The guidance states: "The scheme is open to most businesses, regardless of turnover, who meet the eligibility criteria and who were established on or before 1 March 2020"
and
"The minimum value of a facility provided under the Scheme is £2,000; the maximum is 25% of turnover up to a cap of £50,000"
I understand the turnover is for the calendar year ended 31/12/2019 (as discussed in more detail here - https://www.accountingweb.co.uk/any-answers/bounce-back-loan )
My questions are for businesses established in 2019 or later.
- Do we look at actual turnover in 2019 or is there any scope to look at the annual equivalent if the business was established part-way through the calendar year? I assume actual, but don't see how that would work for a business establised in January 2020
- How is the max loan calculated for businesses established in Jan or Feb 2020? Do we ignore the turnover calculation and just try to justify to the bank why we need £x?
Perhaps if there is litle or no turnover in 2019, they would only be able to borrow the £2k minimum?
Thanks in advance!
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Replies (5)
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Talk to the Bank? Easy if they have a relationship manager, not so much if they dont.
The 31 December date is in fact the date to be used for 'business in difficulty' assessment and is not necessarily the turnover calculation date - some banks seem to be using that date, but not all. It is certainly not mentioned, as far as Im aware, within the information provided by the British Business Bank.
Random thought - apply for CBILS, provide the figurework to back it up, including some broad brush forecasting had covid not applied, let them say yes (if they do) then ask them to convert to a BBL preior to drawdown (they will probably suggest it before the client does)?
Ive said it before, Barclays have based it on what they see as 'turnover' via the Bank account (which includes other bits as well as sales!).
Client is with Tide - they don't offer BBLS loans, so client is due to apply elsewhere and doesn't have their own bank manager etc to speak to.
She spoke to HSBC and told me HSBC accept estimated turnover figure, which she is planning to give based on Q1 this year so far (which I am not sure is correct!). First she needs to set up a new account with HSBC, which will apparently take 3 weeks!
Can anyone name the banks which allow you to put an estimated turnover figure, for businesses which started in, say, Dec 19 or later?
I’ve about 10 clients who fall into this category and need a loan.
NatWest and HSBC both offer you the option to put annual turnover for 2019 or estimated if you’ve not been trading long enough. For NatWest you need to have a current business account with them but HSBC you can setup a feeder account if you don’t bank with them