We use cookies to improve your experience on this site. By viewing our pages, you give us consent to use cookies. Find out more.

What is the Position of Each Lender Regarding Bounce Back Loan Applications?

Posted 2 years ago

What is the Position of Each Lender Regarding Bounce Back Loan Applications?
Share this article:

* The following information has been extracted from the latest data made available by the All-Parliamentary Group for Fair Business Banking.

There are tens, possibly hundreds of thousands of businesses who can’t access Bounce Back Loans because they have a business account with the likes of Tide, whom haven’t been approved by the British Business Bank for Bounce Back Loans (their waiting list was closed at 70,000 businesses) who can’t access funds to lend and the other banks are effectively closed to new business or are deterring applications. Here is a rough guide to who is open and closed to applications from new customers:

Open (technically)

Closed

Barclays is currently open to new customs but taking weeks to process. According to a spokesperson: “While you don’t need a Barclays Business current account to qualify for a Bounce Back Loan, we’ll need to establish a business relationship with you before you can apply. We’re currently dealing with a large number of requests, so it might take some time to process your application. If your current bank offers Bounce Back loans, you may get a quicker response if you contact them first.”

Dasnke Bank is closed to new customers.

Clydesdale Bank is currently open to new customers but is prioritising existing customers and can’t provide a time frame. According to a spokesperson: “We’re expecting a high volume of applications and are prioritising our customers who need our support the most. If you’re a new customer, you may wish to speak to your own bank in the first instance as we’re unable to give you a timeframe for reviewing your application.”

Lloyds Bank is closed to new customers. According to a spokesperson: “We are experiencing high levels of demand and are doing all that we can to support our customers at this time. If Lloyds Bank does not already currently provide your main Business Current Account, please speak to your main bank for support in the first instance.”

HSBC is currently open but it is reportedly taking weeks to apply for an account and draw down a loan. According to a spokesman: “You don’t need to be an existing HSBC UK customer to apply and you do not need to have a bank account with us in order to apply for, or maintain, this loan. However, please bear in mind it may take longer to process your application as we need to carry out additional checks. If you do not already have an HSBC Business Bank Account and do not want to open one, we will open a temporary feeder account to use to draw down the loan, and will then arrange with you to transfer the funds to another account in your name at another bank (subject to our standard transaction checks).”

RBS/Natwest is closed to new customers. According to a spokesperson: “With unprecedented demand we’re currently prioritising existing customers. Bounce Back Loans are available to existing NatWest customers on or before 4 May 2020. If you opened a NatWest Business bank account after this date, you will not be able to apply for a Bounce Back Loan with us.”


 

Metro Bank is currently open to new customers, but you can only apply for a loan if you have a business account with them and have to attend a face-to-face appointment to open one. According to a spokesperson: “We are receiving a lot of enquiries about our business accounts at the moment, so to make sure our services are running smoothly for our existing customers and to keep waiting times to a minimum, we’ve temporarily introduced a new system. You need to visit your local store to speak to one of our colleagues and make an appointment to discuss opening a business account.”

Santander is closed to new customers. According to a spokesperson: “We’re working hard to do all we can to help our existing business customers who are in urgent need of support under the Bounce Back Loan Scheme. This means that we are currently not accepting new applications for Business Current Accounts, but we will review this position over the coming weeks and further details will be available on our website.”



Starling Bank is open if you leave your current bank, but weeks before might be invited to join/apply for a loan. According to a spokesperson: “To manage high demand, we’re prioritising in the first instance established business and sole trader customers, using Starling as their primary account. If you’re interested, please join our list. If you are eligible, you’ll be sent an email inviting you to apply. We can’t guarantee that everyone that joins the list will be invited to apply.”

TSB is closed to new customers. According to a spokesperson: “We are accepting applications for Bounce Back Loans from existing TSB Business Current Account (BCA) customers only.”



Authors: Sacha Bright & Oliver Murphy

Disclaimer

To the best of our knowledge, the information we have provided is correct at the time of publishing. Sacha Bright is not a solicitor or accountant and we recommend that you seek professional advice on any topic discussed. Nextfin is not liable for any damages arising from the use of or inability to use this site or any material contained in it, or from any action taken as a result of using the site. 

Tagged: sme coronavirus news equity crowdfunding alternative finance



Be a contributor to our blog click here to contact us
Click here to sign up to our newsletter

0 comments

Log in to comment

We reserve the right to remove comments which are inappropriate and/or offensive.
Comments are not the opinion of Nextfin.uk. Please read the comment guidelines
  • Internet Business Awards Category Award Winner 2015
  • Hertfordshire Business Awards Finalist 2014

As seen in:

  • The Guardian
  • Financial Times
  • Yahoo! Finance
  • The Times
  • The Daily Telegraph