Bounce Back Loans for property businesses – Part 2

by Ranjan Bhattacharya

16:51 PM, 12th May 2020
About 2 months ago

Bounce Back Loans for property businesses – Part 2

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Bounce Back Loans for property businesses – Part 2

Our last video on the Bounce Back Loan Scheme and how property businesses are eligible, has given rise to a lot of discussion on Property118 and elsewhere on social media.

In this video Andrew Roberts and I return to give an important update including:

– Which banks have paid out to property businesses

– Clarifying the meaning of ‘trading income’

– Self certification of your businesses turnover

– Whether or not you have to pay the loan back

If you missed Part 1 watch it here at: https://youtu.be/vgw00tf_3nc



Comments

Paul Shears

22:53 PM, 12th May 2020
About 2 months ago

Total mess in Santander! They have absolutely no idea what they are doing and now do not even answer the phone so that I can correct there ridiculous mistakes.
So after many hours trying over several days, culminating in my receiving an absurd automated Email intended for someone unconnected with my business, I finally gave up.
I then went to HSBC who answered the phone straight away and seemed to be at least geared up for the start of the loan process. I have been told that I will receive a form to complete within five days. HSBC offer feeder accounts for the loan so you you do not need to be an existing customer.
There are far more banks that are not offering this loan than are doing so. I have accounts with three high street banks. Two of my banks do not offer the loan and Santander have completely failed.

BakerStreetPropertyMeet

10:36 AM, 13th May 2020
About 2 months ago

HSBC are not fast, but I believe they are the only bank taking on non-customers

JB

10:42 AM, 13th May 2020
About 2 months ago

I use a Lloyds personal bank account to run what is now a partnership. Their website says I need to open a business account (increased fees and all the pain of changing accounts) in order to receive a bounce back loan.

JB

10:52 AM, 13th May 2020
About 2 months ago

Which account would HSBC pay into? Does it matter which account the loan lands in? I have 3 company accounts for different ltd companies.

JB

11:41 AM, 13th May 2020
About 2 months ago

I not applying through Lloyds, I have applied to open a 'temporary feeder account' with HSBC!

Paul Shears

11:55 AM, 13th May 2020
About 2 months ago

Reply to the comment left by JB at 13/05/2020 - 10:52
You can open a seperate account if you want to with HSBC but what they are also offering is something called a "feeder" account. It sounds to me like it's only function is to put the loan into and you would then transfer the money from there. However I am still awaiting details.

John Heap

12:22 PM, 13th May 2020
About 2 months ago

First class at Santander, money in the account in three days.
great service.

JB

12:29 PM, 13th May 2020
About 2 months ago

This is what their website says:
.....'temporary feeder account (Bounce Back Loan Feeder Account). This account will be used just to draw down the funds from the Bounce Back Loan, and then make a single payment of these funds to an existing account'
then
'you can make repayments from any account you nominate (subject to our standard transaction checks)'

Trevormlazenbury@aol.co.uk

13:33 PM, 13th May 2020
About 2 months ago

I have watched this video concerning the bounce back loan and I am still unclear how most rental businesses could satisfy the requirement that, 50% of the income is derived from its trading activity.

The business is engaged in trading or commercial activity in the UK at the date of the application, was carrying on business on 1 March 2020 and has been adversely affected by coronavirus (COVID-19).

More than 50% of the income of the business (together with that of any member of any group of which it is a part) is derived from its trading activity. This confirmation is not required if the borrower is a charity or a further education college.

James Palmer

17:49 PM, 13th May 2020
About 2 months ago

I applied for the BBL today with Staling Bank, and already have the money in my account!! That's fast.

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