Tide had round 70,000 enterprise prospects on its ready record to use for a loan earlier than it introduced earlier this month that it couldn’t get the funding to supply them. Many shoppers had been upset as a result of they’d already been ready for weeks earlier than the announcement was made.
“Lots of them will be very good businesses that would have got through this period if they had had access to emergency loans but could now go bust,” Mr Hollinrake mentioned.
Enterprise homeowners whose lenders aren’t in a position to present the loans have few choices. Other than HSBC and Barclays, many of the excessive road banks are providing them solely to present prospects. Lloyds, Santander and RBS have stopped accepting new enterprise prospects altogether, which they mentioned was to take care of the standard of service to present purchasers and guarantee they’d entry to the loans they wanted. This additionally applies to the manufacturers these banks personal, reminiscent of Bank of Scotland and NatWest.
Usually they are going to lend to firm homeowners who maintain a private bank account with them, even when they do their enterprise banking elsewhere.
A lot of Bounce Again lenders, together with Metro Bank and Starling Bank, are nonetheless accepting new enterprise accounts. Nevertheless, some individuals mentioned they’d been ready for weeks and had nonetheless not managed to enroll and apply for a loan.
“I have had to raid my pension to keep afloat”
Richard Seddon, 55, has been attempting to take action since early May. He didn’t have a enterprise bank account, so tried to open one with Starling, solely to be informed weeks later that he had mistakenly utilized for a sole dealer account.
“You can’t speak to anyone at the bank on the phone, so you have no idea if you’re doing it right,” mentioned Mr Seddon, who runs a enterprise that sells software program to hospitality corporations. He reapplied for a enterprise account and continues to be ready to listen to whether or not he’ll get a loan. “If I don’t get this money soon my business will collapse,” Mr Seddon mentioned. “The situation was desperate two months ago but now it’s even worse. I owe money to suppliers and have had to raid my pension to keep afloat.”
The closure of banks to new company prospects may even have an effect on anybody who desires to arrange a enterprise. One reader, who has simply invested in two vacation cottages, mentioned he wished to run them as a restricted firm however couldn’t discover a excessive road bank that will settle for him.
The Bounce Again scheme was designed to get emergency funding to companies extra rapidly, as homeowners mentioned the sooner Coronavirus Enterprise Interruption loan Scheme was too sluggish. Lenders have handed out £48bn to greater than 1,000,000 companies.
A authorities spokesman mentioned it had offered extra help for enterprise. “There are more than 100 lenders accredited to our loans schemes and we will continue to work to support others to participate and to become accredited lenders,” she mentioned.
RBS and Santander apologised and mentioned they hoped to simply accept new prospects quickly. Lloyds didn’t remark. Tide mentioned it had raised £50m earlier than stopping lending.
Starling mentioned Mr Seddon had not added himself to the record of individuals thinking about a loan when he reapplied. “We advise customers when they join the list that it may be some weeks before they are invited to apply and there is no guarantee that everyone on the list will be invited,” a spokesman mentioned. “We understand this is a very difficult situation. Demand for Bounce Back lending remains extremely high and we’re processing applications as quickly as we can.”