If you’re reading this then you are looking for details on any issues people are facing with the bounce back loan. Keep reading to get all the Bounce Back Loan Issues Explained.
Those facing issues are now in a race against time to switch their bank accounts to the few lenders that are still accepting applications from new customers.
But on the bright side, there are still few lenders who are open for new accounts.
One of the most common issues that people face is their personal credit rating isn’t good enough.
- The government has said that you cannot decline someone for a bounce back loan because their business isn’t creditworthy or because it’s insolvent.
A lot of people have the problem where maybe their bank doesn’t offer these bounce back loans so they need to get an account with another bank.
- They need to go to another bank. When you go to the other bank to apply because their personal credit is not as good as it could be, you get declined for opening a bank account. You’re not getting declined for getting the loan, you’re getting declined for getting the account. So if you’re in that situation, I would focus quickly on repairing your credit.
I would also go to the government website and find all of the lenders for bounce back loans and I would apply for a business account with all of them. Yes every single lender, time is of the essence you cant wait.
- Some banks are very strict, some are not very strict, but you will get an account with one of them (D0n’t give up). Focus on getting an account with all of the lenders, then you can apply for a bounce back loan with as many as you want. Take note that you can only get one loan, but you can apply with as many as you like.
People are applying for too much money.
If you’re a startup, you’re blessed being able to work this on estimated turnover. So you can estimate your turnover of £200,000 and get a £50,000 loan.
If you’re already established, and you’ve already put your accounts in, you can’t go back and change those. If last year you did £20,000 in revenue, you’re not going to be able to get a £50,000 loan.
In that instance, you can do 25% of your turnover, which would be £5,000. Make sure that you speak with your accountant, apply for an amount that is 25% of your turnover.
Pro Tip: Go to the government website and look for all the lenders for bounce back loans and apply for a business account on all of them. You can only get one bounce back loan but you get to apply to as many as you want. In that way, you’re not going to run out of chances.
With time running out, you need as many options as you can. Check out this post on what to do if your bounce back loan gets declined.