Bounce back loan declined, reason dormant (revenue went via another bank) account.

[rand24]

My question is,

Bank is saying that BBL is declined because they can't see revenue going via their bank. Is it a case of subjecting BBL application to affordability criteria?

As per BBB


May 21


Lenders cannot undertake credit checks or affordability checks under the Bounce Back Loan scheme. They can only undertake Anti-Money Laundering (AML) and Know Your Customer (KYC) checks - more commonly known as fraud and identity checks

 

[Ian J]

It isn't compulsory for the banks to offer you loans and they are possibly suggesting that you go to whichever institution that you bank with and ask them

 

[ecommerce84]

I’d consider it a fraud check - if you’re saying you have revenue of £100k and they see nothing through the account they may not be overly inclined to believe you.

I’d try the bank that provides the active account instead.

 

[Karimbo]

if bank with revenue is not one of the banks that are participating in the BBL scheme then OP is out of lick

 

[Aniela]

Lenders cannot undertake credit checks or affordability checks under the Bounce Back Loan scheme. They can only undertake Anti-Money Laundering (AML) and Know Your Customer (KYC) checks - more commonly known as fraud and identity checks

You're getting confused (as with a lot of other people) that a lender has to give you a BBL, if you apply and meet the criteria.

This is incorrect. What you reference above is purely what they can't do, in regards to seeing if you're eligible. Being eligible for something doesn't mean you will be offered/given it regardless.

They can choose to not lend to you for pretty much any reason they want, including situations where you aren't banking with them.

They have to still risk asses loans they give out. A bank lending money to a business that is showing 0 revenue via a dormant account is high risk. Some lenders will still lend to you in this situation if you provide revenue proof from accounts you use elsewhere.

 

[Karimbo]

Well the BBL is maxed out as a percentage of the revenue. it's not even part of AML checks, just the rudimentary eligibility check.

You can understand why banks would only offer BBL based on the revenue they can see in their own bank accounts, and not by the declared revenue in the annual accounts. Otherwise some delboy types would go around and get multiple loans out using the annual accounts.

 

[Mark T Jones]

The question not yet answered is what is the situation with your main bank?

whatever the ins and outs, the notion of forcing banks to lend is never, ever going to work

 

[Karimbo]

The question not yet answered is what is the situation with your main bank?

whatever the ins and outs, the notion of forcing banks to lend is never, ever going to work

I dont expect OP to come back, just joined to post that one post.

Loads of banks aren't participating in the BBL, it's just the main high street banks that are. There are loads of people using those internet only banks nowadays which is why they were trying to claim BBL though an inactive bank account.

 

[rand24]

Busy here. Yes using online neobank.

BBL scheme is self certified. BBB rules directly prohibit scheme participants to use an affordability criteria. Attempts to present it as a fraud check wont't fly as it is self certified.

Anything else that I missed?

 

[Mr D]

Busy here. Yes using online neobank.

BBL scheme is self certified. BBB rules directly prohibit scheme participants to use an affordability criteria. Attempts to present it as a fraud check wont't fly as it is self certified.

Anything else that I missed?

You are far from the first turned down.

In this case they say they can't see revenue? Is that correct?
Is the revenue going into the account at their bank?

 

[Aniela]

Busy here. Yes using online neobank.

BBL scheme is self certified. BBB rules directly prohibit scheme participants to use an affordability criteria. Attempts to present it as a fraud check wont't fly as it is self certified.

Anything else that I missed?

BBL scheme is self certified for eligibility for certain things. That does not mean you have to be offered a BBL.

Asking why there is not business transactions in your bank account has got nothing to do with affordability.

You seem to be going down the rabbit hole of "Am I being declined because they're breaking the rules" - When it's not even close to that. They just want to only offer it to their customers, and if you have a dormant account with no revenue, you clearly aren't a customer they want to offer it to.

 

[rand24]

You are far from the first turned down.

In this case they say they can't see revenue? Is that correct?
Is the revenue going into the account at their bank?

No. It is not a main business account.

 

[obscure]

No. It is not a main business account.

So no reason for them to want to lend you money.

 

[Mr D]

No. It is not a main business account.

Perhaps instead try at the place your main business account is with?

 

[Mattymoomoo]

We are banking through Tide (although that is being reconsidered). Had to apply through HSBC with a new feeder account for a BBL. Will see if it comes through.