Bounce Back Loan and Companies House Dissolution / Strike Off - my story.

[kendonagasaki]

Hi

New member - just joined to explain what has happened to myself.

I took out a BBL for my company of 18 years that was suffering due to covid (we were told to close by the government - but landlord continued to charge full rent ) - I struggled on for almost 12 months but unfortunately just couldn't keep going - the debts were too much and couldn't afford ongoing rent as well as what was owed.

I closed the business (Ltd Company - with Santander Business Account in Ltd Company Name) - my accountant applied to companies house (or whoever you apply to) for company to be closed / struck off.

The only money the company owed was the BBL and also some to British Gas Business (I sent them both a letter saying business had closed - never heard from British Gas again)

Santander Objected to this - it doesn't say who objected on companies house but I maintained regular contact with Santander throughout as they had been excellent for myself and the business over the many years I have used them - and they told me it was them.

My accountant NEVER applied for another strike off after the first one was submitted (I think it just "auto renews" every few months if that makes sense.

After all that happened I did nothing.

I maintained contact with Santander on a monthly basis - again they were supportive and fully understood my situation all the way along.

Then in May 2022 - some 8/9 months after the initial strike off request - I logged in to companies house to see this "Final Gazette dissolved via voluntary strike-off"

I rang Santander and they said that was the end of everything - company was closed - and they would apply to government for the amount owed - it wasn't the full amount of £50,000 - but wasn't far off - I had already sent them a breakdown of what the BBL was used for (ie stock to keep company going / wages / some rent etc etc - don't know if I was supposed to do this but just wanted to be transparent)

I thought this may help some in what for me was a very very desperate situation I found myself in - I not only lost my business but also my home (I lived above in a flat with my family) - any questions I will try and answer them.

I have suffered both financially and also mentally in the last 12 months. It has been awful. But there is light at the end of the tunnel.

What happened to me goes against everything my Parents ever taught me "never a borrower or a lender be" - it worked for me for years - until COVID struck - the guilt I felt about the money owed was just awful - and still is to some degree.

 

[ChrisCallaghan]

Thank you for sharing your story. I hope others in your position find this helpful.

 

[Mark T Jones]

My personal take is that the whole lockdown scenario is the only time where 'not my fault' is a legitimate cause of business failure

You took out a loan in good faith and used it for its intended purpose (trying to keep the business afloat).

Ultimately it didn't work out - not your fault, you can hold your head up and move on

 

[ChrisCallaghan]

My personal take is that the whole lockdown scenario is the only time where 'not my fault' is a legitimate cause of business failure

You took out a loan in good faith and used it for its intended purpose (trying to keep the business afloat).

Ultimately it didn't work out - not your fault, you can hold your head up and move on

Very well said Mark.

 

[SillyBill]

Really sorry to hear this. Hopefully you have found work since and finding it okay, must be a shock after 18 years on your own. Agree with Mark too, COVID benefited a lot of businesses (mine too in the end) but I spare a thought often to those not so lucky like yourselves where it decimated the business. I can't imagine what it'd be like to lose everything when you've got no control over the outcome. That is a special kind of tough.

 

[Elliot Green]

The key problem with the Bounce Back Loans is not that they are not repaid per se but:

1. If the application for the loan was made without the requisite turnover.
2. If its deployment led to funds being improperly appropriated based on the rules of the scheme.

 

[kendonagasaki]

Thank you for sharing your story. I hope others in your position find this helpful.

Yes me too - it's been the most stressful time of my life.

 

[kendonagasaki]

My personal take is that the whole lockdown scenario is the only time where 'not my fault' is a legitimate cause of business failure

You took out a loan in good faith and used it for its intended purpose (trying to keep the business afloat).

Ultimately it didn't work out - not your fault, you can hold your head up and move on

Thank you for the kind words.

It will probably stay with me forever to be honest - just a horriffic situation all round.

 

[kendonagasaki]

Really sorry to hear this. Hopefully you have found work since and finding it okay, must be a shock after 18 years on your own. Agree with Mark too, COVID benefited a lot of businesses (mine too in the end) but I spare a thought often to those not so lucky like yourselves where it decimated the business. I can't imagine what it'd be like to lose everything when you've got no control over the outcome. That is a special kind of tough.

Hi

Thanks for the kind words.

There is more to the whole story (relationship breakdown - ill health etc etc) - but those details were not important to why I posted this - it was just to hopefully give some light at the end of the tunnel to those going through the same thing.

I know it wont work for everybody - and Santander Business were brilliant all the way through - so hats off to them.

I have a credit card (personal) and a mortgage with them - and during our conversations they even offered help with those things as well.

Sadly my age and current health means no work at the moment - but in the next 12 months I hope to be back on my feet again.

 

[getsetgonline]

I find myself in a similar situation.

My primary business, a travel company, has not recovered and we are being struck off and BBL will not be paid. It really does pain me as I have always endeavoured to pay bills and invoices on time but we have been crippled by our suppliers not refunding us and being subject to chargebacks which the BBL was largely used for.

It's nearly over 2 years since any sales went through the company and I have fought to try and get it going again but the way marketing costs have sky rocketed and competitors (much larger organisations than mine) have taken outside investment.

I have managed to keep my head above water by operating walking tours this summer and last and through the winter I did some web design work. As the walking season ends I am again in a predicament of finding an income and am setting up weekend football break trips - I just can't stay away from industry which has been in my blood for 20 years.

I must admit I am terrified for the coming months incase it doesn't work as my confidence has taken a massive hit over the last few years. I've considered pitching for marketing and web dev work as those were my primary skills but anyone who runs a business knows how saturated this market is with the sheer number of daily emails and calls received.

 

[SillyBill]

I must admit I am terrified for the coming months incase it doesn't work as my confidence has taken a massive hit over the last few years. I've considered pitching for marketing and web dev work as those were my primary skills but anyone who runs a business knows how saturated this market is with the sheer number of daily emails and calls received.

Some trepidation is healthy, and normal. Perhaps consider a job like being a courier driver with Evri for a few months or a year while you build your confidence back up, that is hard work in itself but it may give your brain a bit of time to process things, re-charge your batteries and decide what you want to do in the next chapter. Perhaps jumping into something else on your own right now isn't the way to go, could knock your confidence further if you're fragile and a more regular guaranteed income will take some off the stress away. I think travel could be tough next year with the energy bills exploding later in the year and across next, perhaps sit tight, allow a recession to do its work and come back into a more stable market again in 2024 onwards. And it appears you still have the appetite for it from what you allude to, so take a hiatus IMO, don't consider it a failure to do so either. Plenty have before you.

 

[Mark T Jones]

I find myself in a similar situation.

My primary business, a travel company, has not recovered and we are being struck off and BBL will not be paid. It really does pain me as I have always endeavoured to pay bills and invoices on time but we have been crippled by our suppliers not refunding us and being subject to chargebacks which the BBL was largely used for.

It's nearly over 2 years since any sales went through the company and I have fought to try and get it going again but the way marketing costs have sky rocketed and competitors (much larger organisations than mine) have taken outside investment.

I have managed to keep my head above water by operating walking tours this summer and last and through the winter I did some web design work. As the walking season ends I am again in a predicament of finding an income and am setting up weekend football break trips - I just can't stay away from industry which has been in my blood for 20 years.

I must admit I am terrified for the coming months incase it doesn't work as my confidence has taken a massive hit over the last few years. I've considered pitching for marketing and web dev work as those were my primary skills but anyone who runs a business knows how saturated this market is with the sheer number of daily emails and calls received.

Obviously I don't know your personal/financial needs, but there is currently a lot of unskilled work available - if you go through an agency you can effectively dip in and out, choosing which/how many days you work on a weekly basis.

I've used a driving agency to keep me occupied whilst refocusing my business (and during lockdown)- which was very useful

 

[Frank Wessely]

I find myself in a similar situation.

My primary business, a travel company, has not recovered and we are being struck off and BBL will not be paid. It really does pain me as I have always endeavoured to pay bills and invoices on time but we have been crippled by our suppliers not refunding us and being subject to chargebacks which the BBL was largely used for.

It's nearly over 2 years since any sales went through the company and I have fought to try and get it going again but the way marketing costs have sky rocketed and competitors (much larger organisations than mine) have taken outside investment.

I have managed to keep my head above water by operating walking tours this summer and last and through the winter I did some web design work. As the walking season ends I am again in a predicament of finding an income and am setting up weekend football break trips - I just can't stay away from industry which has been in my blood for 20 years.

I must admit I am terrified for the coming months incase it doesn't work as my confidence has taken a massive hit over the last few years. I've considered pitching for marketing and web dev work as those were my primary skills but anyone who runs a business knows how saturated this market is with the sheer number of daily emails and calls received.

Hi getsetgonline, sorry to read about your experience. I expect that due to the BBL the Bank will object to the strike off, the process will be suspended and the company will just sit there for some considerable time to come.

During the pandemic I worked with a travel business and raised £250k from a Regional Investment Fund which essentially saved them. Naturally each situation is different, there can be no promises and yours may be irretrievable but if you would like to have a call with me and the broker who worked on that case I am happy to arrange.

Regards, Frank.

 

[getsetgonline]

Perhaps consider a job like being a courier driver with Evri for a few months or a year while you build your confidence back up, that is hard work in itself but it may give your brain a bit of time to process things, re-charge your batteries and decide what you want to do in the next chapter. Perhaps jumping into something else on your own right now isn't the way to go, could knock your confidence further if you're fragile and a more regular guaranteed income will take some off the stress away. I think travel could be tough next year with the energy bills exploding later in the year and across next, perhaps sit tight, allow a recession to do its work and come back into a more stable market again in 2024 onwards. And it appears you still have the appetite for it from what you allude to, so take a hiatus IMO, don't consider it a failure to do so either. Plenty have before you.

I will still have our walking trips for next year and bookings start coming in in Autumn so the football ticket and hotel packages will see us through hopefully. I tend to specialise in event focused travel as opposed to a typical package holiday - this market is very tough. I have many good contracts in place which allows us to sell a weekend break but also to the lucrative corporate market.

The walking trips have been great this year and I thoroughly enjoy running them which has helped. My fragility is caused by looking back at what has happened after running a company for such a period of time.

I do have many other skills such as marketing, e-commerce optimisation and automation which I can turn too along side the football breaks. Having worked for myself for 25 years, I am determined to make a go of it.

I need to change my mindset and stop looking back at what has happened as can't change the past. It has to be onwards and upwards. I've become so entrenched in looking back it has dragged me down. The initial post I made was on a very bad day....I am not and will not be beaten!

During the pandemic I worked with a travel business and raised £250k from a Regional Investment Fund which essentially saved them. Naturally each situation is different, there can be no promises and yours may be irretrievable but if you would like to have a call with me and the broker who worked on that case I am happy to arrange.

Thanks Frank. The other business is dead so have to let it run its course - understand it will take some time and we need the bank to apply to liquidate. I am now in the travel/leisure market so not strictly selling packages anymore, and will never return to that I don't think.

 

[Frank Wessely]

I will still have our walking trips for next year and bookings start coming in in Autumn so the football ticket and hotel packages will see us through hopefully. I tend to specialise in event focused travel as opposed to a typical package holiday - this market is very tough. I have many good contracts in place which allows us to sell a weekend break but also to the lucrative corporate market.

The walking trips have been great this year and I thoroughly enjoy running them which has helped. My fragility is caused by looking back at what has happened after running a company for such a period of time.

I do have many other skills such as marketing, e-commerce optimisation and automation which I can turn too along side the football breaks. Having worked for myself for 25 years, I am determined to make a go of it.

I need to change my mindset and stop looking back at what has happened as can't change the past. It has to be onwards and upwards. I've become so entrenched in looking back it has dragged me down. The initial post I made was on a very bad day....I am not and will not be beaten!



Thanks Frank. The other business is dead so have to let it run its course - understand it will take some time and we need the bank to apply to liquidate. I am now in the travel/leisure market so not strictly selling packages anymore, and will never return to that I don't think.

Hi getsetgonline, that's fair enough. It will be interesting to see how the strike-off process takes shape. If there are any delays or objections from the Bank in due course, feel free to give me a call to discuss your options.

Regards, Frank.

 

[kendonagasaki]

Hope everyone struggling gets through the process.

With the advent of the fuel crisis - it can only mean more companies sadly going to the wall.