Bounce back loan

[Desolate]

Wow @Desolate !! Good for you.

I applied a bit before you with Starling and haven't heard anything yet. Ugh.

But if you have been banking with them a while they may have prioritised you and I only joined a week ago.

@Desolate - can I ask, after applying what communication did you have?

They say you will be messaged through online banking but I can't even find a messaging centre on the app or web banking.

When/where did you receive notification of your approval and have to sign electronically?

Many thanks

I have banked with Starling since November for this business (we switched under the RBS incentive)

I was aware that application opened on 11 May so at about 0730 logged in and there was no change. I checked again around 11ish and applications were open. Filled it out and at the end of the process it says they will review the application.

An hour or so later I got a message saying agreement was ready so signed it online.

An hour or so after that money deposited.

In the meantime I had tried to apply for another company and got the message that each person can only have one loan.

I queried this by their app messaging system and was pointed to the FAQs. My understanding is that this is wrong and i wouldn't be surprised if it was a poorly worded way of managing the demand

The application and signing process is completed in their online banking but the messages come on the app. You could probably do it all on your phone but I used my laptop and my phone.


Considering it's been impossible to engage with Barclays by way of phone, online, secure messaging or carrier pigeon that small hiccup still leaves them in a different league to them. with Metro we do have someone we can speak to but they just say we have to wait until next week.

TBH we could just wait for it all to settle down but these loans are on such fantastic terms I wouldn't want the government to change the goalposts with no notice.

 

[RockNRollaaa]

Ah, ok, thanks. I keep logging into web banking but I keep logging into the app first to get my account number so that will cut down on one more step!

I had exact same problem with Barclays and HSBC. HSBC were supposed to call me back about the loan feeder account on Friday but that didn't happen. Barclays. Well, enough said.

I sincerely hope it's just demand that's the reason I haven't heard anything yet as Starling announced they processed £50m yesterday and both you and somebody else above applied about the same time as me and you've both received yours.

 

[BusterBloodvessel]

Just called HSBC to try and get an update on the feeder account application. The answer was they can't tell me anything or give any time scales. They did however then contradict themselves and say that we should now hear something by Friday given I applied last Monday.

We shall see....

 

[ValenDigital]

By way of an update
One of my businesses has banked with Barclays for years and still cannot apply for the loan online as apparently I need to provide some documents. No idea what these are as I they haven't called me as promised and I can't stand being on hold any more

I have same type of issue with Barclays and they have been stringing companies along with different messages for over a week. Another business I have was just over 1 working day to get funds with another bank.

A few of our clients have been getting weird messages one of which is: you are not eligable for a BBSL loan! TBH barclays is shocking. Looks like starling is doing a stella job unlike the big 6.

 

[Newchodge]

A few of our clients have been getting weird messages one of which is: you are not eligable for a BBSL loan! TBH barclays is shocking. Looks like starling is doing a stella job unlike the big 6.

I just got my email from Starling to go online to sih=gn the document. Unfortunately the page just shows an error message. Perhaps Starling has issues as well!

 

[ValenDigital]

I just got my email from Starling to go online to sih=gn the document. Unfortunately the page just shows an error message. Perhaps Starling has issues as well!

what it seems like is for the first few days everything seems to go smoothly then after that it all starts to go wrong. Was even the case with barclays the first few days seemed to be all systems go then quickly went downhill.

 

[RockNRollaaa]

@Newchodge - when did you apply and have you been banking with Starling long?

 

[Newchodge]

Yesterday about 11.00am, I've been with them since end January,

I wouldn't worry, they need time to get through the numbers applying.

 

[RockNRollaaa]

Yesterday about 11.00am, I've been with them since end January,

I wouldn't worry, they need time to get through the numbers applying.

OK, thank you. I applied same time but totally understand they deal with more established/loyal customers first.

 

[Supreme Clean]

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??

He has since spoken to the bank and was told to proceed as the Iva is a personal one and the loan is for business which is profitable and 100% backed.

 

[Desolate]

Indeed, that was my understanding.

I do like Starling, but it's worrying when they (and they're not the only bank) seem to get basic rules so wrong.

I can't post links but there is information from Santander that seems to confirm Starling's position

look on twitter for user thebbls and they have posted an image explaining things. Will be an issue for me.

 

[trax7960]

I can't post links but there is information from Santander that seems to confirm Starling's position

look on twitter for user thebbls and they have posted an image explaining things. Will be an issue for me.

Before others panic, I've just seen the image and will summarise here:

One person owning one company; not a group
One company owning another company; is a group
One company owning several companies; is a group

One person owning several limited companies:

In the same market/line of business - is a group
In different markets/business areas - not a group

Essentially if you own 3 limited companies for 3 hairdressers, or maybe a hairdressers, a beauty salon and a nail bar - you are a group as per the terms of BBLS and only one business may apply.

If you own a pizza shop, a PC repair company and a car dealership, you are not a group and each company may apply for separate loans.

 

[Desolate]

snipped for brevity

Essentially if you own 3 limited companies for 3 hairdressers, or maybe a hairdressers, a beauty salon and a nail bar - you are a group as per the terms of BBLS and only one business may apply.

If you own a pizza shop, a PC repair company and a car dealership, you are not a group and each company may apply for separate loans.

I *think* it's own or control - so I am involved in a number of different businesses with other different shareholders.
Given this interpretation I can see why Starling have taken the stance they have - need to be quick to market and easy to adminsiter - this trumps covering all the bases.

 

[The Soup Dragon]

Before others panic, I've just seen the image and will summarise here:

One person owning one company; not a group
One company owning another company; is a group
One company owning several companies; is a group

One person owning several limited companies:

In the same market/line of business - is a group
In different markets/business areas - not a group

Essentially if you own 3 limited companies for 3 hairdressers, or maybe a hairdressers, a beauty salon and a nail bar - you are a group as per the terms of BBLS and only one business may apply.

If you own a pizza shop, a PC repair company and a car dealership, you are not a group and each company may apply for separate loans.

So If one company in a group has already applied for and got a bounce back loan, can another company in the group apply for CBIL?

 

[Desolate]

So If one company in a group has already applied for and got a bounce back loan, can another company in the group apply for CBIL?

According to the FAQ page of the quango that runs the schemes:-
Can I apply for a CBILS facility as well as a Bounce Back Loan Scheme facility?

A business is not able to take out a Bounce Back Loan Scheme facility if they have been approved for a CBILS facility, and vice versa.

 

[The Soup Dragon]

I am now on day 8 after my BBL application and still no reply. This is with HSBC my business bank of the last 5 years. Is anyone else at this sort of time scale after application too?

 

[RockNRollaaa]

I am now on day 8 after my BBL application and still no reply. This is with HSBC my business bank of the last 5 years. Is anyone else at this sort of time scale after application too?

I have personal accounts with HSBC and also 'applied' last Monday for the loan feeder account, for which I was told I would be called back on Friday. That never happened and same with Barclays. Two friends I told about the BBL last weekend applied on Monday and both had funds in their account the next day, with Lloyds. What a contrast.

 

[anonuk]

Before others panic, I've just seen the image and will summarise here:

One person owning one company; not a group
One company owning another company; is a group
One company owning several companies; is a group

One person owning several limited companies:

In the same market/line of business - is a group
In different markets/business areas - not a group

Essentially if you own 3 limited companies for 3 hairdressers, or maybe a hairdressers, a beauty salon and a nail bar - you are a group as per the terms of BBLS and only one business may apply.

If you own a pizza shop, a PC repair company and a car dealership, you are not a group and each company may apply for separate loans.

So, I have a print company (commercial printing and giftware), and another company that does nothing by screen printing on clothing (it’s own clothing brand).

Would these be classed as in the same market as both involve printing to one degree? I ask because both companies have received a BBLS.

It’s frustrating that the banks are allowed to make up their own interpretation of what a group is without telling customers that their interpretation is different to what is commonly known as a ‘group of companies’.

 

[motpo]

I have personal accounts with HSBC and also 'applied' last Monday for the loan feeder account, for which I was told I would be called back on Friday. That never happened and same with Barclays. Two friends I told about the BBL last weekend applied on Monday and both had funds in their account the next day, with Lloyds. What a contrast.

Yes I applied for my BBL with LLoyds at 4.30pm yesterday and my loan was deposted early this afternoon

 

[OMGVape]

Has anyone got a loan from a bank they didn’t use prior?
I got a BBL for 25k from my Lloyds account but now think I should have gone for 50k (my turnover qualifies) but Lloyds won’t accept a second application.

 

[anonuk]

Has anyone got a loan from a bank they didn’t use prior?
I got a BBL for 25k from my Lloyds account but now think I should have gone for 50k (my turnover qualifies) but Lloyds won’t accept a second application.

You’re not allowed to apply for a second loan or for an increase on your original loan as far as I’m aware.

When we applied with Santander it specifically said that you could not ask for more if you apply now then decide you need more.

 

[Mancunian]

I am now on day 8 after my BBL application and still no reply. This is with HSBC my business bank of the last 5 years. Is anyone else at this sort of time scale after application too?

Yes, I applied last Monday morning. Nothing yet.

 

[Frogmann]

Yes, I applied last Monday morning. Nothing yet.

I am with HSBC as well. I applied last Tuesday but reapplied on Wednesday for a higher amount. I did ask before I reapplied and was told that the second application will override the first. Not a word since then. I have been with them for years too... I don't think that counts though.

 

[BusterBloodvessel]

It would appear that absolutely nothing is moving with HSBC. Extremely frustrating, although I guess it's a slight comfort to know that I'm not alone!

 

[stark77]

Before others panic, I've just seen the image and will summarise here:

One person owning one company; not a group
One company owning another company; is a group
One company owning several companies; is a group

One person owning several limited companies:

In the same market/line of business - is a group
In different markets/business areas - not a group

I control two limited companies and so fall under scenario D on the Santander PDF and whilst there is a certain amount of interpretation, I think they could well be considered in the same line of business.

So, that seems to preclude two separate loan applications as they are to be considered a group.

However, the HSBC application process that I would use (as both companies bank with them), states on the revenue declaration that group revenue should be used where applicable and the 25% calculation taken off of that. There is no controlling entity that owns both businesses and can apply for the loan "at the group level". In fact, the PDF shows clearly the loan is applied for in company A or B.

So, I take that to mean that the total loan limit is based off the combined turnover of both companies, but is taken out by one or other of them alone. I can see that makes sense from a government basis of wanting to limit support under this scheme to 50k across a range of "connected" companies, but what about liability on those loans?

You can't have two separate legal entities both responsible for guaranteeing the loan. If company A takes out the loan, but goes bust - could they go after company B for the debt? That would seem to run entirely counter to both the liability limit on a limited company, and specifically this scheme that looks to protect the company owner from liability by banning personal guarantees. It would also mean that taking out a loan for a higher risk business (the ones this is supposed to support) could potentially bring down a more stable business with it.

 

[RockNRollaaa]

It would appear that absolutely nothing is moving with HSBC. Extremely frustrating, although I guess it's a slight comfort to know that I'm not alone!

I can't post links yet, but if you google HSBC Bounce Back Loan problems, the ifamagazine article says they are in complete disaray.

 

[Supreme Clean]

Sorry if I’ve missed the answer but why do you have to have an account with the bank you are applying through when you can transfer it to another account immediately??

 

[Frogmann]

Sorry if I’ve missed the answer but why do you have to have an account with the bank you are applying through when you can transfer it to another account immediately??

Repaying the loan I think.

 

[cash_is_king]

So, I decided to get the loan. Within 30 minutes it landed in my account. But, there is no info or details to how I pay it back, monthly or in full (when the time comes). The contract says to write in when I want to repay it. I’ve asked Santander on live chat and the person I spoke to didn’t have a clue, they said I will receive a bank account number. Seems strange. Any one have any ideas?

 

[The Soup Dragon]

I can't post links yet, but if you google HSBC Bounce Back Loan problems, the ifamagazine article says they are in complete disaray.

A friend applied for his BBL with HSBC last Tuesday and got the money over the weekend!!

I emailed a contact at the bank who replied saying that he could not look into the progress of my loan application and I would juts have to be patient.

Seriously unimpressed and thinking about changing my bank!

 

[Frogmann]

A friend applied for his BBL with HSBC last Tuesday and got the money over the weekend!!

I emailed a contact at the bank who replied saying that he could not look into the progress of my loan application and I would juts have to be patient.

Seriously unimpressed and thinking about changing my bank!

After losing patience and based on some info from people who applied later and got the loan, I reapplied myself this morning with HSBC. One thing I noticed is that I received an email confirming my application has been received whereas, I didn't get anything last week when I first applied.

 

[Sheppard Digital]

Does anyone know how having this loan may impact getting credit in the future?

We need to remortgage our home next year and we will need to release some equity to pay off a rental property we have that's in negative equity (value dropped from £65k in 2009 to £20k it's worth now). I'm self employed, so this loan will go against me personally and I'm concerned that come mortgage time next year having a BBL over my head may negatively impact the affordability checks that mortgage providers do. When we've remortgaged in the past it's my profits that are taken into account, I'm assuming the repayment of this loan will be taken before tax so providing business has the turnover, then my profits may not be impacted.

 

[anonuk]

Does anyone know how having this loan may impact getting credit in the future?

We need to remortgage our home next year and we will need to release some equity to pay off a rental property we have that's in negative equity (value dropped from £65k in 2009 to £20k it's worth now). I'm self employed, so this loan will go against me personally and I'm concerned that come mortgage time next year having a BBL over my head may negatively impact the affordability checks that mortgage providers do. When we've remortgaged in the past it's my profits that are taken into account, I'm assuming the repayment of this loan will be taken before tax so providing business has the turnover, then my profits may not be impacted.

You’re probably best off seeking advice from a mortgage advisor but generally speaking, the loan will be viewed as an ongoing commitment, so may affect your affordability.

You say profits may not be impacted, but if you didn’t have a loan to repay, your profits would be higher (as you wouldn’t be deducting the loan payments from your income).

A ‘GOOD’ mortgage advisor (not one attached to an estate agents) will probably be able to convince your mortgage lender that the loan is a business loan and not a personal one to remove it from affordability calculations.

When we bought our current house, we wanted to keep our old house for a couple of years to rent out. Our mortgage advisor was able to offset the mortgage cost of our old house against the rent we could expect so Halifax disregarded our old mortgage altogether.

 

[Sheppard Digital]

Thanks for the response. I guessed as such.

It's time like this I wish I had switched to being limited rather than self employed, but it's too late now.

 

[K.H]

I applied on the first day the loan was released by HSBC, I just received email approval and an e-form to sign, however they have incorrect bank details on the contract for my company, how is that even possible? anyone have similar issues on their form?

 

[The Soup Dragon]

I applied on the first day the loan was released by HSBC, I just received email approval and an e-form to sign, however they have incorrect bank details on the contract for my company, how is that even possible? anyone have similar issues on their form?

I wish I could get that far still waiting

 

[anonuk]

I cannot believe that big banks such as HSBC and Barclays are struggling so much. We have applied for two bounce back loans (with Lloyds and Santander) and received both the next day, with the Lloyds one being within about 14 hours of applying.

 

[Desolate]

I've been trying to contact Barclays since day 1 of this and have now given up. We even have a named contact but the number just goes through to the call centre and the emails and secure messages remain unanswered.
We are actually *owed* 12.5k in one business due to an incentive to switch to them and they don't know when they can process it. Totally barmy.

 

[The Soup Dragon]

I've been trying to contact Barclays since day 1 of this and have now given up. We even have a named contact but the number just goes through to the call centre and the emails and secure messages remain unanswered.
We are actually *owed* 12.5k in one business due to an incentive to switch to them and they don't know when they can process it. Totally barmy.

I am seriously thinking of pulling my HSBC application and going elsewhere

 

[Desolate]

I am seriously thinking of pulling my HSBC application and going elsewhere

I'd leave it open and try somewhere else. Just execute the first one that comes through.
I'd have thought they will get their act together in the next few weeks, but who knows?