Here are the details of another £50k Bounce Back Loan that has turned sour.
Natasha Iqbal (“Mrs Iqbal”) caused Best One Failsworth Limited (“the company”) to make a Bounce Back Loan (“BBL”) in which she made a wrongful declaration by overstating the company’s turnover.
As a result, the company received BBL funds of £50,000, which it was not fully entitled to.
In that:
- Under the BBL scheme business could apply for a loan of between £2,000 and £50,000 subject to a maximum of up to 25% of turnover.
- The turnover figure required was that for the calendar year 2019, or where a business was established after 1 January 2019 it was their estimated turnover.
- The turnover figure was self-certified by the applicant.
- The company was incorporated on 24 January 2019 and its accounting reference date was 31 January.
- Mrs Iqbal was appointed director on incorporation and, by her own admission, was responsible for reviewing the financial position of the company.
- On 11 July 2020, 06 months following the company’s first accounting period, when Mrs Iqbal knew, or ought to have known that the company had achieved turnover of £79,497, she submitted a BBL application in which she declared the company’s turnover as £206,000.
- On 15 July 2020 the company because of the overstated turnover the company received a BBL of £50,000 instead of the £19,874 it was entitled to.
- On 11 April 2022 the company was placed into Creditors Voluntary Liquidation with a deficiency to creditors of £51,333 of which £49,501 is owed to the bank in respect of the BBL.
