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Barclays bounce back loan awarded

Business snot yet open

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Appreciate this is third-hand, but a client of mine has just told me that Barclays paid out a BB loan to his flat mate, who owns a business which was due to open but hadn't, so had no financial history.

 

Anyone have any idea how?

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By Accountant A
15th Jun 2020 20:23

i7tds

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By Samantha20
08th May 2020 09:51

I just applied and received one for the company I work for. You don't have to prove your turnover at all. You just say what it is and confirm that the loan you are applying for is no more than 25% of your turnover. I couldn't believe it. They don't seem to be doing any checks at all so you can just make up a figure and get 25% of that figure up to the £50k.

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Replying to Samantha20:
ALISK
By atleastisoundknowledgable...
08th May 2020 09:53

This is what I thought probably happened

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By ireallyshouldknowthisbut
08th May 2020 09:54

Why should Barclays care?

They will get 100% of the total sum from the government if it doesn't get repaid and 2.5% interest paid for 12 months in any case.

This underlies the lunacy of a 100% guarantee. Even 5% skin in the game would make 'em do some proper checks. If this was a labour policy people would be jumping all over this as "loony left lending"

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Replying to ireallyshouldknowthisbut:
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By Samantha20
08th May 2020 10:39

Yes exactly, but the Government should care and should ensure that checks are done.

Yet again, a government initiative is open to abuse and they seem to be totally oblivious to it.

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By Cheshire
08th May 2020 12:26

One of my clients rang his business manager (Barclays), who said they would look at a claim over the phone, then prompty told him the amount he could have based on the turnover they had seen through the account. My client advised his actual accounting turnover was less, but they asid they were happy to give him a loan based on what they were seeing, which probably included the loan they had already given him as being 'turnover' when it landed in his current account! They dont care, its guaranteed!

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Replying to Cheshire:
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By memyself-eye
08th May 2020 12:53

We're not in Kansas anymore Toto -

Welcome to the free money tree!

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By AWeb72
08th May 2020 13:33

It really does feel like pre-banking crisis times

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By sash100
08th May 2020 15:17

Its the greatest giveaway ever. I would rather government gave free money to those who really need it. I am annoyed and angry no controls whatsoever are in place.
Do banks check if the directors are based in UK ?

I have a client who has a strike off notice against his company. I will be interested to know if the bank will check this

No doubt tax payers mainly the poor will end up paying for this for years in come in higher Tax and NI when there will be many business owners that will do very well out of this with other handouts too. Some unscrupulous individuals will take the money and run. I understand there are no restrictions what the director can do with the money ?

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By Justin Bryant
08th May 2020 15:51

One wonders why there isn’t revolutionary fervour about all this in that for decades governments have done nothing about homelessness, poverty and all the rest of it on the basis that there is no “magic money tree” (which strictly speaking is correct as it’s a veritable forrest not a tree in the way of a fiat currency printing press), yet are happy to dole out more or less unlimited free money effectively when it suits them to many undeserving people if not crooks.

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