bounce back loan top up's REJECTED

[dafcjim]

Hi there

I've just been rejected a for a top by Lloyds bank for reasons I do not understand as none of the below apply to me?.


Sorry, we can't proceed with your application.
This could be for one of the following reasons:

• you've already applied for a top-up

• you've already borrowed the maximum amount allowed under the scheme

• the maximum top-up amount you're eligible for is less than £1,000, which is the minimum top-up amount allowed under the scheme

• you haven't got an existing Bounce Back Loan

• you've already repaid your original loan.
  
  Having spoke to the business customer services they advised then can't see why this has been rejected and that I will have to appeal at a later date.
  
  anybody else had this problem or know what it could be?
  
  very frustrated mall business owner

 

[Aniela]

Is it possible it's the "you've already borrowed the maximum amount allowed under the scheme" section?

I've seen some people confused about the fact that the amount you wish to topup, can't be more than 25% of the turnover, that you submitted on the original loan application.

It doesn't mean that if you borrowed £30,000, you can automatically borrow another £20,000.

If £30k was the full 25% of turnover, you can't top up more.

 

[Gordon - Commercial Finance]

I got a message from my bank saying because my existing loan plus the minimum £1,000 top up would take me over 25% of the turnover I stated on the application, I couldn't apply for more.

The message was very careful to point out that the government's rules for the scheme do not allow you to re-state your turnover.

 

[Mr D]

I got a message from my bank saying because my existing loan plus the minimum £1,000 top up would take me over 25% of the turnover I stated on the application, I couldn't apply for more.

The message was very careful to point out that the government's rules for the scheme do not allow you to re-state your turnover.

Umm....yes can imagine some would try increasing their 2019 turnover for the offer of free money.

Banks wising up.

 

[Gordon - Commercial Finance]

Umm....yes can imagine some would try increasing their 2019 turnover for the offer of free money.

Banks wising up.

Absolutely. Loads of people will have seen how easy it was to get the money and heard stories of their friends using extremely optimistic projections for turnover and they will be wishing they asked for more!

 

[gpietersz]

Loads of people will have seen how easy it was to get the money and heard stories of their friends using extremely optimistic projections for turnover

If a business was established before Jan 2019 they are supposed to use their historic turnover. For most businesses turnover is a straightforward number.

So, unless its for a business established in 2019 or early 2020 an "optimistic projection" is going to be a lie?