Bounce back loan
- Thread starter OMGVape
- Start date
Oh don’t get me wrong, I’m not one of the “everyone is a scumbag” group. I do think the vast majority will take these loans out in good faith (or at least the best faith they can right now) and will use them for the intended purpose.
I just think that hoping HMRC will investigate every default is wishful thinking. 200k applications already, probably over 500k by the end of the month. Even a 5% default rate would require 25,000 investigations to be carried out - paid for by whom?!
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Just been emailed the final agreement from Natwest and have signed it. So timeline for Natwest for me as follows:
Afternoon on 6/5/20- received a call from a helpful lady at NatWest (I'd already been in touch with them about changing a personal overdraft that I'd used as a business facility into a proper business facility in light of recent changes to personal overdraft rates). I hadn't realised how easy the BBLS was to apply for, she suggested it would be better than the overdraft facility and emailed me the link. Perhaps this suggests that banks are actively promoting these fully backed loans?
Evening on 6/5/20- Sent off the initial application registering interest.
05:30 on 7/5/20- Received the sign in link for the proper application. Filled in and submitted.
09:00 on 7/5/20- Signed the final agreement and received confirmation.
Watch this space...
Afternoon on 6/5/20- received a call from a helpful lady at NatWest (I'd already been in touch with them about changing a personal overdraft that I'd used as a business facility into a proper business facility in light of recent changes to personal overdraft rates). I hadn't realised how easy the BBLS was to apply for, she suggested it would be better than the overdraft facility and emailed me the link. Perhaps this suggests that banks are actively promoting these fully backed loans?
Evening on 6/5/20- Sent off the initial application registering interest.
05:30 on 7/5/20- Received the sign in link for the proper application. Filled in and submitted.
09:00 on 7/5/20- Signed the final agreement and received confirmation.
Watch this space...
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If you have any personal debt issues, Iva/debt management plan etc that rules you out even if your business is now successful.
Whilst I understand the reason it rules them out potentially it’s harsh as they may have had debt trouble for any unavoidable reason. I know someone who had a bad devorce and ended up in an Iva 4 years ago but has since started building a profitable business.....
If it’s a business loan should personal issues from years gone by rule you out??
Whilst I understand the reason it rules them out potentially it’s harsh as they may have had debt trouble for any unavoidable reason. I know someone who had a bad devorce and ended up in an Iva 4 years ago but has since started building a profitable business.....
If it’s a business loan should personal issues from years gone by rule you out??
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Well I could not have had an easier time of it. Applied on Monday 7.45 to NatWest where I have an account. Asked very little, Name, acc no and loan amount required. Tuesday 9.45 received the Customer Application where much more detail was asked for. Yesterday 17.51 received acceptance. Today 10.51 advised Executed agreement has been posted.
I see Natwest is being vilified but I'm happy.
I see Natwest is being vilified but I'm happy.
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I'd be interested to know what your actual turnover is, if applying for the 50k is abuse.I'll take the chance. I can't see them giving a damn so long as it's paid back-government money is only subsidising the first year as far as I can see.
I've just signed the PDF with NatWest for the full 50k. Applied last night, email to with link to sign arrived 5AM this morning and luckily I was already at the yard.
I take Clinton's point about self cert being open to abuse, and am technically doing it myself. But I missed the boat on self cert mortgages due to my age, and got royally ****ed by house prices since, so this is my bite of the cake as far as I'm concerned.
I'm a sole trader with assets already exceeding 100k. I will use the 50K to pay off around 15k of finance at higher rates, and the rest will be used essentially as dirt cheap asset finance on things you can't normally get good rates on- second hand machines, small petrol tools, maybe a new trailer, a new lathe, that sort of thing. They can't take my house, so I'm happy with the risk profile as it's nothing I don't already do with assets currently on finance. Finance deals on new machines are secured against the machine, this loan is effectively secured against other machines I already own and will be used to buy more of the same.
It's about as close to responsible abuse of the scheme as you can get.
Also, just to prove I'm not a total system abusing ******, I'll also give my sole employee (who really is very good) a pay rise despite the ongoing crap (we're still as busy as ever) There you go Boris- trickle down effect!
The risk as you put it is not just a financial one but you could be prosecuted for fraud if caught/found out.
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The only questions about any debt management plan are referring to the company (if limited). If you're a sole trader, they will apply to the sole trader.
However, the government removed the restriction on companies/sole traders 'in difficulties', so now all can apply.
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After being on hold for 3 hr and 40 minutes to Barclays, I finally got through to someone. I explained that I had spoken to someone yesterday in CS who said they had put through an application on my behalf (I was dubious) said I would receive a text confirming within the next hour... that didn't happen.
He explained that they can't make applications on our behalf and I had been wrongly advised. It seems that they are now referring applications to a special department for those of us who can't apply online (for reasons still unknown), so my application has been referred and can expect a call mid next week to go through the application with someone over the phone. Not a great outcome, but I guess it's better than nothing. It sounds like the online application saga isn't going to be sorted out any time soon
Happy B/H everyone
He explained that they can't make applications on our behalf and I had been wrongly advised. It seems that they are now referring applications to a special department for those of us who can't apply online (for reasons still unknown), so my application has been referred and can expect a call mid next week to go through the application with someone over the phone. Not a great outcome, but I guess it's better than nothing. It sounds like the online application saga isn't going to be sorted out any time soon
Happy B/H everyone
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like I said, I’ll take my chances. Thousands could have been prosecuted for fraud after submitting self cert mortgages, but that didn’t happen.
My turnover for year ending March 2019 was 120k and profit £46k. I reckon I’m a safe bet, asset finance companies seem to think so. There’s loads of small assets that won’t loose too much value (or none if bought secondhand) that I can’t justify on their own, but spread over 5 years will pay their way easily. A new lathe for 5k is top of list I think. Also diesel is cheap at the moment, so a secondhand tank and 5000l sounds like a good investment. I use that in a year, it’s as cheap as it’s likely to get currently and the loan is free for the first year!
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Looks like the BBB are just adding providers as soon as their forms are checked, regardless of whether they're ready to lend;
Co-Operative added today; not yet lending
AIB added today, no mention of BBLS anywhere on their site
Starling added today, no applications until 11th May
Things moving in the right direction though, Starling being the first 'challenger' to be approved.
Co-Operative added today; not yet lending
AIB added today, no mention of BBLS anywhere on their site
Starling added today, no applications until 11th May
Things moving in the right direction though, Starling being the first 'challenger' to be approved.
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It's not about whether you're a safe bet, it boils down to be fraud if you've misrepresented your 2019 turnover to get a higher loan.
Don't get me wrong, I agree with your principles in that reducing your finance costs with a low interest loan from the government makes perfect business sense.
I hope for your sake that the retrospective checks that hmrc will be doing will only be in the event of a business defaulting on the loan.
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For context we are now just 3 days into a scheme which was launched in a huge rush and has seen every business on the planet apply - even those who don’t want a loan.
Patience will pay you back
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I overheard while getting tyre fixed today that guy in the trade and a few others got there 50k paid into account, he was saying a few people who knew had gotten it had no intentions of paying back as they ltd, they felt like it was a lotto win
He said it was 7 easy questions, wham bam
it annoyed me never said anything but thought won’t be going back there for tyres.
He said it was 7 easy questions, wham bam
it annoyed me never said anything but thought won’t be going back there for tyres.
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I agree. I get that they have received a lot of applications, but that is no different to other lenders who seem to have been paying out their loans since Monday.
As you say, some sort of communication to give an idea of timescales would have helped.
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Yorkshire were the same. Client applied on Mon, heard nothing, then £50k appeared in his a/c earlier - but only knows because he went online to check his a/c.
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