 5 May, Signed 9 May, 21 May still no money.

Although Metro still haven’t got signed up to the scheme, so I feel for their customers!

anonuk · May 21, 2020

bodgitt&scarperLTD said:
Should have applied for the full 50k- its not like anyones checking from what I can make out.

Committing fraud yourself is one thing, but recommending that others do it because you did it is insanity at best.

jimbof · May 21, 2020

Rawlinson Pryde said:
Although Metro still haven’t got signed up to the scheme, so I feel for their customers!

I wonder if they'll actually get signed up? It seems odd that it has taken so long for them to have so little to say on the matter.

Rawlinson Pryde · May 21, 2020

jimbof said:
I wonder if they'll actually get signed up? It seems odd that it has taken so long for them to have so little to say on the matter.

Metro have applied and are still waiting to be approved. Surprised it has taken so long given others like Starling are signed up.

jimbof · May 21, 2020

Rawlinson Pryde said:
Metro have applied and are still waiting to be approved. Surprised it has taken so long given others like Starling are signed up.

Sorry, I should have been clearer. I'm aware of what they've been saying for pretty much as long as everyone else has been signed up for! Initially they seemed optimistic of having some significant news on the 11th May, and when it was obvious that date was going to come and pass they replaced it with the rather nebulous wording which gets parroted on their Twitter feed by the unlucky folk having to man it...

It almost seems like inspite of their protestations of having applied, there is something getting in the way of them getting access to the scheme - given that so many others have been signed up...

Rawlinson Pryde · May 21, 2020

jimbof said:
Sorry, I should have been clearer. I'm aware of what they've been saying for pretty much as long as everyone else has been signed up for! Initially they seemed optimistic of having some significant news on the 11th May, and when it was obvious that date was going to come and pass they replaced it with the rather nebulous wording which gets parroted on their Twitter feed by the unlucky folk having to man it...

It almost seems like inspite of their protestations of having applied, there is something getting in the way of them getting access to the scheme - given that so many others have been signed up...

Yes, I agree there, you would have thought it wouldn’t take that long to sign up since most of the other banks already have. Also poor for them as they pride themselves on customer service and this is when their customers need them!

Jag1990 · May 21, 2020

Received this text from Santander. Anyone know what it means?

“Thank you for your Bounce Back Loan Scheme application. We're currently working to help customers get access to the funds they need. We may need more information from you to process your application and we will contact you again with an update shortly. We're sorry for the delay.”

Applied on Friday

Mr D · May 21, 2020

Jag1990 said:
Received this text from Santander. Anyone know what it means?

“Thank you for your Bounce Back Loan Scheme application. We're currently working to help customers get access to the funds they need. We may need more information from you to process your application and we will contact you again with an update shortly. We're sorry for the delay.”

Applied on Friday

Sounds like an acknowledgement.

Jag1990 · May 21, 2020

Mr D said:
Sounds like an acknowledgement.

is that a standard message they send out? I thought they might be requesting more info, but I haven’t received any further email from them strangely :/

Mr D · May 22, 2020

Jag1990 said:
is that a standard message they send out? I thought they might be requesting more info, but I haven’t received any further email from them strangely :/

Just the way its worded.

Gordon - Commercial Finance · May 22, 2020

Saw on BBC news today a survey saying 43% of businesses have no intention of paying back their bounce back loans....

Worrying stat if it’s true

Darren_Ssc · May 22, 2020

Gordon - Commercial Finance said:
Saw on BBC news today a survey saying 43% of businesses have no intention of paying back their bounce back loans....

Worrying stat if it’s true

https://www.telegraph.co.uk/business/2020/05/21/firms-call-covid-loans-become-grants/

Maybe we should all be jumping on the band wagon/gravy train?

Ian J · May 22, 2020

jimbof said:
I wonder if they'll actually get signed up? It seems odd that it has taken so long for them to have so little to say on the matter.

It's highly possibly that Metro will have to be bailed out themselves which may be why they haven't joined the scheme

Gordon - Commercial Finance · May 22, 2020

Ian J said:
It's highly possibly that Metro will have to be bailed out themselves which may be why they haven't joined the scheme

Bit of a basket case even before the pandemic!

jimbof · May 22, 2020

Ian J said:
It's highly possibly that Metro will have to be bailed out themselves which may be why they haven't joined the scheme

If that is the truth behind the matter then their posts on the subject are highly disingenuous...

Mr D · May 22, 2020

Gordon - Commercial Finance said:
Saw on BBC news today a survey saying 43% of businesses have no intention of paying back their bounce back loans....

Worrying stat if it’s true

Not too far off from what we expect is it? Even with a quarter of last year's turnover as a chunk of (currently) free money being given there will be a chunk of businesses that will struggle. Some won't recover enough.
Able to pay the bills this year - but next year?

Gordon - Commercial Finance · May 22, 2020

Mr D said:
Not too far off from what we expect is it? Even with a quarter of last year's turnover as a chunk of (currently) free money being given there will be a chunk of businesses that will struggle. Some won't recover enough.
Able to pay the bills this year - but next year?

That comes down to ability to pay though. If the survey is to be believed (questionable?), then there is a lack of intention to pay, which is More worrying.

jimbof · May 22, 2020

Gordon - Commercial Finance said:
That comes down to ability to pay though. If the survey is to be believed (questionable?), then there is a lack of intention to pay, which is More worrying.

I'd love to know how the question was worded as the implication of that is that they are ultimately going to be folding or going bankrupt, as I can't see any other way out of them...

Perhaps in spite of the vocal population who are taking the cash as a free money grab and have healthy businesses with little need, most of the folk taking the debt are in businesses that are really very badly affected, and are very pessimistic about their future in business. Just a way of softening the exit in that case.

Gordon - Commercial Finance · May 22, 2020

jimbof said:
I'd love to know how the question was worded as the implication of that is that they are ultimately going to be folding or going bankrupt, as I can't see any other way out of them...

Perhaps in spite of the vocal population who are taking the cash as a free money grab and have healthy businesses with little need, most of the folk taking the debt are in businesses that are really very badly affected, and are very pessimistic about their future in business. Just a way of softening the exit in that case.

Yes unfortunately the news article doesn’t give the necessary details to actually judge what was actually surveyed (surprised?). However I would assume that limited companies being so foldable, and no guarantees on the loan there will be a lot of SpongeBobs...

Mr D · May 22, 2020

Gordon - Commercial Finance said:
That comes down to ability to pay though. If the survey is to be believed (questionable?), then there is a lack of intention to pay, which is More worrying.

Or perhaps those responding can guess future ability to pay.

You and I have businesses that will run. A café owner may take a loan - but does he have a business in the next couple of years if he doesn't change the way of working?

Mr D · May 22, 2020

jimbof said:
I'd love to know how the question was worded as the implication of that is that they are ultimately going to be folding or going bankrupt, as I can't see any other way out of them...

Perhaps in spite of the vocal population who are taking the cash as a free money grab and have healthy businesses with little need, most of the folk taking the debt are in businesses that are really very badly affected, and are very pessimistic about their future in business. Just a way of softening the exit in that case.

Indeed - the answer given depends on how the question is worded.
To get the answer you want, word the question a particular way...

gpietersz · May 22, 2020

Mr D said:
Indeed - the answer given depends on how the question is worded.
To get the answer you want, word the question a particular way...

Like this:

Gordon - Commercial Finance · May 22, 2020

gpietersz said:
Like this:

That is incredible, and actually a very useful example of the inherent danger or surveys and statistics!

jimbof · May 22, 2020

Gordon - Commercial Finance said:
That is incredible, and actually a very useful example of the inherent danger or surveys and statistics!

A bigger danger to be honest is the amount of surveys done by folk who have no understanding of matters such as sampling and statistical significance.

While I'm sure there are many question asked with a particular answer in mind, there are an equal if not greater number of folk who just don't know how to ask the question in a way to actually get a useful result.

Per Hanlon's Razor:
"Never attribute to malice that which is adequately explained by stupidity"

DTWatts · May 22, 2020

Just received a call from Barclays saying that our application for the BBL has been declined. We meet the criteria, we have no defaults or CCJ’s (not that they were credit checking anyway). They couldn’t give a reason and told to apply elsewhere, despite being a business customer for years. Has anyone else had a similar experience? Doesn’t make much sense

Ian J · May 22, 2020

DTWatts said:
Just received a call from Barclays saying that our application for the BBL has been declined. We meet the criteria, we have no defaults or CCJ’s (not that they were credit checking anyway). They couldn’t give a reason and told to apply elsewhere, despite being a business customer for years. Has anyone else had a similar experience? Doesn’t make much sense

Or wouldn't give a reason perhaps. Was the amount that you asked for up to 25% of your genuine turnover?

Mr D · May 22, 2020

DTWatts said:
Just received a call from Barclays saying that our application for the BBL has been declined. We meet the criteria, we have no defaults or CCJ’s (not that they were credit checking anyway). They couldn’t give a reason and told to apply elsewhere, despite being a business customer for years. Has anyone else had a similar experience? Doesn’t make much sense

Congratulations you are the first I can recall getting turned down for BBL.
Ex bankrupt, loads of credit, poor payment history - they all seem to get it. Like government were chucking away money for firelighting.

glengraving · May 23, 2020

Sounds like a sweet deal.
My question is this - if a (sole-trader) business changes hands a year or two into the loan, can this debt be transferred to the new owner, and how would that work?

Ian J · May 23, 2020

glengraving said:
if a (sole-trader) business changes hands a year or two into the loan, can this debt be transferred to the new owner, and how would that work?

No. You can only transfer assets and not liabilities which remain with you

Maxwell83 · May 23, 2020

glengraving said:
Sounds like a sweet deal.
My question is this - if a (sole-trader) business changes hands a year or two into the loan, can this debt be transferred to the new owner, and how would that work?

Not a chance. When it's a S.Trader, the loan is to the 'person'. They can't transfer that no matter what happens to the business.

Frogmann · May 23, 2020

Rawlinson Pryde said:
I know of one business that is still waiting 12 days after signing with HSBC!

Applied 5 May, Signed 9 May, 21 May still no money.

Although Metro still haven’t got signed up to the scheme, so I feel for their customers!

Looks like you are right.

gpietersz · May 23, 2020

Ian J said:
No. You can only transfer assets and not liabilities which remain with you

So it would be a difficulty if you set up a new legal entity for your business? Its something I may want to do (not soon, but very likely within the term of the loan).

Newchodge · May 23, 2020

gpietersz said:
So it would be a difficulty if you set up a new legal entity for your business? Its something I may want to do (not soon, but very likely within the term of the loan).

The new legal entity could 'pay' the sole trader for the outstanding loan, as an asset of the business, but the sole trader would still be responsible for repayments.

mysteron69 · May 23, 2020

So I have a situation, where a business I own was being sold to a local guy for £85K. He has put the transaction on hold, whilst this is upon us. The business is a Limited Company, and really needs a BBL to make sure of suviving, as its core business has been forcibly closed, for now.

I assume if he continues to buy the business in say 9-12 months time the debt will transfer with the Limited Company? I have no issue disclosing all this to him, as part of a new negotiation, but what happens if we get 12 - 18 months down the road and he fails to pay the BBL...is there any comeback on me at that point? Advice would be appreciated...

Ian J · May 23, 2020

mysteron69 said:
So I have a situation, where a business I own was being sold to a local guy for £85K. He has put the transaction on hold, whilst this is upon us. The business is a Limited Company, and really needs a BBL to make sure of suviving, as its core business has been forcibly closed, for now.

I assume if he continues to buy the business in say 9-12 months time the debt will transfer with the Limited Company?

If he buys the shares of your limited company then he is buying the liabilities as well as the assets and that includes the liability to repay the loan

gpietersz · May 23, 2020

mysteron69 said:
I assume if he continues to buy the business in say 9-12 months time the debt will transfer with the Limited Company?

The loan will be to the limited company, not to you personally so will go with it. BBL will not come back to you as there is no personal guarantee required.

mysteron69 · May 23, 2020

thanks guys

jimbof · May 23, 2020

Ian J said:
It's highly possibly that Metro will have to be bailed out themselves which may be why they haven't joined the scheme

The wording on Metrobank's website has just changed significantly, all reference referring to their application to BBLS removed and now just saying that:
"
Can I apply for a Bounce Back Loan from Metro Bank?

We are currently working on our Bounce Back Loan application system. When our applications open, we will be using the Bounce Back Loan Scheme as widely as possible to support our existing SME customers."

Not sure if the implication is they've been approved. They're certainly not showing on the British Bank website as of yet.

Aniela · May 23, 2020

gpietersz said:
The loan will be to the limited company, not to you personally so will go with it. BBL will not come back to you as there is no personal guarantee required.

No personal guarantee is required to apply for the loan. That's different to ever being personal liable for the loan after the fact.

You could still end up personally liable to pay it if the company goes into liquidation and it's seen that the loan was abused or used outside of the terms.

If you normally pay yourself a wage of £10,000 and then give yourself a wage of £50,000 (what wasn't originally planned), which isn't allowed, you would be working outside the scope of the BBL and therefor could be seen to not have been working in the interest of the company.

So you can actually end up being personal liable.

Cookie Consent

Essential

Analytics

Marketing

Bounce back loan

Darren_Ssc