BBLS Loan if you had an online account like Cashplus?

Discussion in 'COVID-19 Forum' started by Lomaximus, Jul 8, 2020.

  1. Lomaximus

    Lomaximus UKBF Newcomer Free Member

    14 3
    Hi all!!

    Does anyone know if there is anything being done with the BBLS loans for businesses that used online banks that are not registered for BBLS? We used Cashplus and Tide for our banking because it was convenient when we set up however now we want to take advantage of the BBLS loan and neither are offering it. Cashplus just dont do it and Tide as of yesterday ran out of funding to provide them. None of the mainline banks are accepting new bank account applications at the moment apart from TSB but you have to sign a waiver that you will not apply for BBLS if they give you an account. We signed up with Starling and have an account with them but we are in a waiting list so I suspect that they will also run out of funding. Bit stuck at the moment. Thanks
     
    Posted: Jul 8, 2020 By: Lomaximus Member since: Apr 2, 2020
    #1
  2. Mr D

    Mr D UKBF Legend Free Member

    27,216 3,342
    Have you asked the banks you use to consider signing up for BBLS?

    Wasn't HSBC doing a new account for people to then apply for BBLS a few weeks back? If they've stopped doing that then sorry too late.
     
    Posted: Jul 8, 2020 By: Mr D Member since: Feb 12, 2017
    #2
  3. Lomaximus

    Lomaximus UKBF Newcomer Free Member

    14 3
    Hi Cashplus have been knocked back apparently. Yes we applied to HSBC but they also wanted us to sign a waiver of not applying for BBLS. :(
     
    Posted: Jul 8, 2020 By: Lomaximus Member since: Apr 2, 2020
    #3
  4. Alison Moore

    Alison Moore UKBF Enthusiast Full Member

    734 161
    Cashplus isn't yet a 'bank', they were applying for bank status last time I heard, but hadn't got it, so that probably the problem there. I guess it depends if the Treasury extends the loans and puts more pressure on the banks to help businesses - it's a little late to the party now though, with businesses reopening, the government help is be slowing down and they're expecting businesses to stand on their own two feet again.
     
    Posted: Jul 8, 2020 By: Alison Moore Member since: Aug 4, 2016
    #4
  5. Lomaximus

    Lomaximus UKBF Newcomer Free Member

    14 3
    Hi Yes I'm a bit annoyed we applied with our current account with tide 8 weeks ago and have been sitting patiently only to get a letter yesterday to say they have run out of funding!
     
    Posted: Jul 8, 2020 By: Lomaximus Member since: Apr 2, 2020
    #5
  6. Lomaximus

    Lomaximus UKBF Newcomer Free Member

    14 3
    Just had a clarification from Tide to say they are paused and are in talks with the treasury to provide funding. So fingers crossed might be covered there.
     
    Posted: Jul 8, 2020 By: Lomaximus Member since: Apr 2, 2020
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  7. Mr D

    Mr D UKBF Legend Free Member

    27,216 3,342
    Don't bet on money though - banks borrow from central bank, not treasury usually. Can be done but should be exceptional circumstances.

    The rules appear to have been looser the first week the loans were available. With banks learning since and tightening up on fraud and even requirement to lend.
    Delaying applying may have lost you the chance.
     
    Posted: Jul 8, 2020 By: Mr D Member since: Feb 12, 2017
    #7
  8. JEREMY HAWKE

    JEREMY HAWKE UKBF Legend Full Member

    5,565 1,991
    I am going to be blunt about this
    If a company or person is struggling to get a BBL then you could probably guess that they would struggle to get any kind of loan or lending facility

    The system is working because it means that they cant put themselves at further financial risk .
    When the loan is due for payment and a persons track record is poor it would be highly likly that the BBL would not be paid each month
     
    Posted: Jul 9, 2020 By: JEREMY HAWKE Member since: Mar 4, 2008
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  9. Mark T Jones

    Mark T Jones UKBF Big Shot Free Member

    5,376 2,186
    Funding Circle are now offering BBLs
     
    Posted: Jul 9, 2020 By: Mark T Jones Member since: Nov 4, 2015
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  10. jimbof

    jimbof UKBF Regular Free Member

    253 52
    Posted: Jul 9, 2020 By: jimbof Member since: Apr 10, 2020
    #10
  11. Mr D

    Mr D UKBF Legend Free Member

    27,216 3,342
    Though to be fair, its a similar position to a lot of the banks.
    Existing customers only.... if you meet criteria.
     
    Posted: Jul 9, 2020 By: Mr D Member since: Feb 12, 2017
    #11
  12. Porky

    Porky UKBF Regular Full Member

    244 106
    Hi

    That’s a real shame as i think you will be hard pushed to secure a more attractive deal than the BBL deal.

    Only thing I can suggest is you try and find a local lender rather than a high street bank such as BCRS if you are in the Midlands or similar elsewhere.

    Funding circle as suggested or possibly call one of the smaller banks like metro where you can talk to someone, explain your position and see if they will be sympathetic to your situation. If you have run your account well maybe they will consider you but as outlined practically all banks are looking after own clients first where the history is known. I think this is the right call, just bad luck for you with cash plus.

    Good luck
     
    Posted: Jul 9, 2020 By: Porky Member since: Dec 27, 2019
    #12
  13. Red Wood

    Red Wood UKBF Regular Free Member

    601 72
    We can get a BBL with our biz, but haven't applied yet. We were going to leave it until the last minute to let the market settle as much as possible and maximise the interest-free period, but reading the above I'm thinking maybe a bird in the hand is worth 2 in the bush... thoughts?
     
    Posted: Jul 9, 2020 By: Red Wood Member since: Jan 14, 2014
    #13
  14. Aniela

    Aniela UKBF Enthusiast Free Member

    711 94
    This correct and incorrect. There are reasons on the lenders/banks side why they're declining people also.

    If you're in a high risk industry such as tourism, even with stellar revenue/profits recently and no black marks on your credit history etc, you may still be declined even if eligible.

    Or the lender has a set limit they intend to lend out and you just happen to be one of the people they decline because they can't accept everyone.

    People do seem to be forgetting that just because you're eligible for a BBL and tick all the marks... doesn't mean you can get one. There is no rule or law that states that if you meet the requirements, you are guaranteed a BBL.

    The government never made that clear and have made the lenders look like the bad guys. A lender can decline you for whatever reason they wish.
     
    Posted: Jul 9, 2020 By: Aniela Member since: Mar 28, 2020
    #14
  15. Aniela

    Aniela UKBF Enthusiast Free Member

    711 94
    If you feel like you may require it, it's worth applying now in my opinion. You may get declined for a BBL, and then will need to look into other lenders, potentially causing further delays.
     
    Posted: Jul 9, 2020 By: Aniela Member since: Mar 28, 2020
    #15
  16. Red Wood

    Red Wood UKBF Regular Free Member

    601 72
    We don't require it, but the terms are too good to turn down. Yes, I'm inclined to agree with you, however, we are with one of the major banks so I'm not particularly worried about them hitting a funding limit. in regards to their BBL facilities.
     
    Posted: Jul 9, 2020 By: Red Wood Member since: Jan 14, 2014
    #16
  17. Mr D

    Mr D UKBF Legend Free Member

    27,216 3,342
    It appears from what has been said here and elsewhere that since it came out there has been some tightening up. Perhaps more over time as banks try and reduce fraud with their money. Apply then sit on the money - least it's there for use. Besides, opportunity may present itself as businesses go to the wall or someone tries to avoid shutting.
     
    Posted: Jul 9, 2020 By: Mr D Member since: Feb 12, 2017
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  18. Aniela

    Aniela UKBF Enthusiast Free Member

    711 94
    You can be declined for multiple reasons, not just their funding limit. What industry you're in, how many other people in your industry have applied etc. The big banks have been declining lots of eligible businesses.

    If you don't need it, you may technically not be eligible and when it comes to any spot checks they may do down the road, you could be in a bad situation.

    To be eligible one of the requirements is that the business 'has been adversely impacted by the coronavirus' - If you plan to sit on the money for months and months or just use it to 'grow' the business as it's pretty much free money, you're likely breaking the terms.

    It would be hard to justify that your business was 'adversely impacted by the coronavirus' if you sat on the money for 10 months. 'Adversely impacted' is a little open to interpretation but I wouldn't want to get into a battle with the government on what that means.

    Edit: I personally believe that when the re-payment issues start coming in, which will likely be a high percentage, you'll see the government really drilling into businesses on what basis the loan was applied for, what it was used for etc. They're going to want to not pay back as much money as they can.
     
    Posted: Jul 9, 2020 By: Aniela Member since: Mar 28, 2020
    #18
  19. Mr D

    Mr D UKBF Legend Free Member

    27,216 3,342
    Lots of businesses can be negatively impacted by the virus. But not need it.

    Say a seller with online plus market stall. One gets a boost, one gets locked down. They are negatively impacted by the virus due to the market stall. Doesn't mean to say they need the money - perhaps they'll use it to grow. Perhaps they'll use it to invest in stuff that would have allowed them to trade on the market. Food stalls were allowed in many places.
     
    Posted: Jul 9, 2020 By: Mr D Member since: Feb 12, 2017
    #19
  20. Alison Moore

    Alison Moore UKBF Enthusiast Full Member

    734 161
    I'm not sure the loan is there for anyone who feels its worth applying as the terms are good. It's there for people who need it to survive, so if you're applying but the banks can see that your business hasn't been seriously effected by the lockdown and the virus, then you're most likely not going to get approved. This will be why there are no funds left in the coffers either for those businesses who genuinely need it.
     
    Posted: Jul 10, 2020 By: Alison Moore Member since: Aug 4, 2016
    #20