Groundhog Day again for many of you today, having seen your businesses suffer due to no fault of your own, many of you are now suffering the added slap in the face of not being able to open a bank account with an accredited Bounce Back Loan lender.
Getting a Bounce Back Loan is the easy part, for let’s face it as long as you have a bank account with an accredited lender, meet the eligibility criteria and have a pulse then the process is very light touch and you should be able to apply quickly and will get paid out in no time.
It did become apparent that if you didn’t have a good credit rating then getting a bank account with a bank/lender approved to offer Bounce Back Loans was going to be impossible, however even those of you who have managed to get a business account have discovered many banks have now moved the goalposts.
As such even though you may now have a busines bank account set up, most banks now require you to have had that account opened before or around the start of March this year to gain access to one of their Bounce Back Loans, Lloyds, TSB and the Co-Op Bank spring to mind there.
I have contacted several banks who have such rules now in place, and have been told that there “maybe” or “could be” a chance they will relax those rules and allow people with account opened after their current deadline to apply for a BBL at some point in the future, however not one bank has said that will “definitely” be the case.
Some of you therefore are praying and hoping a new lender/bank will be accredited soon will open up their Bounce Back Loan schemes to everyone, but I have a sneaking suspicion that is not going to happen, and besides many of you want a loan right now not in weeks/months (the BBL scheme is due to end on November the 4th by the way).
HSBC do have their feeder account but keep in mind lots of people have been declined for such an account, and it’s probably better for those that want to go with that bank to open a business bank account as the KYC and checks etc are the same for both types of account.
Starling Bank operate a waiting list to apply for a Bounce Back Loan, and looking at their website this morning are accepting Sole Traders and LTD’s, keep in mind that even if you do open a business account with them, there is no guarantee they will give you a BBL due to them having their own criteria for giving them out on top of the British Business Banks’ criteria.
Metro Bank is an option for those of you who want a business bank account then a Bounce Back Loan, but they require you to visit one of their branches to apply for such an account, which will see you having to wait for your name to be called, and strangely Metro Bank are refusing some business account applications based on their “appetite”, that being appetite for the type of business applying for an account.
Barclays are also operating a similar scheme as Metro Bank now, so they are a bank to also consider, and Clydesdale Bank will allow you to apply for a business account online, but expect to wait a good couple/few weeks for them to get around to you.
If you have tried all options now and are about to give up please contact your local MP, I have said this a lot to people, but some MP’s do have good contacts with some banks and have been able to get accounts opened for people even when they were declined for an account initially.
No matter what your views are on politics, if your local MP can pull some strings to get you a business bank account (and believe me many have pulled some strings/stunts/miracles and done some amazingly things behind the scenes to help their local businessmen and businesswomen get a bank account and then apply for a BBL) it is a route worth taking, so do it today if you are struggling.
Been Declined a Bank Account or BBL?
Please read below for some reasons as to why you may be declined a bank account and/or a Bounce Back Loan with some lenders.
Many people who are declined tend to fear it is their credit rating/score that is the cause of a decline, and whilst that can and may play a part obviously, there can be a whole host of other reasons, some of which can be sorted out, and when the latter is the case you may find it much easier to open a bank account and/or obtain a Bounce Back Loan.
Some Lenders can and will and are in within their rights to decline anyone for an account and/or BBL based on their own criteria in additional to that laid down by the British Business Bank.
With that in mind, if you have checked all of the following and/or have been declined by one lender then you are also within your rights, and encouraged to apply to any other lender that is part of the Bounce Back Loan scheme.
Potential reasons not relating to credit score/rating
SIC Code – not matching on companies house vs application.
SIC Code – considered a reputational risk – you would be surprised how many business types fall into this category.
Directors/owners name not matching companies house and/or
Voters roll e.g. Chris vs Christopher, is middle name included etc
Business address not matching, has accountant used their address for registered? What is your correspondence address at companies house?
Business name not matching e.g. Ltd v limited
Recent changes of directorship and/or ownership – red flag at the moment due to BBL fraud
Markers registered against the company or director
Previous financial relationship with the bank or one its subsidiaries that did not end well
Many Bounce Back Loan applicants that have been through hell and still are experiencing problems have been offered compensation, ranging from £50 up to £2500 for the more complicated problems.
It is your choice as to whether you a accept any offer of compensation and the amount you accept too.
Bank and Lender Updates
Be aware things can change in an instant at any bank and as such I will now give you an overview of how things are going with each bank, and let you know how and where to contact if you want to try and chase up your Bounce Back Loan application and find out where things stand with each bank.
Each bank will have their own criteria for opening accounts, and some lenders also have their own set of rules regarding who they will allow to open an account and/or apply for a Bounce Back Loan.
They appear to have now launched their online Feeder Account Portal, which hopefully does away with the exceptionally long and drawn out process for applying for such an account.
Many people who had previously applied for a Feeder Account are still waiting for their call backs to set up the account, and/or to receive all related documents and many people are still waiting for payment.
Be aware many people have been declined for such an account when using that portal, and also when they have applied for a feeder account during the telephone interview for such an account.
Useful Email Addresses for Contacting HSBC:
Lloyds continue to do what they do best, process, and pay out BBL applicants quickly and with no fuss or hassle.
Be aware that if you hold a Bank of Scotland or a Halifax or Lloyds personal bank account you can use the Onboarding Portal to get a Lloyds Business Account and then can apply for a Bounce Back Loan.
Be aware though the dates listed on the website, as you will have had to have a personal bank account in operation before those dates to be able to onboard with Lloyds, if you have opened an account after the dates you will not be able to use that onboarding system.
Lloyds CEO Email Address
Metro Bank have now launched their Bounce Back Loan scheme, which is a sight to behold.
Due to the speed at which applicants are processed, and the rapid pay-outs too, many people wish they had an account with them, as their Bounce Back Loan journey would be an easy one for sure.
Metro Bank will let you register an interest in opening an account with them online and they will then make contact with you to arrange an appointment in one of their banks or ”stores” as they like to call them.
Applicants simply join an online queue and when it is their turn to apply for a Bounce Back Loan (which can be after a few hours), they then fill in the application form and once done they are then either approved on the spot, declined or told whether any additional information is required.
The feedback from many people is that Metro Bank are the game changer, as unlike most other banks people get to know at the end of their application their fate, without having to wait for days or weeks to discover what is going on with their application, as has been the case with other banks.
Email the CEO of Metro Bank Dan.firstname.lastname@example.org
Tide have run out of money to lend and are desperately scrambling around trying to raise more to increase the number of applications they can process, as such you can expect a huge delays before any application you have put in will be processed.
To be fair to the Co-Op not many people have been complaining about them, I have had a few here and there and some have been sorted out but every now and then I get someone appearing and asking for help. They will not however let you open a new business account and apply for a Bounce Back Loan.
Co-Op Bank CEO Email Address
Yorkshire Bank and Clydesdale Bank
I get the odd complaint about both Yorkshire Bank and Clydesdale and it is always worth checking out their respective BBL sections of their websites for updates, seen reports of those banks taking applications for new bank accounts by the way, but check that out as it can change at any time.
Yorkshire Bank CEO Email Address
Clydesdale Bank CEO Email Address
I am still getting all manner of weird and wonderful complaints about Barclays, it does appear though that many applicants now fly through their Bounce Back Loan system, but many are still experiencing problems with applying, getting paid and contacting the bank.
Barclays CEO Email Address
NatWest and RBS
The usual complaints about NatWest and RBS, including poor communication, problems applying for a BBL and even people being declined. Once again you need to start haranguing the right people to have any chance of your problems being resolved.
They have been paying many applicants out obviously, so if you do manage to have a hassle free experience then you should get paid out fairly quickly, even if it is not in the time scale you had hoped for.
Be aware that you may apply, not hear anything and then out of the blue get an email saying they are so busy your application is being dumped and not looked at.
NatWest / RBS CEO Email Address
Much like some of the above banks Santander have attracted plenty of complaints, but in all fairness many followers, and many long-time ones too have found emailing their CEO does get a response and their claims processed quickly. They too have also been dumping applicants via a mass cull type of email so be warned.
Santander CEO Email Address
Starling Bank operate a waiting list type of system, however, be aware they have additional criteria of their own as to whom they will supply a Bounce Back Loan to. Therefore, there are no guarantees you will get a loan from them. They have declined many thousands of applicants.
Skipton Building Society
Skipton Building operate a different business model than most mainstream lenders so you will need to check their website to find out more about what they have on offer to applicants.
You will be asked to sign away your rights to be able to apply for a Bounce Back Loan if you try to open a new account with TSB. As such do not waste your time trying to get such an account with them if your intention is to apply for a TSB Bounce Back Loan.
TSB CEO Email Address
Other Bounce Back Loan Lenders
The following are other Bounce Back Loan Lenders, be aware I receive very few if any complaints about any of the following.