We are a leading National source of Cash Flow Loans for Businesses, including Lines of Credit Style, Loans Against Equipment,
short terms loans and Personal Loans.
Author Biography:Will Sanio,
Owner of
SCF Funding, dba bankstatementloan.com/, has a Bachelor of Science Degree in Finance from the University of Tennessee, Knoxville.
Over 20 Years experience including 10 Years with Wells Fargo formerly Wachovia Bank and First Atlanta Bank. Specializing in Traditional and Alternative lending.
What: $43K for a 2020 Freightliner Cascadia Loan for a driver with bad credit.
Who: An Owner operator with a low credit score, 594 Fico, maxed out, late payments on credit cards and mortgage with charged off Accounts was approved to get a new Truck!
The Truck he had was not reliable anymore.
So why was this Loan a Deal?:
The Owner operator put down $11,000 on the Cascadia.
What: An $84K 2023 New Holland C337 Track Loader for a Subcontractor.
Who: The Sub-contractor had over 20 Years Experience needed a newer Track Model for his Business. He initially tried to get a lease but was not able to because of his credit history and score.
So why was this Loan a Deal?:
The Equipment was newer and had low operating hours.
0:08 Hurricane affect on Business; 0:15 Hurricane Business Loan Fast; 0:33 Hurricane Loan Terms; Video Description: How to get a Business Loan after a Hurricane
Looking for Tips on How to get an MCA Cash Advance? Complete the application above, Call us at 919-771-4177 or
use the Tips below! Information on how to calculate payments, how to get approved and avoid being declined.
How much of an advance you can afford? You will also know if you can afford a 2nd MCA, or even a 3rd MCA.
How to get an MCA Merchant Cash Advance
Supply: The last 4 months bank statements
Tool: Desktop, laptop, tablet or phone
Step 1: How much are the Payments?
VIDEO CLIP below: See if your Company can afford a daily, weekly or monthly: 17 Seconds – 46 Seconds in Clip below.Today’s Video: How to get an MCA Cash Advance. What could be your first Merchant Cash Advance.
Start the process anytime by tapping apply on the bottom right of this screen, or tapping on the end screen, or the apply button on the webpage.
See if your business can afford a daily, weekly or monthly payment.
First, calculate an estimate of what your new daily Cash Advance will be.
Let’s take an example:
Multiply a $10,000 offer amount times a 1.4 Rate Factor. There are 21 Days most Months.
If your Offer Amount is for 7 Months, that’s 21 times 7 = 147
Days.
Take the $14,000 Total Repay and Divide it by 147. That Equals $95.23 Per Day
for Every $10,000.
MCA Total Cost Example
Step 2: Review your Company’s Cash Flow
VIDEO CLIP below: Review Company Cash Flow: CLIP: 47 Seconds – 96 Seconds in Clip below.
Look at the Total Deposits of each of your last 3 Months Checking Account Statements.
Some States require 4 Months checking account statements. Currently California, New York, Florida, Virginia and Utah.
The minimum total deposits into your Commercial Checking Account should be $5,000 a Month or more. The higher the Deposits, the more options are available. Especially beginning at $10,000 a month.
TIP: Average Daily Balance: That is the average balance per day for the Month. You want your Average Daily Balance to be at least $750, but better $1000 or higher.
TIP: Overdrafts or NSF’s. You should not have more than 5 to 7 Overdrafts or NSF’s in any 1 Month, or it is more likely you will be declined.
If you have more, it is better to wait until you get your next statement and those are gone.
What is the Average Daily Balance in your account?
Step 3: Apply
VIDEO CLIP below: APPLY: CLIP: 97 Seconds – 105 Seconds in Clip below.
Find a Lender that fits your company type and talk to a Representative before applying. That will help you avoid unnecessary declines.
Next, Apply. If approved, request the closing docs. Get a Copy of your Driver’s License, Voided Business Check and Proof of Ownership.
Ready? Apply
Step 4: Close
VIDEO CLIP below: CLOSING: CLIP: 106 Seconds – 120 Seconds in Clip below.
Next, close. Review the Contracts, and if you’re satisfied, complete the contracts and expect funding into your Account in 2 to 4 hours.
If you ever have repayment problems, call the Lender to discuss.
Complete the application below or Call us at 919-771-4177.
Today’s Video: How to get an MCA Cash Advance.
What could be your first Merchant Cash Advance.
Start the process anytime by Tapping apply on the Bottom right of this Screen,
or tapping on the end screen of this Video, or on the Apply Button on the Webpage.
See if your Business can afford a daily, weekly, or monthly payment.
First, calculate an estimate of what your new daily Cash Advance Payment will be.
Let’s take an example:
Multiply a $10,000 offer amount times a 1.4 Rate Factor. There are 21 Payment Days most Months.
If your Offer Amount is for 7 Months, that’s 21 times 7 = 147 Payment Days.
Take the $14,000 Total Repay and Divide it by 147. That Equals $95.23 Per Payment Day for Every $10,000.
Look at the Total Deposits of each of your last 3 Months Business Checking Account Statements.
Some States require 4 Months Business checking account statements.
[ ocean surf ] Currently California, New York, Florida, Virginia and Utah.
The minimum total deposits into your Business Checking Account should be $5,000 a Month or more. The higher the Deposits, the more options are available. Especially beginning at $10,000 a month.
Average Daily Balance: That is the average balance per day for the Month. [ teller counting cash ]
You want your Average Daily Balance to be at least $750, but better $1000 or higher.
Overdrafts or NSF’s. You should not have more than 5 to 7 Overdrafts or NSF’s in any 1 Month, or it is more likely you will be declined.
If you have more, it is better to wait until you get your next statement and those are gone.
Find a Lender that fits your Business type and talk to a Representative before applying. That will help your business avoid unnecessary declines.
Next, apply. If approved, request the closing docs. Get a Copy of your Driver’s License, Voided Business Check and Proof of Ownership.
Next, Close. Review the Contracts, and if you’re satisfied, complete the contracts and expect funding into your Account in 2 to 4 hours. [ clock ticking ]
If you ever have repayment problems, call the Lender to discuss.
That will help your business keep [ desert wind blowing ]
it’s ability to borrow again in the future. [ city street sounds ]
For additional help including forecasts and creating financial statements, visit SCORE.org
00:02 Decide on your Business Name 00:08 Register your Business 00:53 Get an EIN or TIN for your Business 01:05 Gather all Documents from Business Registration 01:12 Open the Checking Account; Video Description: How to open a business checking account. Info on Tax ID number, Articles of Incorporation and licenses. Tips on Company Structures.
Watch Video above. Click or tap arrow to play. Call us at 919-771-4177 with any questions.
How to open a business checking account
How to Supply: EIN Letter, but not for a Sole Proprietorship using their SSN. Similarly, articles of Incorporation if Incorporating, or a License. Also Money to open checking Account, ID (Identification).
How to Tool: Desktop, laptop, tablet or also phone.
Estimated Cost: Approximately $100 minimum to start a checking account but the amount will depend on the Institution.
Step 1: Pick a Business Name
Choose a Business Name
Decide on what you will name your Business.
Choose a name that is relevant to your business type and easy to remember. Shorter business names that the public will easily identify can help build brand awareness.
Also decide if you will be 100% Owner or if there will be additional owners.
TIP: Avoid changing your business name in the future.
Step 2: Register Your Business
Go to the Secretary of State to Register your Business.
Go to the Secretary of State for your State. You can use this online tool, Searchsystems.net to Search. Find your State. Choose the company search option and do a name search to see if your chosen business name or similar name is available.
If it is available, decide on a Sole Proprietorship, Partnership, LLC or regular Corporation setup. An LLC is popular with small businesses for the legal protection it provides the owners.
Ask your County or City of they require any separate licenses.
Next, get an EIN number for your business through the IRS. This is needed for all businesses except Sole Proprietors that use their Social Security Number for taxes and tax returns.
Step 3: Gather all Documentation from Business Registration.
Gather all documents needed to register the business checking account.
Have ready your business name, Articles of Incorporation or Business License, and EIN Letter.
Step 4: Contact Institution and Open the Account.
Open your business bank account.
Go to the Bank to open the Business Account with all of your information: EIN Letter, Articles of Incorporation or Business License, and business name. If the bank is online, begin the process online.
TIP: All owners need to be present and show Identification. Acceptable identification is a valid Driver’s License or State ID Card or a Valid Passport.
Complete setup and enjoy the Account!
Conclusion: How to open a business checking account.
If you follow the steps above, then you can open a checking account for your company with no hassles.
If you have been using a personal checking account to run your business, then begin depositing funds into your new company checking account immediately.
Finally, you can use the cash flow in your new checking account to obtain services in the name of the business, such as bank statement loans, credit, credit card processing and other services.
Show Video Transcript Details
How to Open a Business Checking Account
How to open a business checking account.
Decide on what you will name your business. Shorter relevant names are easier to remember. Avoid changing your business name in the future.
Step 2: Register your Business. Go to the Secretary of State for your State.
You can use this online tool, https://publicrecords.searchsystems.net/ to Search. Find your State. Choose the Company Search Option and do a Name Search to see if your chosen Business Name, or similar name, is available. If it is available, decide on a Sole Proprietorship, Partnership, LLC or regular Corporation setup.
An LLC is popular with Small Businesses for the legal protection it provides it’s Owners. Purchase your Business Name. Ask your County, or City, if they require any separate Licenses.
Next, get an EIN Number for your Business through the IRS. This is needed for all Businesses except Sole Proprietorships that use their Social Security Number for Taxes and Tax Returns. Gather all Documentation from Business Registration. Have your Business Name, Articles of Incorporation, or Business License and EIN Letter ready.
Contact the Institution and Open the Account. Go to the Bank or Online to Open the Business Account with all of your Information: EIN Letter, Articles of Incorporation or Business License, and Business Name.
All Owners need to be available and show Identification. Acceptable Identification is a valid Driver’s License, or a valid Passport. Complete setup and enjoy the account.
To get a business loan, business line of credit or simple credit card processing for your business complete the contact form below.
This Article covers how to open a business checking account. Documents needed such as Tax ID number and getting a Secretary of State Listing is included.
To obtain needed services such as bank statement loans, asset based financing, or learn other self help for business issues including videos here. Watch just the Video Page here.
We are a leading funding source for all Small Businesses looking for the best alternatives to Banks.
Author Biography:Will Sanio, Owner of SCF Funding, dba bankstatementloan.com/, has a Bachelor of Science Degree in Business Administration with a concentration in Finance from the University of Tennessee, Knoxville.
Over 20 Years experience including 10 Years with Wells Fargo, formerly Wachovia Bank and First Atlanta Bank. Specializing in Traditional and Alternative lending.
Will Sanio: University of Tennessee Diploma – Bachelor of Science in Business Administration with concentration in Finance – Click or Tap to Enlarge Image.
We keep your loan from being declined before funding in final underwriting. No more last minute turndowns for low or negative balances, low month to date deposits, overdrafts, background problems and defaults. We stop it all for customers and brokers.
Watch: Denied just before being closed, above! Apply below now or call 919-771-4177.
Call 919-771-4177 for more info.
How did your Loan die right before closing?
low month to date deposits. Your account did not have have enough revenue since the beginning of last month.
Most applicants provide the most recent (3) months statements and not the current month.
Killed because your current balance was too low. Your balance must be 2 to 3 times the payment amount.
Negative account balance (Overdrawn). An overdrawn account is a reason for a last minute decline for most business loans.
Killed at the last minute for personal Background history. Your personal history has either a Felony, Misdemeanor, drug charges, or other convictions.
Died after the Decisionlogic bank verification. There was some problem with the account.
Previous defaults. Your business has an old default and it was discovered during the final check before completion.
New recent funding since the beginning of last month. Your company just borrowed before now trying to close out the current request.
Get funding instead of a shock at the last minute.
Apply above so you can get fixes and expert guidance to help you get results immediately!
Conclusion
In summary, your deal died in final underwriting because no one was looking out for you.
There is much more than credit, start time and recent monthly deposits to getting an approval, and funding.
Show Video Transcript Details
killed just before Funding
00:00 Introduction 00:05 Killed in Final Underwriting 00:12 Problems Fixed 00:21 Credit 00:22 How to Apply[ swords clanking ] Did your business ever fight to get A Business Loan or MCA, And then, right before closing, get Killed in final underwriting? Apply with us instead. [ race car engines ] We’ll get your Loan past the finish line, and Funded.[ cash rustling ] From low current month deposits, low bank balances,[ police siren ] Background problems and more,[ desert wind ]We’ll get you back up [ water splashes ] And on to Smooth Sailing and Funding. [ water bubbles ]Low Credit Scores OK. Find out how much Money you can get TODAY.
List of the Top 9 Reasons why your MCA was declined
Top 9 Reasons Your MCA was Declined:
1. Affordability
This MCA decline reason means your company cannot handle the new payment without significant problems. This is often a decline
reason when your total monthly deposits are under $10,000 per month.
If you know you can manage the payment, then prove it! Provide your current bank statement, other accounts you may have, or tax return that shows you have the cash flow.
Make sure the investor isn’t using the lowest month to make their decision. Ask them to use the average of your deposit totals for your most recent 3 months.
This almost always happens when the business has cash flow problems during the current month.
The verification failed for either low deposit volume, overdrafts and NSF’s, or not enough individual deposits. It is usually some combination of these issues.
Ask specifically what they saw in the current Month that they don’t like.
Decide if this can improve enough to qualify in the next few days. If not, apply above to get another funding option.
4. Credit Score Too Low:
Some programs require a minimum credit score of 550, 600, or even 650.
Find out what score is required. If it is too high, apply for a program that will accept your credit score before you apply.
Ask the lender what minimum sales amounts are they looking for?
Also ask how much do you need to put into your account in the next week or two to qualify. By doing so, you may be able to qualify before the current month is over and not have to wait until the next month.
6. Recent Overdrafts or NSF’s:
Overdrafts or NSF’s in your checking account in the last 3 months were excessive, and why your MCA was declined.
Add up exactly how many Overdrafts and NSF’s you had. Ask the lender what the maximum is and how long before you will qualify.
7. Not Enough Deposits Per Month:
There were not enough individual deposits. Some funders require 5 or more each month.
Make more frequent smaller credits if possible.
Find a source that will accept the number per month you are now making until you can start making more. Ask in advance what their mimimum is.
8. Time in Business Too Short:
The time in business is not long enough through the Secretary of State or on your License.
Ask the funder how long they require. If you are within 30 days of the minimum, then ask for an exception.
If they refuse, then find a program that will accept how long you have been operating.
9. Background Check Failed:
A background check revealed something they didn’t like. When you get this MCA decline reason, learn more about a Business Loan with a background problem here.
Ask the MCA company specifically what the problem was, and if that matches what you know to be true.
Shop other MCA companies that have programs that accept your background issue before applying.
Unsecured financing has less risk. You do not need to offer collateral with a loan against your assets.
Up to 18 Month Term options for 600 and 1 Year in business and higher.
Get money against your cash flow again after payoff. Use it to get money more than once.
Programs for as low as $2,000.
Lower offers makes this a better option than regular title loans. No need to risk your vehicle or equipment for a small amount of money.
Need more general info on developing your business? Visit the SBA for resources
such as local assistance, business guides and business plans.
Conclusion: Why your MCA was Declined.
Your MCA was declined for one of these reasons listed above.
Take the actions listed and you can still get an approval offer and funding quickly!
We are a leading funding source for all Small Businesses looking for the best alternatives to Banks.
Author Biography:Will Sanio, Owner of SCF Funding, dba bankstatementloan.com/, has a Bachelor of Science Degree in Business Administration with a concentration in Finance from the University of Tennessee, Knoxville.
Over 20 Years experience including 10 Years with Wells Fargo, formerly Wachovia Bank and First Atlanta Bank. Specializing in Traditional and Alternative lending.
Will Sanio: University of Tennessee Diploma – Bachelor of Science in Business Administration with concentration in Finance – Click or Tap to Enlarge Image.
Where does this trailer think it’s going? It’s going to get it’s owner, Kyle, money
for his business.
Kyle needed a business loan fast and had no assets. But he had a trailer, so
we got him a loan on his gooseneck. Get funds against any trailer, flatbed, gooseneck, semi-trailer, enclosed, lowboy, dump, hydraulic, car carrier and many more. find out how much money you can get today.
Click or Tap on the apply button, or link in the description,
or call us at 919-771-4177 or visit bankstatementloan.com.
Need Advice for your business such as help with financials or tax returns or even a business plan? Visit the SBA for expert help.
So which Trailers Qualify to get a loan on a trailer?
Aluminum
ATV
Cargo
Custom
Dump
Enclosed and Open Car
Equipment
Gooseneck
Flat bed
Heavy Duty
Landscape Utility Trailers
LivestockTilt
Low Boy
Low Profile
Motorcycle
Refrigerated
Semi-Trailer
Tandem axel deckover and Dual Deck
Used Trailers
Utility
Racing
Vending
AND MORE!
Which Manufacturers? American Hauler, ATC, Big Tex, B Wise, Bri-Mar, CAM Superline, Car Mate, Cargo Pro, Carry On, Covered Wagon, Diamond Cargo, Homesteader, Master Tow, Premiere, Sno Pro, Sport Haven, US Cargo and more.
Bad credit and low scores down to 500 may still qualify.
So do I qualify? Do you own your Trailer outright and have a free and clear title ? Then you pre-qualify.
You don’t own it outright? Ask for our straight cash only program. Even when you still owe on your trailer! However, do you also have other equipment?
We are a leading funding source for all Small Businesses looking for the best alternatives to Banks.
Author Biography:Will Sanio, Owner of SCF Funding, dba bankstatementloan.com/, has a Bachelor of Science Degree in Business Administration with a concentration in Finance from the University of Tennessee, Knoxville.
Over 20 Years experience including 10 Years with Wells Fargo, formerly Wachovia Bank and First Atlanta Bank. Specializing in Traditional and Alternative lending.
Will Sanio: University of Tennessee Diploma – Bachelor of Science in Business Administration with concentration in Finance – Click or Tap to Enlarge Image.
Was your business loan declined for a drop in mtd month to date revenue? Does your business have low monthly revenues such as less than $10,000 a month? Or Read the Full Article: Monthly Deposits under $10,000 a month. Review 7 ways to improve your numbers now and get approved as soon as possible by Applying below!
Complete the Start button above
or Call us at 919-771-4177
Call 919-771-4177 for more info.
1. Understand your Statement. 2. Why were you declined for your MTD? 3. Total Deposits. 4. Average Daily Balance. 5. Number of Deposits. 6. Overdrafts or NSF’s. 7. What can I do?
7 Ways to Fix a drop in deposits and get approved ASAP!
1. What do lenders do with that Statement?
The statement is used to review your cash flow as of the beginning of the new banking cycle, or your most recent cycle date. Follow the link here to get a Month To Date (MTD) Statement in a PDF form.
2. Why were you declined for your Month To Date?
The statement used to decline your business will have lower than average deposits and be weaker overall than prior statements. Lenders ask for recent statements when applying and do not usually ask for interim information.
They only request it approaching the end of the month, or if the most recent statement was weaker than older ones before it. After the 20th, lenders may ask for the current cycle business account activity statement because a lot may have changed in those last 3 weeks.
Expect a request for the current statement when the last full statement was lower than average. Lenders are looking for trends in your business revenue, especially negative ones. Declines are not the end of the line. Consider the top decline reasons as well as other loan types such as a loan against equipment.
3. Total Deposits in the current month.
Your current monthly totals from business revenue is the most important information mca lenders review in the current statement cycle.
Prorate your revenues to estimate what the full numbers will be for the entire current 30 day cycle.
Example:
Your company had $35,000 in revenues from March 1st through March 12th. What is the company be expected to do for the full 30 days if they maintain the same revenue pace?
$35,000 X (31/12) = $90,417. To breakdown the math in simpler fashion, 31/12 = 2.58333. Since there are 31 days in March and it is the 12th of the month, the prorated fraction is 30/12. To express that as a % , 1/2.5833 = .387. This means that .387% of March has gone by.
Almost the same prorated amount is derived by dividing the $35,000 interim deposits instead of multiplying, as follows:
$35,000 % .387 =$90,439. The $22 difference is due to rounding.
4. Average Daily Balance.
Why is it important? When your account’s average daily balance is low, then payments are more likely to bounce.
Average balances below $1,000 and especially below $500 are red flags in credit review and will get your request declined fast.
Work hard to keep a minimum balance of $1,000 and higher because it increases your chances of approval.
Lower average daily balances in the current cycle are very closely looked at in the review process.
5. Number of Deposits.
At least 5 deposits per month are desired for cash advances. Other types of loans do not have this requirement, but more are better.
More usually means you have a higher number of customers which is considered a lower risk.
6. Overdrafts or NSF’s.
Overdrafts and NSF occurrences hurt the most in the current month. Many customers say they do not want to keep money in the account.
There is a difference between not keeping excess money in an account and having overdrafts because of it. Negative balances come from not having enough money and bad money management.
7. What can you do about a drop in month to date sales ?
Try to increase your deposit totals before the end of the cycle. Deposits made just prior to the end of the statement cycle instead of the first day or two of the next one help current numbers.
Don’t let your balances get too low causing returned payments that show as NSF or overdrafts.
Ask what you need to have for a chance at an offer now and you may be given target numbers. These will let you know if the numbers are achievable. If all else fails, consider a micro business loan.
Can my business be declined for low current month’s sales?
Your business can be declined for having a drop in revenue even in the current month that is less than a 30 day cycle.
Is there anything I can do to get approved now?
Following the cash flow strategy outlined here gives your business a chance of getting funding now. There is still be time to correct the numbers in the same statement cycle.
Are there options that do not look at the most current deposits?
There are asset based options with a monthly payment that usually do not look at the most current deposits. Those merit a close look for businesses that cannot wait for their cash flow to recover.
Conclusion
Declines for a business loan due to a drop in month to date revenues is a real possibility. Most lenders do not look closely at current 30 days, but some do.
Understanding what the threats to an approval are and the actions to take. Help your business steer clear of an unexpected turndown due to dropped revenues in the last 1 – 3 weeks.
Keeping a close eye on total and average balances and overdrafts during the current 30 day cycle can make the difference between an approval and a last minute decline.
We are a leading funding source for all Small Businesses looking for the best alternatives to Banks.
Author Biography:Will Sanio, Owner of SCF Funding, dba bankstatementloan.com/, has a Bachelor of Science Degree in Business Administration with a concentration in Finance from the University of Tennessee, Knoxville.
Over 20 Years experience including 10 Years with Wells Fargo, formerly Wachovia Bank and First Atlanta Bank. Specializing in Traditional and Alternative lending.
Will Sanio: University of Tennessee Diploma – Bachelor of Science in Business Administration with concentration in Finance – Click or Tap to Enlarge Image.
Choose from a loan against equipment and even a large business loans that you can still get even with missed cash advance payments. Closing your business checking account to avoid payments can cause big problems for your business. Apply below.
How to get a business loan with missed MCA payments:
Steps and tips on how to get a business loan after missing mca payments.
Tools needed: internet connection, computer, phone. Supplies needed: Time available
Step 1 Evaluate your missed payments.
The number missed is important. Missing 1, 2 or 3 payments is considered minor and should not prevent your business from being approved for more unsecured type bank statement loan funding.
Missing more than 3 consecutive daily advance payments may trigger denials with other lenders. Bringing your account current is the first step to get new funding.
Communicate with the lender during the process. Regardless of the outcome, it almost always causes the lender not to take more adverse action against you when behind. It will also make new funding much easier.
Evaluate your missed payment status
Step 2 Match funding options
Tip: Begin a search for other funding options. Start the search broadly with other programs that your business may qualify for. Decide which programs are the best fit for your business.
Look at the qualifying requirements for other programs. Eliminate those programs that your business likely could not qualify for. Prioritize and choose programs you can get approved for instead of programs you prefer.
Match the best programs that best fit to your business.
Step 3 Apply
Apply for the best matching program that allows for recent missed payments on other financing. Talk to a representative before applying when possible.
Tip: Give them information on your overall profile and discuss your chances. If it is still a good fit, then apply.
Step 4 Close approval
Review terms and conditions of any approval offer. Close the transaction if your business can handle the payments and the funding will assist in generating future revenue.
Step 5 Make a plan after denial.
If the request remains a denial, then make a plan. Understand the decline reasons. There may still be a chance to reverse the decision and get an approval. Try this first. Consider applying with other lenders when you cannot get approved.
Apply with other lenders. If that still does not work, do not stop the process.
Begin working on correcting the reasons that were used for denial during the first funding request. Whether it is credit, financials, or cash flow, try to improve this month over month until your profile meets the requirements of the previous lenders.
Make a short term plan if the denial remains in place.
Missing just 1 mca payment should not cause your business problems. But what if you have more missed mca payments? What can you do to avoid problems? In this post we will talk about 4 initial steps further below to take if you cannot pay cash advance payments. Author Biography: Will Sanio
Also consider if you can instead get out of your merchant cash advances now. Payoffs may be possible through a longer term loan that are asset based. Also read what to do if you have been declined more funding due to missed mca payments.
If you are not going to be able to get current, here are options to get out of an mca cash advance, or watch the get out of mca video.
Apply below to get started now on safe ways to fix this problem before lenders take action against your business.
You have missed mca cash advance payments. What should you do now? Several immediate solutions to save your business.
What can you do after missed mca payments?
1. Communicate with the lenders immediately.
Contact the cash advance companies right away. Do not think the problem will work itself out or that you will probably catch up in a couple of days. Communication is key. It is better if you contact them before you miss more payments. However, if you already missed a payment then contact the advance companies that day or the next day at the latest. Maybe the missed payments are not your fault.
2. Tell the cash advance companies what has happened and why.
But how do I explain this to the mca companies?
It depends on your situation. What is your cash flow situation right now? Can you begin making the payments again right away? Figure out what you can pay, when, and how often. Let them know what is happening with your business. If you have a good reason for missing payments, tell them that reason. If you can back it up with documentation, all the better. Being proactive and communicating will be your best option at the beginning. If the lender has no coj confession of judgement, you will still want to work out a payment plan to avoid a default.
3. Can you start making payments again? If so, make an agreement with the advance companies to begin.
Call the cash advance companies even when you can start making payments immediately. They still want to know why you missed mca payments. That will help your case. You may end up missing another payment later you did not expect to miss. It is better if you are already on record as being in contact with the lender.
4. Payment plans after delinquent mca payments
Payment plans are best when the business can neither keep making the daily payments or paying off the advance. The cash advance company may be very willing to set up a payment plan. They will be able to get payments in full and the merchant will make the total sum of payments. It is up to the lender to do this. If your business wants to go this route then be ready to explain to the cash advance company why a payment plan will work for both of you.
Other Considerations on handling your loan if it is past due
Missing consecutive payments
If you expect to miss more payments consecutively, then you want to decide if you can payoff the advances first. Paying off advances with another loan is better than continuing to miss payments. You can choose from unsecured options such as bank statement loans and a large business loan if you need a lot.
Bouncing more mca payments.
If you know you cannot sustain your payments then paying off the advance may be the best option. This is because missed payments will make it much more difficult for your business to borrow in the future and make this your worst option. Many merchants would rather not take out a new loan. However, if you are approved for a new loan that can payoff loans you cannot pay, you should strongly consider doing so. Many businesses cannot even get approved for a payoff and don’t have that choice.
Payoffs
Paying off your merchant cash advances may be the best option. But when is it better to payoff and when is it better not to? It is usually better to payoff the cash advances when you know you cannot keep paying the current payments. Paying the advance off with another loan works very well if you have less than 3 months or so left on the exiting advances. Taking out a loan to payoff a low balance is still much better than missing mca payments and defaulting. You can avoid damaged credit, court action and trouble getting loans in the future.
When does it make sense to payoff one loan with another?
Example: A merchant has an advance with a daily payment of $100 and has a remaining balance of $3,000. He has 30 payments left but he cannot keep making those last payments and will go past due and default. Before going past due the merchant is offered another loan for 6 months to payoff the $3,000. The new daily payment will be about $35 per day for 120 days. The borrower can afford this easily. Problem solved. The business now has a payment they can afford and does not have to worry about paying the advance on time.
Extending the term
Extending the term and lowering the payments is usually similar to a payment plan. Sometimes it is more informal and the cash advance company will just let the borrower continue making payments past the term without a formal contract. At other times a formal new contract will be written that replaces the old contract. Expect the mca company to charge penalties, fees and more interest as part of the new contract.
Lowering Payments
Getting your mca cash advance company to lower the payments works best when your business just needs short term cash flow relief for a week or two. Your business may just have a brief cash flow problem it needs to work around. Be aware that mca companies are not receptive to businesses calling in multiple times and asking to lower payments for a while. It is supposed to be a rare request rather than one of convenience. Some lenders may only do this once during the term of the contract. If you think your business will need to ask for lowered payments several times then find a different option.
Pausing payments
A pause for one to three weeks may be all a business needs. As with lowered payments, your business has to be sure it will be able to restart and continue payments when the payment pause is over. You should not pause payments if you need a longer term permanent solution. Sometimes businesses will ask to pausing payments when they know they will have a problem again when the regular payments start back up. If this is you, then you should put all your efforts into solving the problem permanently on the front end.
Settlements after significant missed mca payments
A settlement directly with the mca cash advance company can be considered when other options will not work. Settlements usually happen after a merchant has failed with a payment plan or lowered payments and not able to handle regular payments anymore. It is a step before a default but still considered better than a default situation.
Beware of 3rd party settlement companies that tell you to put a stop payment on a merchant cash advance company.
We believe this is the worst choice in almost all cases.
Many settlement companies will tell you to do this to buy time for them to negotiate with the mca cash advance companies on your behalf. However, they still want you to pay them a lot of money upfront before they start negotiations for you. We believe this is a very bad idea for your business for several reasons.
Let’s break down why:
Your advance will be declared in default immediately when you put a stop payment on them. You certainly will not want to even consider this if you have not read your MCA contract in detail. The contract will tell you all the actions the advance companies can take when you put a stop payment on their daily Payments. Putting a stop payment on a merchant cash advance will definitely result in the strongest response against you by the mca companies. If they have a coj, then they will file it against you almost immediately. The settlement companies telling you to do this do not have to deal with the problems you will have! Do not do this!
Beware of companies that tell you to close your business checking account
An intentional default happens when a borrower takes an intentional action not to make good on the contract. This is almost always combined with little or no communication with the cash advance company. Lenders think of the borrower as trying to evade an obligation and contractual promise to pay. Worse, their contract usually includes specific language that talks about what actions and remedies they can take if the borrower closes their account. We believe this is a bad option for almost all borrowers. Contact us above for much better options!
Defaults
Defaults are the least desirable option. The lender has declared that they are taking a loss on the loan. The worst adverse action has already been taken against the merchant, which may include filing a coj confession of judgement. All efforts should be taken to avoid a default on a cash advance.
If the mca company has a coj confession of judgement, they can have it enforced through a court in one or two days. Sometimes they can have it affirmed by a court the same day.
What can the cash advance company do then?
They can have the sheriff contact any bank they wish and demand that the bank verify if your business has a checking account there. If so, the cash advance company can debit all the funds out of your account.
In conclusion
The tips above can guide you on how to handle specific situations with cash advance payments. If you continue to struggle with debt long term the National Foundation for Credit Counseling, NFCC can help with budgeting and strategic long term debt planning.
FAQ Frequently asked questions on missed mca payments.
My business sales were down recently and I cannot pay my daily cash advance payments. What are my options?
Do not stop communicating with your mca merchant cash advance companies. Consider any ongoing relief programs they can offer. Look at asset based alternative programs to payoff your advances in the short and medium term if you have collateral.
I missed an mca payment. What can the merchant cash advance company do?
If you have only missed one or two payments then the mca companies are very unlikely to take action besides trying to contact you. If you have not talked with them yet and you miss more consecutive payments, then contact them asap.
My cash advance company has threatened to take action against me for missing payments. What can I do?
If your mca company has threatened to take legal action against you it means they probably have not done so yet. You still may have a chance for a good result. Look at what you can pay and consider offering to make the maximum payment you can.
If they refuse then put your offer in writing and email it to them certified. This may work strongly in your favor if there is future court action against you. It shows that you communicated with the cash advance companies and tried to work out a solution to fulfill your obligation to them with your worsened financial situation and they refused to work with you. Whatever your outcome ends up being, this action should put you in the best possible position later.
I don’t want to talk to the mca companies. They are very aggressive, rude and threatening. Why should I talk to them?
Talk with them because if you don’t they will take action against you. They may be able to put a freeze on your business checking account or block your account. You will not be able to use your business checking account if they do that. That will be the worst result for you and your business. Contact them to see if you can come up with a solution.
My cash advance company said they can lower or pause the payments. Which one is best?
Pausing the problems is best when your business has a short term cash flow problem for a few weeks and will be able to begin making the full daily payments again after that. Lowering the payments will be best if your business is going to keep having trouble making the regular payments later. If you cannot make the regular mca payments later then it is better to get the payments lowered long term until you have paid off the contract.
I have some delinquent mca payments right now. Should I payoff the mca payments or try to work out a compromise?
Payoff the cash advances if you are able through another loan when you cannot keep making the daily payments and will default. Work out a compromise with the lender when you have the cash flow to make a lower payment. Ask them not to declare you a default account.
Is it good for a settlement company to tell me to close my business checking account so that the mca companies cannot debit my daily payment?.
You should not close your business checking account to stop daily mca debits except in some rare cases. Closing your account automatically causes you to be in default. The mca company can also declare the act of closing your business checking account to stop the daily debit as an intentional default.
I missed some daily mca payments and the advance company is telling me I am in default. Can they declare me in default?
If the contract says missing a certain number of payments puts your account in default and you missed that number of payments then they can declare you in default. Negotiating is usually better even after you have been declared in default on a cash advance. Communicating with the advance company will usually get the best possible outcome for your business.
FAQ: How to get a business loan with missed mca payments:
Can I get a business loan with missed mca payments?
Yes, you can get a business loan with missed mca payments. Review the decline reasons with the lender to see if the decline can be reversed. Finally, you can work on correcting the denial reasons to get funding.
Can I get another cash advance after missing payments?
It is possible to get another approval. An offer will depend in part on how many were not made, when they happened, and if they are still past due. Getting the account current is the most important step. Staying in frequent communication with the lender will help your chances as well.
Do missed cash advance payments show on my credit?
Untimely payments do not show up on your personal credit report if the lender has not declared a default. Default accounts may show up on personal or business credit. Check your contract. It may provide information on how and when the lender reports delinquencies.
Conclusion
Being declined for missed mca payments is something that can be overcome. Don’t wait several months to get funding.
Try to reverse the decline decision with any current lender. Look for lenders that will approve your profile the way it is now. Then work on correcting all your main decline reasons for the future.
We are a leading funding source for all Small Businesses looking for the best alternatives to Banks.
Author Biography:Will Sanio, Owner of SCF Funding, dba bankstatementloan.com/, has a Bachelor of Science Degree in Business Administration with a concentration in Finance from the University of Tennessee, Knoxville.
Over 20 Years experience including 10 Years with Wells Fargo, formerly Wachovia Bank and First Atlanta Bank. Specializing in Traditional and Alternative lending.
Will Sanio: University of Tennessee Diploma – Bachelor of Science in Business Administration with concentration in Finance – Click or Tap to Enlarge Image.
0:00 Less than 3 Months Bank Statements; 0:05 Eligibility; 0:15 Personal Checking Account; Video Description: MCA with less than 3 months business bank statements. This program matches well with newer businesses and companies that have been using a personal checking account to run their business and just opened a business account.
One Month’s Bank Statement MCA’s
For New businesses and More!
MCA option available with as little as one month’s bank statement and some funding options with
less than 3 months bank statements and time in business. Restrictions Apply, ask us how!
1.As little as 1 Month’s bank statement required.
2.New Businesses.
3. Businesses that have been using a Personal
Checking Account for their business and just recently opened a Business Account.
Apply above:
New Business: Loan program
New businesses can get approved with just the most recent month’s statement and the fast 15 second application. Don’t forget to be ready for the business checking account verification. Renew the loan and increase the approval amount as your sales increase.
This program is excellent for
New Businesses.
Companies that expect to have big swings in business revenue
Businesses that want to establish a relationship with a lender.
With this program, all the most recent 3 or 4 months bank statements may not be required.
Typical Existing Programs
Almost all current programs require the most recent three months bank statements and a month to date statement.
Why? Underwriting wants to see how the company’s cash flow has been over the most recent months. They take the average of those 3 months and issue an approval based on the average.
Example: A business provides statements for the last 90 days and has the following total deposits during that time.
July: $10,000
June: $15,000
May: $10,000
The average per month is calculated as follows:
$35,000 % 3 = $11,666 per month. In this example, the lender can make an offer knowing that the business brings in an average of $11,666 month.
Lenders cannot calculate an average with only the numbers for the last 30 days. If the business deposited $10,000 in July, then the lender will make an offer based just on that 30 day total.
An offer may be slightly lower, but the business has the opportunity to get a higher renewal offer quickly. As sales increase, the business can get a much higher renewal offer.
MCA Cash Advance: Less than 3 Months Bank Statements (Video Transcript: Click to Expand)
Need an mca cash advance with less than 3 months bank statements ? Even as little as 1 months statement? We have that program. If you have less than 3 months business bank statements, your business may
Qualify and be eligible for funding. You’ll find what you need here.
Eligibility
This is a unique option to help new businesses. It’s also for companies that have been running their business revenue through their personal checking account because they never opened an account in the name of the company when they started. We have even just added more funding options for these types of qualifying Businesses. We heard you loud and clear and we are delivering. Some Conditions and restrictions apply. Apply now or call us. Businesses are almost always turned down flat if they don’t have those 3 or 4 months business bank statements. But what if I don’t qualify for this option you ask? We have several Options to qualify just about all businesses. Click or Tap on the Apply Button or
Link in the description, or call us at 919-771-4177 or visit bankstatementloan.com.
FAQ on business loans with only 1 months bank statement.
Can we get a loan with just 1 month’s bank statement?
Yes. You only need to provide the first month’s statement as a brand new business. Businesses that had a strong month since the 1st of the current month can provide a month to date statement to get a higher offer.
What if our first month had low sales?
You may still be able to get a starter offer. As your sales grow, you will be offered higher amounts quickly. This is a relationship product that your business can use like a Line of Credit.
Can we get approved with only a few weeks in business?
You only need 4 weeks or more in business. If the business began the previous month, then provide information since the beginning of the new month. This can be a MTD Month to Date statement.
Conclusion
New businesses have limited or no funding options. This new program allows them to get capital after only 1 month.
Even better, a relationship is established with the lender. The borrower can get more working capital sooner and for larger amounts as the relationship is developed.
We are a leading funding source for all Small Businesses looking for the best alternatives to Banks.
Author Biography:Will Sanio, Owner of SCF Funding, dba bankstatementloan.com/, has a Bachelor of Science Degree in Business Administration with a concentration in Finance from the University of Tennessee, Knoxville.
Over 20 Years experience including 10 Years with Wells Fargo, formerly Wachovia Bank and First Atlanta Bank. Specializing in Traditional and Alternative lending.
Will Sanio: University of Tennessee Diploma – Bachelor of Science in Business Administration with concentration in Finance – Click or Tap to Enlarge Image.
A merchant loan closing call is often required before the lender wires funds into your account. They will alert you when you need to complete the call and if there are still any closing requirements that need to be met, also known as closing stipulations. This usually happens after the bank verification. Watch the Video: Decisionlogic bank verification. However the closing call still happens before the funds are wired to your business account.
But what exactly is a merchant call? Why is it important? How do you pass it, – or fail it?
Consider the top 4 ways, detailed further below, to easily handle a merchant closing call.
1. Give fully accurate information. 2. Don’t withhold anything critical. 3. Do not volunteer information. 4. Do not answer if you are unsure.
Apply above: For business loans with expert guidance to help your business get past ANY issues and get funding today!
How to pass a merchant loan closing call
The lender is making the borrower closing call to you.
4 Top ways to insure the merchant loan closing call is successful and you get funds.
1. Give fully accurate information:
When the lender calls, always accurately answer every question.
Even for minor issues, always give completely accurate answers. This also includes clarifying things. You may be asked about the most recent cash flow in the account since the beginning of the most current month, also known as month to date or MTD statement. The lender may want to know if your cash flow has changed since the beginning of the month. Make sure your balance is not low when the loan closes. Having about three times the daily payment is safe.
Example #1:
The business address on the application is a mailing address rather than the physical address. The lender confirms the business address with you. Let the lender know the address listed on the application is not the physical address for the business. Give them the physical address if they ask for one.
Another example is if the lender asks if you are the owner. If there are more owners, let them know about each one.
Other examples can include giving updated information on the company such as product lines, website detail and a full explanation of what the company does.
2. Don’t withhold critical information
If you have important updates that the lender does not know, tell them or give them an update during the live merchant loan closing call.
Any updates not provided before closing can backfire and cause major problems later. Even if one of these reasons means your business loan does not close, it is better to work through the issues now.
Example # 1:
A company buyout. You are in negotiations to sell the company and have not told the lender. This is critical information they would definitely want to know and likely would not approve the request if they knew.
Example # 2:
You are 1 of 2 owners of the business guaranteeing the loan. You plan on buying out the other owner after closing. It would be advisable to tell the lender what your plans are. The lender approved the funding based on the current owners of the business. If the lender knew one of the guarantors will be bought out shortly after closing, they may not approve the request.
Example # 3:
The IRS or state is filing a tax lien against you personally, or your business.
If you need money to pay irs business taxes and the IRS or State is about to file a lien against you or your business, it is risky not to tell the lender about this.
The loan contract may say the lender needs to be made aware of any impending liens that may be filed against you. Not disclosing this type of information could be considered a violation of the contract.
Example # 4:
Outstanding liens on assets. The lender does a search of existing liens and may not find your listed assets as encumbered. The lender must be told about any liens they did not find in their search.
Sometimes previous lenders may have put a blanket lien on assets and those assets are not itemized at the Secretary of State. Such liens are sometimes called a lien on all assets, including furniture, fixtures and equipment. This type of lien may not list a specific asset, but still includes that asset. Tell the lender which specific pieces of equipment are encumbered.
3. Do not volunteer information
In general, do not give information that you are not being asked about.
Providing anything not asked for has the potential of stopping the closing. You may be telling them something they did not know about and will not like. Even if it is minor, it may be enough to cause the loan status to be put on hold and then declined.
4. Do not answer if you are unsure.
Many times we want to get tasks over with. This causes us to sometimes answer questions when we are not completely sure about our answer. Don’t do this! If you are not sure, tell the lender you will check and call them back.
A merchant loan call is when a lender is about to close and fund a loan. One of the closing requirements is they call the borrower just before funding to confirm their identity and the loan request.
What do I say on a loan closing call?
Always give correct information. Do not withhold anything critical. Also do not volunteer any information or answer questions when you are unsure.
What if I fail a borrower closing call?
Call the lender to find out if the problem is something that can be corrected in the short term to still fund the loan. If not, get a full understanding of why the call was not satisfactory.
If you cannot get the decision reversed, apply with other lenders and eliminate the issues on your next approval before the closing phase.
Conclusion
Loan closing calls for businesses are a quick, but important part of the completion process.
Do not take the call when you are in the middle of another task. Try to find out when the lender will call and what the questions will be about.
Mostly, just answer the questions accurately and thoroughly. If there is a misunderstanding or the lender does not know something important, correct and update them.
The lenders want to close the transaction. They are looking for every reasonable way to close rather than decline. If there are still issues, then discuss them with the lender. They will give you the best plan to get past any hurdles and send funds to your account.
This should result in a quick closing process and funding!
We are a leading funding source for all Small Businesses looking for the best alternatives to Banks.
Author Biography:Will Sanio, Owner of SCF Funding, dba bankstatementloan.com/, has a Bachelor of Science Degree in Business Administration with a concentration in Finance from the University of Tennessee, Knoxville.
Over 20 Years experience including 10 Years with Wells Fargo, formerly Wachovia Bank and First Atlanta Bank. Specializing in Traditional and Alternative lending.
Will Sanio: University of Tennessee Diploma – Bachelor of Science in Business Administration with concentration in Finance – Click or Tap to Enlarge Image.
Video Description: How to pass a bank verification for a business loan. Step 1: Add current months deposits. Step 2: Find out the minimum current balance required to close. Step 3: Check NSF and Overdraft limits. Step 4: Closing tips
Need to Pass Decisionlogic bank verification? If your business applied for a business loan or MCA cash advance and failed the bank verification, learn the main things the lenders look for. Correct those, go through the verification again and significantly increase your chances of passing the check and closing.
How to Pass DecisionLogic bank verification (Video Transcript: Click to Expand)
[ city street sounds ] Don’t get declined for failing a [woman says no ] bank account verification
or Decisionlogic to get a business loan or a Cash Advance. Today’s Video: How to pass a bank account verification to get money for your business.Start the process anytime by Tapping apply on the Bottom right of this screen, or tapping on the end screen of this Video, or on the Apply Button on the Webpage.
Step 1: Total Deposits:
[ woman counting bills ]Look at the total deposits into your business checking account for the current month. You want the dollar amount to be on track for the current month or not more than about 25% less than the average for the last 4 months.
Step 2: Minimum balance:
Know the minimum amount you need to have in your account at the time of the bank verification or decision logic. Often it’s a multiple of the payment, either daily, weekly, bi-weekly or monthly. Example: If your payment is $90 per day 5 days a week, then the minimum you should have in your account is about $270 for a cash advance and many other business loans. If the payment is $500 per week, then you should have at least $500 in the business account but better $1,000 or more. If the payment is $1,000 a month, then you should have at least $1,000 but better $2,000 or more in the account. If you do not have the minimum amount needed to close, [ clock ticking ]it is better to wait a few days or longer until you do, or you may be declined right before closing.
Step 2: Overdrawn:
Your account should not be overdrawn at the time you do the bank account verification or Decisionlogic, your business will be declined if you are. If you are overdrawn, you must wait until the account has a positive balance. If you’ve recently been overdrawn more than 2 or 3 days in a row, the lender may decline for that reason. If your business account was overdrawn a total of 5 days or more per month during each of the last 4 months, that may trigger a decline.
Step 3: NSF’s:
Also known as insufficient funds are charges that were rejected by your bank or debits that were paid but overdrew the account. The bank account verification looks at the NSF’s since the beginning of the month. You should not have more than about 5 or 6 average per month NSF’s during the current month. In summary, the lender will look at your current balance, and for the month to date since the beginning of the month, your total deposits, NSF’s and overdrafts and make a pass or fail decision.
Step 4: Complete:
If you pass, this is often the last step. In some cases, final verifications of the business and owners are completed. If it is the last step, [ woman giggling ]you will be funded.
If you fail the bank account verification, [angry woman growling ] try to find out from the lender what the problem was. You may be able to fix it in a few days such as low current balance or too many overdrafts or NSF’s in the current month. [ vault door opening ]The lender may be able to fund you after a week or two of good balances and cash flow. [ fire hose gushing ] If your cash flow had more problems, the lender may tell you to wait longer and do the bank account verification after that. Work closely with the lender to find out how long that is.
You need to complete a bank verification such as DecisionLogic to close a business loan. Your balance may be low or overdrawn.
What is Bank Verification, also known as DecisionLogic? Bank verification reviews your recent business cash flow to make sure your deposits are not too low and your business can handle the new business loan payment. Your business has to meet all closing stipulations or other requirements to avoid being declined right before closing. Once that is done, the Lender may do a Merchant closing call as a last step before funding.
Pass bank account verification for a business loan
STEP 1: Review Total Monthly Deposits:
VIDEO CLIP below: Total Deposits: How much is enough?: 19 Seconds –34 Seconds in Clip below.
Don’t get declined for failing a bank account verification or Decisionlogic to get a business loan or a Cash Advance. Total Deposits. Look at the total deposits into your business checking account for the current month.
You want the dollar amount to be on track for the current month or not more than about 25% less than the average for the last 4 months. If it’s much more than that your offer may be reduced or declined.
Total Deposits in the current month: How much?
STEP 2: Check the Minimum Balance Required
VIDEO CLIP below: Minimum Balance: 35 Seconds –
75 Seconds in Clip below.
TIP: Know the minimum amount you need to have in your account at the time of the bank verification or decision logic. Often it’s a multiple of the payment, either daily, weekly, bi-weekly Or monthly.
Example: If your payment is $90 per day 5 days a week, then the minimum you should have in your account is about $270 for a cash advance and many other business loans.
If the payment is $500 per week, then you should have at least $500 in the
business account but better $1,000 or more. If the payment is $1,000 a month, then you should have at least $1,000 but
Better $2,000 or more in the account.
TIP: If you do not have the minimum amount needed to close, it is better to wait few days or longer until you do, or you may be declined right before closing.
What is the minimum balance I need to pass a DecisionLogic bank account verification?
Overdrawn: VIDEO CLIP below: Overdrawn: Is Approval Dead?: 76 Seconds –
99 Seconds in Clip below.
Review recent overdrafts for the last 4 months in your account. Your account should not be overdrawn at the time you do the bank account verification or Decisionlogic, your business will be declined if you are.
TIP: If you are overdrawn, you must wait until the account has a positive balance. If you’ve recently been overdrawn more than 2 or 3 days in a row, the lender may decline for that reason.
TIP: If your business account was overdrawn a total of 5 days or
More per month during each of the last 4 months, that may trigger a decline.
Not more than about 5 overdrafts prorated over the current month.
Step 3: Review NSF’s for the last 4 months in your account.
VIDEO CLIP below: NSF’s: Insufficient Funds: 100 Seconds –
127 Seconds in Clip below. TIP: NSF’s: Also known as insufficient funds are charges that were rejected by your bank or debits that were paid but overdrew the account.
TIP: The bank account verification looks at the NSF’s since the beginning of the month. You should not have more than about 5 or 6 average per month NSF’s during the current month.
In summary, the lender will look at your current balance, and for the month to date since the beginning of the month, your total deposits, NSF’s and overdrafts and make a pass or fail decision.
NSF’s: Don’t have more than about 5 for any one month.
STEP 4: Complete
VIDEO CLIP below: Complete: Pass or Fail Bank Account Verification for Loan: 137 Seconds –
161 Seconds in Clip below. TIP: If you pass, this is often the last step. In some cases, final verifications of the business and owners are completed. If it is the last step, you will be funded.
If you fail the bank account verification, try to find out from the lender what the problem was. You may be able to fix it in a few days such as low current balance or too many overdrafts or NSF’s in the current month. The lender may be able to fund you after a week or two of good balances and cash flow.
If your cash flow had more problems, the lender may tell you to wait longer and do the bank account verification after that. Work closely with the lender to find out how long that is.
You have passed the final bank account verification process. What happens next?
The current balance must be positive. An overdrawn will result in an immediate decline.
Do not move forward with the review with less than twice the new payment in your account.
For Example:
If the new payment is $400, then you should try to have $800 to $1,200 available to help insure you will pass a Decisionlogic verification. Don’t have a low balance the day of the balance check.
2. Few or No Negative Days.
The most recent week should have no negative days.
Don’t worry too much. A negative balance day will not automatically decline you. If you had more than one overdrawn day, the risk of a reversal of the approval increases. You want a maximum of 5 total negatives in any of the last 3 months bank statements to get funding.
3. Strong Average Balances
The current month’s average daily balances should be strong. The amount depends a lot on your overall business sales and any new debt. Do keep an average daily balance of at least $1,000 if possible. Pay close attention to this if your business has had recent low sales.
Businesses with higher annual revenues must have higher average balances in their checking account.
Lenders look at this number to help them decide if the business will have the cash flow to handle expenses and all required payments. Strong average balances will help you successfully pass a decisionlogic review.
4. No New Loans
Your business should not have taken out any new loans during the last 30 days. The lender can see any new debt through the end of the previous month, but not the current month.
Did you take out a new loan in the current month? New loans taken out since the beginning of the month trigger a re-review.
Call 919-771-4177 for more info.
FAQ: How to pass a DecisionLogic Bank Verification Check:
What is a Decisionlogic check?
The lender securely reviews the current and most recent cash flow in your business checking account. They use that information as part of their final closing items to decide if the loan will close and fund.
What can I do after failing DecisionLogic?
Talk to the lender. Try to find out as much as you can about why you did not pass the account verification review. Also ask if you can wait a few days and try DecisionLogic again. Some declines are based on low balances and very recent NSF’s.
New deposits coming in during the week along with a clean account can change a decline back into an approval.
How do I pass a DecisionLogic check?
The lender may not tell you but find out as much information as you can. Tell them your current and recent balances are and ask if that will be good enough to pass and close the loan.
Conclusion
Ask the lender what they are looking for beforethe verification check.
What if I failed the verification check? Ask if you can try it again after you make substantial deposits or overcome the obstacles that caused the verification to fail. These 2 main ways should allow you to overcome the verification hurdle and get funding!
We are a leading funding source for all Small Businesses looking for the best alternatives to Banks.
Author Biography:Will Sanio, Owner of SCF Funding, dba bankstatementloan.com/, has a Bachelor of Science Degree in Business Administration with a concentration in Finance from the University of Tennessee, Knoxville.
Over 20 Years experience including 10 Years with Wells Fargo, formerly Wachovia Bank and First Atlanta Bank. Specializing in Traditional and Alternative lending.
Will Sanio: University of Tennessee Diploma – Bachelor of Science in Business Administration with concentration in Finance – Click or Tap to Enlarge Image.
There is an approval fix to reverse a business loan decline! Choose from several small business loans your business can get with revenue drops as much as 75%! Good sales this month? Provide a MTD Month to date bank statement.
FAQ Frequently asked questions on getting a business loan with low recent sales
What are slow sales considered?
When sales are less than normal for a specific time period. Lenders consider any reduction of sales of more than 25% to be a significant reduction.
How do lenders look at a major decline in sales?
Lenders want to know why were sales low and for how long. They also want to know when sales are expected to rise again and how much. Lenders also look at the percentage drop in sales. If the business can survive, pay all expenses and make a profit are then evaluated in the loan decision.
How can I get a business loan when we are operating at 50% capacity?
There are several other types of financing a business may still be able to get now even with a big drop in sales. Asset based financing is the most likely, including using receivables, equipment or real estate.
My business tax returns last year were good. Why did the lender still decline us for the recent drop in business sales?
The lender is looking closest at the condition of your business right now and in the future. Lenders see a recent big downturn without knowing when sales will go back to normal as very high risk.
Have your business sales been low in the last few months?
Many businesses have had low sales during part of the year and as a result, have trouble getting financing.
Save your time. Don’t spend weeks racking up hours and inquires applying with lenders and programs that are almost certain to decline your business. Apply with programs that will lend even with much less demand during the virus. Get funded now. Apply above.
Can we get business funding with no recent sales?
What are examples of declines in demand?:
December, January and February were much slower sales due to seasonal business.
The most recent (3) months sales are looked at. The total deposits per month are reviewed to determine trends. Questions by the lenders include:
Is there a downturn? If so, how much? What were the customer’s average daily balances? Were they overdrawn with NSF’s and overdrafts?
50% or 60% reduction in sales
Lenders look at how much of a reduction in business your business has had. How steep of a reduction, how quickly, how long and has the business started to recover? The main thing lenders will look at is the percentage sales drop. Any drop in sales over 25% is considered significant. Funding may still be possible with drops of 50% to 75%. If a business has had a major drop in month to date revenues but still needs a larger business loan, then they can add real estate to back the funding and get a much higher loan loan.
Some segments of your business were strong while others had very low sales.
Example: A retail store’s overall sales in March, April & May were down 50%. In store customers dropped to almost 0 because of the lockdown. However, because their website offers shipping and delivery of products, online sales were up 75%.
How to get a small business loan in spite low recent sales?
– Make your case. Don’t just say business was bad. Say more. Example: Explain why. You can say “We had a drop in business and purchases because of the virus. In spite of that, we are now open and sales are increasing”.
Tips and steps to explaining low recent sales to lenders to help get a business loan
In the example above, provide the information when applying. Explain how it was not the fault of your business, and you still had sales that are now increasing, both positive current trends. This shows that your business overcame obstacles and is rebounding.
Have all the following questions already answered about the slowdown in business and provide them when you apply.
Why?
How bad has it been?
What is the situation now?
How has it affected your business?
What are you doing about it?
When do you expect sales in rebound and increase?
How can you show the business will survive?
If your business has started to recover in May, consider loan options now.
We are a leading funding source for all Small Businesses looking for the best alternatives to Banks.
Author Biography:Will Sanio, Owner of SCF Funding, dba bankstatementloan.com/, has a Bachelor of Science Degree in Business Administration with a concentration in Finance from the University of Tennessee, Knoxville.
Over 20 Years experience including 10 Years with Wells Fargo, formerly Wachovia Bank and First Atlanta Bank. Specializing in Traditional and Alternative lending.
Will Sanio: University of Tennessee Diploma – Bachelor of Science in Business Administration with concentration in Finance – Click or Tap to Enlarge Image.
Hot shot truck loan: How to get up an running. With a hot shot loan a driver can get a big rig tractor on the road. Financing also includes trailers such as gooseneck trailers, car haulers and semi -trucks.
Low credit scores may qualify and some start up options are also available. Also need some repairs done? Learn about a truck repair loan today. Then read about getting loan on a trailer that you own outright, or just watch the loan on a trailer video here. Apply Below Now!
Does your Hot Shot need a repair for mechanical or body work? Then use this program for:
Transmission repair
Body Work
Engine work
Upgrades
If so, then get back on the road finally by completing the short Info form below now! Call us at Tel: 1-919-771-4177, or Question? Contact us here.
Estimated Cost: $0
Total Time: 1 Day
Supplies Needed: time available.
Tools needed: Internet connection, phone, computer
How to get a hot shot truck loan
Step 1. Make a list of the trucks needed.
Include description, manufacturer, year and model numbers. Have your information on the hot shot vehicle you need ready to go.
Have the description, manufacturer, year and model number ready for each tractor trailer truck and trailer.
Look for lenders that specialize in hot shot truck and trailer financing.
Step 2. Contact lenders that finance a hot shot truck loan.
Tip: Programs lend up to 95% maximum on qualifying trucks and trailers.
The vehicles and trailers must be free and clear. Have the information on the seller ready and whether the seller is a vendor or private party. It is easier to get approval for financing from a deal than a private party.
Ask about their approval requirements and program options.
Get credit score, down payment, time in business and closing items required.
Then decide which programs are the best match for your company based on the requirements and your own profile. Give the funder basic information on the trucks and trailers. Ask what your chances of approval are and if they can pre-qualify you.
Call the lenders that specialize in this financing
Step 3. Provide income verification to strengthen your request.
List the stronger credit owner first because you will increase your chances for approval and also get higher offers. If your credit score is low but you can make a higher downpayment, tell the lender.
TIP: Higher down payments increase the chance of approval and more favorable terms.
Step 4. Complete application for funding.
If you are approved, review terms and conditions including down payment requirements, fees and time to close. If you are declined, contact the lender to discuss available options.
Once you have matched the best program to your profile, complete the application.
Step 5. Request closing documents
Finally, complete all closing stipulations and lender closing call with the customer.
Confirm the funded amount to you as well as when and how your business will receive funds.
Look over all terms and conditions on offers. Consider early payoff options and compare terms on multiple offers. If declined, then apply with other programs. Ask how you can fix decline reasons.
FAQ Frequently asked questions on how to get hot shot financing.
How can I get set up to do Hot Shot?
To get your Hot Shot setup, provide information on the vehicle and trailer. The year, manufacturer, model number, cost and amount you have down are needed to start. An invoice or bill of sale may be required.
Do I need a down payment?
You will need at least a 5% to 10% down payment. A lower credit score requires a larger downpayment. Newer business less than a year old and up to 5 years may need 10% down.
Credit scores over 650 and 2 years in business can make a lower down payment or two payments at closing.
Can I buy my semi truck from a private party and not a dealer?
Lenders require the purchase to be from a licensed dealer in most cases. No private party sales. Proof of the current value, purchase history, lien history and current condition is reviewed.
Need other options? We have several unsecured options that offer working capital on the cash flow of the business.
Check here for other small business loans without vehicles.
Haven’t even set up or registered your hot shot business yet? Visit the SBA for information on Business plans, projections and more!
We are a leading funding source for all Small Businesses looking for Hot Shot Financing.
Author Biography:Will Sanio, Owner of SCF Funding, dba bankstatementloan.com/, has a Bachelor of Science Degree in Business Administration with a concentration in Finance from the University of Tennessee, Knoxville.
Over 20 Years experience including 10 Years with Wells Fargo, formerly Wachovia Bank and First Atlanta Bank in Atlanta, GA. Specializing in Traditional and Alternative lending.
Will Sanio: University of Tennessee Diploma – Bachelor of Science in Business Administration with concentration in Finance – Click or Tap to Enlarge Image.
Missing just 1 mca payment should not cause your business problems. But what if you have more missed mca payments? What can you do to avoid problems? In this post we will talk about 4 initial steps further below to take if you cannot pay cash advance payments. Author Biography: Will Sanio
Also consider if you can instead get out of your merchant cash advances now. Payoffs may be possible through a longer term loan that are asset based. Also read what to do if you have been declined more funding due to missed mca payments.
If you are not going to be able to get current, here are options to get out of an mca cash advance, or watch the get out of mca video.
Apply below to get started now on safe ways to fix this problem before lenders take action against your business.
You have missed mca cash advance payments. What should you do now? Several immediate solutions to save your business.
What can you do after missed mca payments?
1. Communicate with the lenders immediately.
Contact the cash advance companies right away. Do not think the problem will work itself out or that you will probably catch up in a couple of days. Communication is key. It is better if you contact them before you miss more payments. However, if you already missed a payment then contact the advance companies that day or the next day at the latest. Maybe the missed payments are not your fault.
2. Tell the cash advance companies what has happened and why.
But how do I explain this to the mca companies?
It depends on your situation. What is your cash flow situation right now? Can you begin making the payments again right away? Figure out what you can pay, when, and how often. Let them know what is happening with your business. If you have a good reason for missing payments, tell them that reason. If you can back it up with documentation, all the better. Being proactive and communicating will be your best option at the beginning. If the lender has no coj confession of judgement, you will still want to work out a payment plan to avoid a default.
3. Can you start making payments again? If so, make an agreement with the advance companies to begin.
Call the cash advance companies even when you can start making payments immediately. They still want to know why you missed mca payments. That will help your case. You may end up missing another payment later you did not expect to miss. It is better if you are already on record as being in contact with the lender.
4. Payment plans after delinquent mca payments
Payment plans are best when the business can neither keep making the daily payments or paying off the advance. The cash advance company may be very willing to set up a payment plan. They will be able to get payments in full and the merchant will make the total sum of payments. It is up to the lender to do this. If your business wants to go this route then be ready to explain to the cash advance company why a payment plan will work for both of you.
Other Considerations on handling your loan if it is past due
Missing consecutive payments
If you expect to miss more payments consecutively, then you want to decide if you can payoff the advances first. Paying off advances with another loan is better than continuing to miss payments. You can choose from unsecured options such as bank statement loans and a large business loan if you need a lot.
Bouncing more mca payments.
If you know you cannot sustain your payments then paying off the advance may be the best option. This is because missed payments will make it much more difficult for your business to borrow in the future and make this your worst option. Many merchants would rather not take out a new loan. However, if you are approved for a new loan that can payoff loans you cannot pay, you should strongly consider doing so. Many businesses cannot even get approved for a payoff and don’t have that choice.
Payoffs
Paying off your merchant cash advances may be the best option. But when is it better to payoff and when is it better not to? It is usually better to payoff the cash advances when you know you cannot keep paying the current payments. Paying the advance off with another loan works very well if you have less than 3 months or so left on the exiting advances. Taking out a loan to payoff a low balance is still much better than missing mca payments and defaulting. You can avoid damaged credit, court action and trouble getting loans in the future.
When does it make sense to payoff one loan with another?
Example: A merchant has an advance with a daily payment of $100 and has a remaining balance of $3,000. He has 30 payments left but he cannot keep making those last payments and will go past due and default. Before going past due the merchant is offered another loan for 6 months to payoff the $3,000. The new daily payment will be about $35 per day for 120 days. The borrower can afford this easily. Problem solved. The business now has a payment they can afford and does not have to worry about paying the advance on time.
Extending the term
Extending the term and lowering the payments is usually similar to a payment plan. Sometimes it is more informal and the cash advance company will just let the borrower continue making payments past the term without a formal contract. At other times a formal new contract will be written that replaces the old contract. Expect the mca company to charge penalties, fees and more interest as part of the new contract.
Lowering Payments
Getting your mca cash advance company to lower the payments works best when your business just needs short term cash flow relief for a week or two. Your business may just have a brief cash flow problem it needs to work around. Be aware that mca companies are not receptive to businesses calling in multiple times and asking to lower payments for a while. It is supposed to be a rare request rather than one of convenience. Some lenders may only do this once during the term of the contract. If you think your business will need to ask for lowered payments several times then find a different option.
Pausing payments
A pause for one to three weeks may be all a business needs. As with lowered payments, your business has to be sure it will be able to restart and continue payments when the payment pause is over. You should not pause payments if you need a longer term permanent solution. Sometimes businesses will ask to pausing payments when they know they will have a problem again when the regular payments start back up. If this is you, then you should put all your efforts into solving the problem permanently on the front end.
Settlements after significant missed mca payments
A settlement directly with the mca cash advance company can be considered when other options will not work. Settlements usually happen after a merchant has failed with a payment plan or lowered payments and not able to handle regular payments anymore. It is a step before a default but still considered better than a default situation.
Beware of 3rd party settlement companies that tell you to put a stop payment on a merchant cash advance company.
We believe this is the worst choice in almost all cases.
Many settlement companies will tell you to do this to buy time for them to negotiate with the mca cash advance companies on your behalf. However, they still want you to pay them a lot of money upfront before they start negotiations for you. We believe this is a very bad idea for your business for several reasons.
Let’s break down why:
Your advance will be declared in default immediately when you put a stop payment on them. You certainly will not want to even consider this if you have not read your MCA contract in detail. The contract will tell you all the actions the advance companies can take when you put a stop payment on their daily Payments. Putting a stop payment on a merchant cash advance will definitely result in the strongest response against you by the mca companies. If they have a coj, then they will file it against you almost immediately. The settlement companies telling you to do this do not have to deal with the problems you will have! Do not do this!
Beware of companies that tell you to close your business checking account
An intentional default happens when a borrower takes an intentional action not to make good on the contract. This is almost always combined with little or no communication with the cash advance company. Lenders think of the borrower as trying to evade an obligation and contractual promise to pay. Worse, their contract usually includes specific language that talks about what actions and remedies they can take if the borrower closes their account. We believe this is a bad option for almost all borrowers. Contact us above for much better options!
Defaults
Defaults are the least desirable option. The lender has declared that they are taking a loss on the loan. The worst adverse action has already been taken against the merchant, which may include filing a coj confession of judgement. All efforts should be taken to avoid a default on a cash advance.
If the mca company has a coj confession of judgement, they can have it enforced through a court in one or two days. Sometimes they can have it affirmed by a court the same day.
What can the cash advance company do then?
They can have the sheriff contact any bank they wish and demand that the bank verify if your business has a checking account there. If so, the cash advance company can debit all the funds out of your account.
In conclusion
The tips above can guide you on how to handle specific situations with cash advance payments. If you continue to struggle with debt long term the National Foundation for Credit Counseling, NFCC can help with budgeting and strategic long term debt planning.
FAQ Frequently asked questions on missed mca payments.
My business sales were down recently and I cannot pay my daily cash advance payments. What are my options?
Do not stop communicating with your mca merchant cash advance companies. Consider any ongoing relief programs they can offer. Look at asset based alternative programs to payoff your advances in the short and medium term if you have collateral.
I missed an mca payment. What can the merchant cash advance company do?
If you have only missed one or two payments then the mca companies are very unlikely to take action besides trying to contact you. If you have not talked with them yet and you miss more consecutive payments, then contact them asap.
My cash advance company has threatened to take action against me for missing payments. What can I do?
If your mca company has threatened to take legal action against you it means they probably have not done so yet. You still may have a chance for a good result. Look at what you can pay and consider offering to make the maximum payment you can.
If they refuse then put your offer in writing and email it to them certified. This may work strongly in your favor if there is future court action against you. It shows that you communicated with the cash advance companies and tried to work out a solution to fulfill your obligation to them with your worsened financial situation and they refused to work with you. Whatever your outcome ends up being, this action should put you in the best possible position later.
I don’t want to talk to the mca companies. They are very aggressive, rude and threatening. Why should I talk to them?
Talk with them because if you don’t they will take action against you. They may be able to put a freeze on your business checking account or block your account. You will not be able to use your business checking account if they do that. That will be the worst result for you and your business. Contact them to see if you can come up with a solution.
My cash advance company said they can lower or pause the payments. Which one is best?
Pausing the problems is best when your business has a short term cash flow problem for a few weeks and will be able to begin making the full daily payments again after that. Lowering the payments will be best if your business is going to keep having trouble making the regular payments later. If you cannot make the regular mca payments later then it is better to get the payments lowered long term until you have paid off the contract.
I have some delinquent mca payments right now. Should I payoff the mca payments or try to work out a compromise?
Payoff the cash advances if you are able through another loan when you cannot keep making the daily payments and will default. Work out a compromise with the lender when you have the cash flow to make a lower payment. Ask them not to declare you a default account.
Is it good for a settlement company to tell me to close my business checking account so that the mca companies cannot debit my daily payment?.
You should not close your business checking account to stop daily mca debits except in some rare cases. Closing your account automatically causes you to be in default. The mca company can also declare the act of closing your business checking account to stop the daily debit as an intentional default.
I missed some daily mca payments and the advance company is telling me I am in default. Can they declare me in default?
If the contract says missing a certain number of payments puts your account in default and you missed that number of payments then they can declare you in default. Negotiating is usually better even after you have been declared in default on a cash advance. Communicating with the advance company will usually get the best possible outcome for your business.
We are a leading funding source for all Small Businesses looking for the best alternatives to Banks.
Author Biography:Will Sanio, Owner of SCF Funding, dba bankstatementloan.com/, has a Bachelor of Science Degree in Business Administration with a concentration in Finance from the University of Tennessee, Knoxville.
Over 20 Years experience including 10 Years with Wells Fargo, formerly Wachovia Bank and First Atlanta Bank. Specializing in Traditional and Alternative lending.
Will Sanio: University of Tennessee Diploma – Bachelor of Science in Business Administration with concentration in Finance – Click or Tap to Enlarge Image.
