HELP NEEDED WTH BOUNCE BACK LOAN APPLICATION

[Marcus1984]

Hi, can anybody help ! my business was established November 2019, as a LTD co, I traded through mt personal bank with the intention of changing to business account after 6-8 months when things got going so to speak -

then covid came - and high st bank stopped accepting applications !

My question is, I am still unable to open a high street bank account to get a Bounce Back Loan ! I managed to get a Cashplus business account - but cant get a bank who does BB to accept or process the application even as a "feeder account " ! it seems this is a loophole being used by them not to give them !

Does anybody know how I can get the BB loan I desperately need and am entitled to ! I have a decent little business going - have ridden the storm - propped up credit cards and the such expecting to get BB square the expensive ones and go onto thrive !

MANY THANKS IN ADVANCE

 

[Mr D]

Sounds like you won't be able to get a BBL.

Need? OK. Entitled? Apparently not.

You have checked all the banks who are doing the BBL scheme? And you meet requirements for turnover and size of loan?


If BBL isn't an option, try a regular loan.

 

[japancool]

Unless you can convince the bank through which you were originally using the personal account to trade, the chances are, you're out of luck.

If you had asked this question 3 months ago, there were still some, although not many, options. Now... you're either facing long wait times for current account applications, or banks are not offering new businesses current accounts UNLESS they agree not to apply for a BBL.

It took me 6 months to open an account with a high street bank who was offering a BBL.

 

[STDFR33]

Personal account for a limited company? Creates problems and potential tax liabilities.

I bet you don’t have an accountant either, do you?

 

[Marcus1984]

Personal account for a limited company? Creates problems and potential tax liabilities.

I bet you don’t have an accountant either, do you?

Relevance to the question asked ?

 

[Marcus1984]

Unless you can convince the bank through which you were originally using the personal account to trade, the chances are, you're out of luck.

If you had asked this question 3 months ago, there were still some, although not many, options. Now... you're either facing long wait times for current account applications, or banks are not offering new businesses current accounts UNLESS they agree not to apply for a BBL.

It took me 6 months to open an account with a high street bank who was offering a BBL.

THANKS

 

[jimbof]

but cant get a bank who does BB to accept or process the application even as a "feeder account " ! it seems this is a loophole being used by them not to give them !

Does anybody know how I can get the BB loan I desperately need and am entitled to !

The banks are loaning their own money, and will only be able to claim on the guarantees once they jump through some hoops which will undoubtedly cost them money.

It's no wonder they're doing all they can to limit offering these loans out now, as to be honest for the most case they'll be going to businesses without a long term future so at this stage in the game they're mostly adding to bad debt. Likewise, I'm sure they're in no hurry to offer them to folk using personal accounts for trade as they're unlikely to be significant businesses that will ever show them a profit.

That might sound harsh, but it is my honest belief that for most business that could possibly be affected, that could have been applying for these almost a year ago, and didn't back then, really is unlikely to thrive long term. They were such an obviously good deal that it was pretty much bad business not taking one if you could legitimately justify it.

I don't know if Starling are still opening accounts or offering loans. I got my Starling account set up over the internet in about 4 days back at the height of all the issues in I think May last year. I understand Metrobank have still been opening accounts, too; my BBL is through Metrobank (I moved to Starling because of issues with Metrobank's internet banking integrations).

Metrobank applications page is here:
https://www.metrobankonline.co.uk/business/current-accounts/

Have you tried these two banks?

 

[JEREMY HAWKE]

Realistically
If your struggling to get a BB loan you may wish to consider if borrowing the money is a good idea . Your OP indicates that your on path that has seen previous bank application struggles and aiming to become a debt free and cash positive business maybe the best long term economic strategy for your operation.

Your running a Cashplus Business account who I understand have recently been approved as a bank so you do now have business banking set up
You really do need an accountant on board sorry I know you dont like that advice but @STDFR33 was only trying to offer the best advice and I am backing up his breakdown on this

 

[Mark T Jones]

The banks are loaning their own money, and will only be able to claim on the guarantees once they jump through some hoops which will undoubtedly cost them money.

?

Not exactly. They are dipping into a BBB pot, paying 0.1%. Whilst they are theoretically responsible for recovery it's slightly woolly around here the actual liability is.

CBILS, on the other hand is the bank's own money and they have to apply under the guarantee, which is why lending is so much tougher

 

[Spur Support Services]

I think you've missed the boat.

My bank facility, Tide, is quick to set up, but they have a notice saying that the Bounceback Loan waiting list is now closed.

The below is the list of banks who are offering BBL. Your best bet is contacting your own bank if they are on the list. https://www.british-business-bank.c...oans/current-accredited-lenders-and-partners/

 

[japancool]

Tide ran out of money for BBLs some time ago, that's why they closed their applications.

The BBL scheme ends at the end of this month, unless it's extended.

 

[jimbof]

My bank facility, Tide, is quick to set up, but they have a notice saying that the Bounceback Loan waiting list is now closed.

The moral of that particular story is... if you're likely to need banking services, probably best bank with... an actual bank .

 

[Marcus A. Wright]

As others have mentioned, trading through a personal bank account for a LTD company is never a good idea.

There are a few Bounce Back Loan Scheme providers that are still offering loans outside the banks but restricted to certain postcode areas and also specific industries. For example I know of one still accepting applications for Greater Manchester based businesses.