Bounce back loan - only for bank's existing customers?
Discussion
Hi all, hoping to get some help on a bounce back loan under the government's new scheme.
The government guidance says I'm eligible. However, every one of the "accredited lenders" who are providing the loans will only process your application if you are an existing customer of theirs.
This rules me out as, despite banking with NatWest for years, last year I was forced to move to a competitor bank by NatWest (as part of their GFC bail out agreement, I believe?).
So I now bank with Starling, who have been great, but it seems that means I cant apply for the loan, despite the government saying I can!
Can anyone offer any ideas please?
The government guidance says I'm eligible. However, every one of the "accredited lenders" who are providing the loans will only process your application if you are an existing customer of theirs.
This rules me out as, despite banking with NatWest for years, last year I was forced to move to a competitor bank by NatWest (as part of their GFC bail out agreement, I believe?).
So I now bank with Starling, who have been great, but it seems that means I cant apply for the loan, despite the government saying I can!
Can anyone offer any ideas please?
Edited by youngsyr on Tuesday 5th May 17:50
youngsyr said:
Hi all, hoping to get some help on a bounce back loan under the government's new scheme.
The government guidance says I'm eligible. However, every one of the "accredited lenders" who are providing the loans will only process your application if you are an existing customer of theirs.
This rules me out as, despite banking with NatWest for years, last year I was forced to move to a competitor bank by NatWest (as part of their GFC bail out agreement, I believe?).
So I now bank with Starling, who have been great, but it seems that means I cant apply for the loan, despite the government saying I can!
Can anyone offer any ideas please?
I assume it's because the bank will want to be able to assess your businesses income and expenditures.........but the HSBC application asks;The government guidance says I'm eligible. However, every one of the "accredited lenders" who are providing the loans will only process your application if you are an existing customer of theirs.
This rules me out as, despite banking with NatWest for years, last year I was forced to move to a competitor bank by NatWest (as part of their GFC bail out agreement, I believe?).
So I now bank with Starling, who have been great, but it seems that means I cant apply for the loan, despite the government saying I can!
Can anyone offer any ideas please?
Edited by youngsyr on Tuesday 5th May 17:50
"If you are applying for a Bounce Back Loan from us and you are a new customer to HSBC or a customer holding neither a business current account nor a personal current account, or you are an unincorporated association, we may need to ask you some further questions as part of the loan application process."
Which reads to me that they may ask you for further information if you aren't currently a client of theirs?
In respect of dealing with businesses who don't have an account / relationship with them already, the banks will be extremely cautious about fraud (the government are unlikely to pay out on the guarantee in fraudulent cases where the money is lost because the bank failed to do sufficient due diligence / did checks etc). It isn't about rushing out loans with gay abandon.
The government, of course, are likely to be as vague as possible on this point so they can then make the rules up in their favour after the event.....
The government, of course, are likely to be as vague as possible on this point so they can then make the rules up in their favour after the event.....
You do not need to bank with HSBC to apply with HSBC.
You will need to open a one time use feeder account first (takes 3 days), then apply.
If your application is approved you will be able to move the funds from the feeder account into your regular business account and then they will close the feeder account.
Look in the business section, several people are doing it (myself included).
I am still waiting for the feeder account to go live... and have no idea if they will accept my application but its worth a go.
You will need to open a one time use feeder account first (takes 3 days), then apply.
If your application is approved you will be able to move the funds from the feeder account into your regular business account and then they will close the feeder account.
Look in the business section, several people are doing it (myself included).
I am still waiting for the feeder account to go live... and have no idea if they will accept my application but its worth a go.
red_slr said:
You do not need to bank with HSBC to apply with HSBC.
You will need to open a one time use feeder account first (takes 3 days), then apply.
If your application is approved you will be able to move the funds from the feeder account into your regular business account and then they will close the feeder account.
Look in the business section, several people are doing it (myself included).
I am still waiting for the feeder account to go live... and have no idea if they will accept my application but its worth a go.
Great, thanks for the tips! You will need to open a one time use feeder account first (takes 3 days), then apply.
If your application is approved you will be able to move the funds from the feeder account into your regular business account and then they will close the feeder account.
Look in the business section, several people are doing it (myself included).
I am still waiting for the feeder account to go live... and have no idea if they will accept my application but its worth a go.
red_slr said:
I just checked on my application and HSBC told me its taking them longer to open the feeder accounts - up to 5 days now.
But they still processing my application so at least the wheels are turning.
Probably because they're the only bank offering that service!But they still processing my application so at least the wheels are turning.
My bank (Starling) are apparently applying for accreditation, so I'm hoping they'll come through shortly.
youngsyr said:
Probably because they're the only bank offering that service!
My bank (Starling) are apparently applying for accreditation, so I'm hoping they'll come through shortly.
I also bank with Starling and believe they have been accredited this morning by the government. They will start accepting applications on Monday 11th. Will apply then and let you know how I get on.. Good luck all. My bank (Starling) are apparently applying for accreditation, so I'm hoping they'll come through shortly.
Sevenon said:
youngsyr said:
Probably because they're the only bank offering that service!
My bank (Starling) are apparently applying for accreditation, so I'm hoping they'll come through shortly.
I also bank with Starling and believe they have been accredited this morning by the government. They will start accepting applications on Monday 11th. Will apply then and let you know how I get on.. Good luck all. My bank (Starling) are apparently applying for accreditation, so I'm hoping they'll come through shortly.
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