Yes, they are taking poor credit into account, friend of mine has just been refused.
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Limited company Justin or Self Employed?
Reason I ask is because I thought the credit checks were for fraud and money laundering, but that might be as a limited company.
No real idea though as I doubt I will get a loan as I don’t need it.
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He's a limited company.
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If you google 'who is eligible bounce back loan', there are a number of conditions. If you were unable to pay your existing debts then you wouldn't qualify or if your business was in difficulty.
I would imagine it’s the personal credit check that would be the issue.
As a limited company, if you decide to get a loan or any form of bank credit they will conduct a search on the company name and personal searches of the person(s) who have a controlling interest. This is more so if the company is owned and run by one person.
This means that you can effectively qualify for the scheme as a limited company but still get refused, especially as it is the banks decision. Even though the money would be guaranteed.
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Ok so spoke to a 3rd person at HSBC who said you cannot amend loan but can re-apply which I have now done. That's a waste of nearly a week stressing. Out of interest this was part of the terms I had to sign "I/We understand that the lender will not conduct any form of credit or affordability check and accepts no responsibility, whether arising in contract, tort (including negligence) or otherwise, for my/our decision to borrow." That's why I thought no credit check was being done.
You could well be right Olly.Ok so spoke to a 3rd person at HSBC who said you cannot amend loan but can re-apply which I have now done. That's a waste of nearly a week stressing. Out of interest this was part of the terms I had to sign "I/We understand that the lender will not conduct any form of credit or affordability check and accepts no responsibility, whether arising in contract, tort (including negligence) or otherwise, for my/our decision to borrow." That's why I thought no credit check was being done.
I haven’t applied so anything I say is pure speculation if someone (like Justin’s mate) is refused.
I do know that HSBC changed from conducting no credit checks to carrying them out as a colleague of mine banks with them. How extensive that check is however is anyone’s guess
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I thought the bounce back loans were company related, not personal, However our accountant told us - Its a government backed bounce back loan, and the government will pay the first 12 months interest, and that government underwriting the loan removes the risk the banks not getting there money back. Meaning that qualifying should be really easy. (unless in bankruptcy, liquidation or undergoing debt restructuring.) so a basic check on both company and director(s) is carried out for this.
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Loans less than £25,000 will fall outide the Consumer Credit Act. As it stands now, banks aren't allowed to knowingly lend to poor businesses. So when I can't pay the loan back, I can claim that you gave a drug addict a bag of heroin...of course this was never going to end well..it's your fault.You could well be right Olly.
I haven’t applied so anything I say is pure speculation if someone (like Justin’s mate) is refused.
I do know that HSBC changed from conducting no credit checks to carrying them out as a colleague of mine banks with them. How extensive that check is however is anyone’s guess
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