Merchant cash advance information includes getting low rate cash advances, the best renewal terms, and how to get out of a merchant cash advance if they are causing your small business cash flow problems. Excellent options are available for business owners with a felony or misdemeanor in their background.
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.
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.
How can I get out my mca advances without defaulting?
You can either pay them all off through a consolidation, or refinance and extend the term several more months. You may even qualify to extend the term for up to 5 years with credit scores over 600 and strong sales.
How much lower can you get my payment if you pay them off?
Your payment is reduced between 35% and 75%. The fewer number of months you have left on your advances now, the longer your refinance can be extended on a payoff.
Do you negotiate with my current advance companies?
It is not necessary to negotiate with your current mca companies. They are fully paid off and satisfied so there isn’t any need to talk to them. There will not be any other outstanding debt with them.
Can I get my advances paid off if I am behind on payments?
Asset based programs can be used to pay off delinquent mca accounts. Some unsecured programs may qualify if you are not severely delinquent. If you have already defaulted, then the asset
based route will work best to clear out your balances.
Does the example below look like your business?:
Your company has three mca positions:
# 1: Balance of $20,000 at $333 per day.
Merchant has 60 debit days left or approximately 3 months.
#2: Balance of $10,000 at $166 per day.
Merchant has 60 days left or 3 months.
#3: Balance of $5,000 at $83 perday.
Merchant has 60 days left which equals 3 months.
If your business has several mca’s from stacking, complete the secure 30 second application below for a rescue today! Get payments you can afford that will not hurt your business, or credit or reputation.
Choose from several options to reduce your daily and weekly cash flow for short term debt. Longer term options are also available, such as weekly and monthly payments.
Add up and know your total daily, weekly and monthly payments on the advances as well as how much longer you have to pay on them. Also get your total payoff balances. Know your approximate credit score.
Search for lenders that either payoff or restructure your debt as earlier options. Funding programs that recommend you close your business checking account or negotiate a settlement hurt you the most and should be your last possible options.
Choose a program that best matches your company profile for your amount of debt, ability to pay and urgency for a fast loan on any new program that allows you to reduce the number of short term loans. Owners with less than 100% ownership percentage in their business need agreement from the other owners.
Talk to a representative of the program. Tell them about your situation and ask them about their underwriting criteria. Try to assess what your chances of approval or being declined are for each program. Once you find the best matching program, then apply.
If approved, review the terms of the approval. If you are satisfied, close the transaction.
Receive funds into your main account and begin repayment with improved cash flow.
We have excellent programs with a high approval rate to fix your multiple mca multiple positions problem. Almost all businesses can improve their cash flow. Take actions before you have missed mca payments. Apply above or call us at Tel: 919-771-4177.
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: Get an MCA Merchant Cash Advance After a Default; 00:37 Default Programs for Qualifying Companies; 00:44 Include Payoff or Settlement Letters; 01:04 How long since mca default; 01:11 How many mca defaults I had; 01:25 What if I Did not repay MCA Defaults
How to get an MCA Merchant Cash Advance after a Default
Some businesses that have defaulted on 1 + mca cash advances in the past now understand the amounts and daily payments they can handle, and make. These programs are targeted for:
How to get another Cash Advance after not paying a previous one.
Step 1: Research companies online that offer merchant cash advances to businesses that have a previous default on an mca cash advance. Closely review restrictions for terms and conditions of approval.
Step 2: TIP – Repayment of a previously defaulted merchant cash advance as well as the amount of time since the default may affect your ability to be approved under different programs. Ask if there is a minimum time requirement since the cash advance default. Know the month and year your business first officially defaulted and the amount of the default. Default reporting drags on time wise in business and personal credit reports and makes it look like the default was much more recent than the original date the merchant cash advance company declared a default. Any payments you made on the default often do not appear on the business and personal credit reports a lender looks at and you will not get credit for any payments made. Provide documentation of the payments made.
Step 3: Select the programs that your business will most likely qualify for.
Decide on the programs that your business will most likely get an offer from.
Step 4: Make contact with these lenders that fund with previous defaults. Try to verify how likely your business is to meeting the funding program conditions and requirements.
Contact mca default lenders. Apply here to begin.
Step 5: Submit an application for funding. Provide all documentation you have that improves your chance for an approval. Provide documentation that proves the time since the default and if any payments were made.
Apply and provide any documentation that show how long it has been since your business originally defaulted on the mca merchant cash advance.
Step 6: If approved, review terms and conditions. Rates and terms will not be as favorable for some time on your advances after defaulting.
FAQ Frequently asked Questions on getting an mca merchant cash advance after defaulting
Can I get a merchant cash advance after I defaulted on one?
About 6 months to 1 year after a default your business can be considered for financing, including a cash advance. Approvals and amounts depend on how well your business has recovered, it’s ability to repay and if any of the default was paid.
What if I did not repay any of the defaulted cash advance?
It is easier to get another cash advance if you repaid or settled the old defaulted cash advance. New lenders want to see your business made an effort to repay what it could or reach a settlement on the debt.
Does it matter if I defaulted on more than 1 advance?
You may still be able to qualify even if you defaulted on more than 1 previous advance. Approval depends a lot on whether you repaid any of the debt, how many you had, how long it has been.
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.
Get an MCA Cash Advance After a Default (Video Transcript: Click to Expand)
Transcript
00:42 Borrow after Default Business Profile 00:48 How Payoff or Settlement Letters Help 01:07 Does time since my loan default matter? 01:15 What if I defaulted on more than 1 MCA 01:29 What if I did not repay my MCA?
You can get an MCA cash advance after a default? Yes, get an MCA Cash advance after a default. Get money if your business defaulted on an MCA and get started
Again. Start building a relationship as soon as possible, and gain access to the funding
You need now, and in the future. Whenever you need it. Call us at 919-771-4177. Don’t
Wait until you need a loan for your business and can’t get it. Apply Now. You’ll find what you need here. To apply, click on the apply button at the bottom right of this screen, or on the endscreen of this video, or call us at 919-771-4177 or go to bankstatementloan.com/. Complete the application, send in the most recent 4 months checking account statements.These programs are for companies that have had defaulted accounts, payments, and also missed and delinquent payments. Make your request stronger and include any payoff or settlement letters if you have them. Are you making payments on previous
Advances now? Then add any documentation or information on your payments. Approvals, amounts and terms depend on how well your business has recovered, if you can repay now and also if any of the old debt was repaid.
Frequently asked questions:Do you look at how long it has been since my cash advance default?
There are no absolute minimum time requirements. The older, the better.Does it matter if I defaulted on more than 1 advance?
You may also be able to qualify if you defaulted on more than 1 previous advance. Approval terms consider whether you repaid any of the debt, settled, and how many MCA’s you had.
What if I did not repay any of the defaulted cash advance?
It is easier to get a new cash advance offer or stronger offer if you repaid or settled the old defaulted cash advance to show your business repaid what it could or reached a settlement on the debt. Click on the apply button at the bottom right of this screen, or on the endscreen of this video, or call us at 919-771-4177 or go to bankstatementloan.com/.
Do you need to show proof of your business address and business location? In this article we will review specific documents that prove this. Learn which documents you can use, and how to get them.
6 Examples of Proof of Address you can use – Further below.
A company owner applies for a small business loan such as a bank statement loan and is approved.
Closing requirements require proof the business exists. For working capital, apply below now.
Accepted Documents
The following which will typically be accepted to confirm a company’s physical location.
1. Utility bills.
2. Commercial rental lease agreement.
3. Mortgage statement. If the real estate was purchased through a commercial real estate loan, then a current mortgage statement can be provided.
4. A current business license. Accepted for Addresses that have stayed the same since inception and when the original license was obtained. A sole proprietor can provide a license or a schedule C.
5. Articles of Incorporation. A partnership agreement that has the same address on it may also be accepted.
6. Business tax return. Often accepted if the address matches the listing on the loan application.
7. Pictures – Pictures can help, especially if there is a cross street or if your business is in a shopping center.
A copy of a utility bill, lease, mortgage statement, landlord verification, business license or articles of incorporation should work. See a complete list on this page.
What can I do if my proof is not accepted?
Ask for all the options they will accept as proof of a commercial location. They may accept more than what they list. Pictures and videos of your business may be accepted. A site inspection can work as a last resort.
Why is a P.O. Box not acceptable?
P.O. Boxes are not usually accepted. Addresses that do not have a building or structure, vacant lots and raw land are not accepted as proof of the address and location.
What is a site inspection of my business?
A site inspection is when someone comes in person to inspect your location. This is usually done for loans, vendor relationships and when large contracts are signed between companies. The goal is to confirm the company’s address and that the business is open and operating.
How to prove your company address and location
Step 1: When making any request or application in the name of your company, review in advance what may be required to prove your location.
Step 2: Tip: Gather information you have on your company address in advance. Have the items available or make a list to discuss.
Step 3: Apply with companies that will accept the proof of business address that you have, or can get.
Narrow down your list of lenders you apply with to those that accept the proof of business location you have.
Step 4: Make contact with funding programs and confirm your business address information will be enough.
Try to confirm ahead of time that the business address information will be satisfactory.
Step 5: Submit a request or application.
When satisfied you will meet the requirements, apply.
Step 6: If you receive an offer, first review the terms including the items required to prove the company location and address. If ready to complete an offer, submit the required items. Get final questions answered before closing. Finalize the transaction.
If you do not have the types of documentation for proof of address, contact us below. We can guide you, and give you tips on how you can get proof of your business location.
You don’t have any proof of business location and don’t know what to do and how to get it?
Sometimes the owner cannot prove their address which may be required to close a loan.
Are there other ways to verify it? What is the lender asking for? There are other options in addition to the ones listed above.
If you don’t have proof now, review your options and fixes below:
How you can fix the following problem:
I can’t prove my business location.
Get an updated business license showing that address. Your city or county can reprint or resend a copy of your permit to operate. If it shows a previous and outdated location, then submit a correction before requesting a reprint.
Review the address at the secretary of state to see the current information. If the current information is wrong, contact the secretary of state and update the articles of incorporation.
Remember: Evidence of your company’s current address and will be required for funding. This prevents mail correspondences from being incorrectly sent and also helps prevent owners from making changes without the knowledge of the other owners.
Examples of what generally will not work for proof of address:
Virtual office
P.O. Box: post office box
Vacant lot
Raw land
Any location that does not have a building or structure on it
An out of state address. This happens when the business is located in one state but was originally located in another.
When the business address is in one state and the owners personal home is in another. This is an absentee or out of state owner.
There are exceptions to some out of state owner situations. If the business address is on the border of one state and the owner lives within a reasonable distance in a neighboring state.
An owner that lives less than 50 miles from their physical operations is usually acceptable. Examples is a company that is listed in Kansas City, KS, and the owner lives in Missouri.
Other examples are a company listed in Chicago, IL, and the owner’s home address is in northwest Indiana, less than 50 miles away.
Fast Funding takes care different types of taxes: 1. US Federal 2. State 3. Back Taxes & OIC Offer In Compromise 4. Payoff Liens 5. Settlements 6. Payroll
The money can also be used to pay quarterly payments , OIC offer in compromise settlements, tax extension payments and income tax settlements. Check out other small business loans you can use to pay business taxes, such as a loan against equipment.
How to get money to pay IRS and State business taxes:
Identify business funding programs that offer money to pay IRS business back taxes, open tax liens and OIC, offer in compromise, and settlements.
Select programs are available to satisfy the need to pay your specific tax debt. Liens of all amounts are usually considered by these specialty programs. Some may require additional collateral such as real estate, listed stock, or other collateral that covers the amount of the upaid federal debt. Open tax liens over $10,000 are more difficult to get money for without collateral.
After evaluating, choose the program that is most likely to provide the capital needed for your business to pay.
Choose the program to pay business tax debt
Contact the lender. Check features, benefits and program requirements. Ask about restrictions, including what is needed for approval and closing.
Check features, benefits and program requirements
When you determine your business meets the requirements, apply for funding.
Do you meet the guidelines? Apply for a loan to pay business taxes.
For any offers made, review the full terms and determine if your business can make the payments. If so, provide the items needed by the funder to close the transaction.
FAQ Frequently asked questions on how to get money to pay irs business taxes.
What are my chances to qualify for a loan to pay off my business taxes?
If you have sales then you have an outstanding chance to get approved. Unsecured loans are available with terms between 2 to 18 months. Strong credit may allow you to get up to 60 months based on the sales or collateral you have. Even more loan options include asset based against equipment or real estate.
How long does it take to get funding?
Processing time from application to funding on unsecured approvals is 2-3 business days. This depends on how many tax liens you have and if they are being paid off at closing.
Do I have to be in a payment plan to get the loan?
Being in a payment plan is preferred but not required. If you have a payment plan or OIC offer in compromise, then provide documentation to increase your approval amount.
What if I have an open tax lien?
We have programs for your business to payoff and settle an open tax lien. Approval depends on the amount of the lien and business sales. Other factors include time in business and assets.
Can I get approved if the IRS has already filed a lien against me?
A lien on you or your credit that is already in place is usually not the deciding factor. You still have an excellent opportunity to get money for your business. It is the cash flow of the business and being able to show documentation on the lien that is most critical.
Do I payoff the IRS or state tax lien myself?
You can be funded into your business checking account and payoff the IRS or state tax lien yourself. A requirement for closing your business loan may be for the lien to be paid off by the lender at closing.
Do I need collateral for a business loan to pay IRS taxes?
Having collateral is not a requirement. For larger tax liens the borrower may have to use real estate in order to payoff the full amount.
If I filed an extension can I still get a loan to pay business taxes?
You can still get a loan to pay even if you filed an extension and paid estimated taxes. Provide a copy of your completed IRS Extension form 4868 when you apply.
In conclusion, get money to pay IRS business back taxes, liens and OIC, offer in compromise, and settlements.
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.
Used car dealer loans are difficult to get. Traditional lenders such as banks are not a good option. Get money for your pre-owned vehicle lot, specialty car dealer business or any car lot
Step 1: Research companies that specialize in used car dealer loans. Decide which programs meet your dealership’s needs for the amount, credit, time since opening and what you need the money for.
Search online for used car dealer lenders
Prepare your documents
Step 2: Tip: Prep your information a few days before you need money. Amounts over $50,000 need more time to be approved and funded. Lots selling more than $15,000 per month have a better chance of getting an offer.
Get company information, bank statements and business licenses together days before they are needed.
Look at the cash flow in your bank statements. Explain low sales months, overdrafts, nsf’s and low balance periods upfront when you first apply. This can help get approvals, better offers and help avoid declines.
Settle on Top Companies
Step 3: Contact your preferred companies and ask about their approval criteria.
Tip: Ask if you can be prequalified. Some funders can either prequalify through an online application or a representative by calling in.
Contact the lender. What are their requirements? What are the most common reasons for denial?
Complete your application
Step 4: Apply with the programs the most aggressively solicit used car dealers while matching your needs. Complete an application for capital and provide all supporting documentation needed.
Apply with the best matching program.
Review Approvals
Step 5: After approval, review the terms and closing requirements. Get all of your closing documentation together and submit to complete the transaction.
If the closing terms are satisfactory, provide all remaining documents and close the transaction to receive funding.
The lender will usually make a final merchant call to you. They will verify that the owner completed the closing documents and is ready to start the transaction. Confirm this and receive the money into your account.
Loans to used car dealers are considered restricted loans by almost all lenders. We have programs for below 500 credit scores.
F.A.Q. Frequently asked questions
Can our pre-owned vehicle lot get fast funding the same day or next day?
Same day funding is possible for applications received by noon. After mid day, funding on approvals and closings is possible the next day.
How long does our used car lot have to be in business?
At least 3 months is needed. The most recent three months business checking account statements are then submitted to pre-qualify.
What types of used car dealer loans are available and for how long?
Programs are for dealers that specialize in buy here pay here, new and used cars, specialty, luxury, exotic, and short time since opening.
There is an option for small lots with low inventory of less than 10 cars. The longest term option is up to 10 years and available in most states. Other programs are short term bridge loans from 3 to 10 months.
How much does bad credit matter?
Low credit scores and bad credit will rarely be declined. Scores can be as low as 400. Cash flow and strong account balances are the most important approval requirements.
What are the rates?
Rates start in the low teens and depend mainly on cash flow, time in business and credit.
Can we use this financing to buy more cars for inventory?
The working capital can be used to buy cars at auction or anywhere your dealership buys.
It can also be used to buy lot space, repairs and improvements.
We are a leading funding source for all Companies 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.
Use your business cash flow or assets to get a large business loan. How to search and contact lenders and learn how to get approved. Get up to $2,000,000 through these programs. Fast and easy process with 1 to 3 day closings may be available.
Very little documentation and financials in most cases. Business loans up to 2,000,000 available with either real estate or unsecured with strong monthly cash flow.
Search and contact lenders that offer a big business loan and review their approval criteria
If your business generates more than $50,000 per month in gross revenue, or your personal credit score is over 600, then your business has a good chance to be approved.
How to get a large business loan: How to steps, direction, and tips:
How to get a large business loan fast and easy
Estimated Cost: $0
Total Time: 1 Day<
Supplies Needed: Financia statements if available, Business bank statements, and Tax returns for requests over $100,000.
Time available. Tools needed: Internet connection, phone, computer
Step 1: Preparation
Research companies that offer big business loans. Search for programs that best match your business for the amount requested, your annual sales, credit, time in business and use of funds by your business.
Search for companies that offer specific programs that you are looking for.
Step 2: Have your business financial information ready to go.
Tip: Start the process a few weeks before needing business funding. Larger funding amounts over $100,000 often require more time for an approval. If your business generates more than $50,000 per mont hin gross revenue and your personal credit score is over 700, then your business has a better chance to be approved.
Review your business bank statements and financial information before providing. If there are any problems then write an explanation for those problems before applying. This can include slower business periods during the year, low net income on financial statements or any other reason.
Start weeks before you need the loan if possible. You may need that time to get documentation together.
Step 3: Settle on the top 2 or 3 programs that best matches your business for your profile and the reason you want the loan.
Contact qualifying companies and ask about their qualifying criteria
Try to find out if your business has a good chance to be approved. Some lenders may be able to prequalify your business over the phone.
Call and talk with a representative of the most qualifying programs. Tell them your company’s main characteristics such as amount requested, time in business, credit and ask if you will qualify.
Step 4: Submit an application
Go with the most likely program you have determined can get your business a big business loan based on your review and any conversations you had with the lender. Complete an application for funding and provide the supporting documentation requested to show business revenues such as bank statements or tax returns.
Is the program the best fit? Then apply!
Step 5: Review approval offers
Once approved, review all details of closing stipulations such as terms and conditions. Make sure you can provide required items. Complete transaction and receive funding.
Was your business declined? Contact the lender and try to find out why you were declined. Can you do anything to get the decision reversed? If not, then go back to other lenders you looked at during your initial search. Ask the other lenders if the reason you were declined will be an issue for them. If not, then consider applying with them.
Review approval terms. If you are satisfied, provide closing stipulations and get funding into your business checking account.
FAQ Frequently asked questions.
How can we qualify for a large business loan?
Time in business of 6 months and revenues over $25,000 per month are needed at a minimum. Higher credit scores over 600 will help get approvals and higher offers. Higher average bank balances also help.
Can we get a larger business loan with bad credit?
Your business can still get higher amounts with bad credit. Strong sales and time in business can overcome a lower credit score.
Can our start up get a bigger business loan?
Your start up will need about 6 months in business, strong sales and credit scores over 575 to have a chance at a higher approval amount.
Do we have to have collateral?
Your business does not need collateral to get a high offer. Strong sales are often enough. Time in business over 6 months and credit of 600 or higher can increase offers significantly.
Does the process take a lot longer?
The process often takes about the same amount of time. More documentation may be requested for amounts over $10000 and can take longer.
For other financing options, please review other alternate financing programs that may better match your business needs, below:
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.
Is closing your business checking account to stop an mca cash advance a good idea?
Shutting down your current account and opening a new business checking account is a bad idea and the worst way to get out of a merchant cash advance. Consider much better alternatives to stop an mca such as Payoff and Consolidation options, other unsecured cash flow options and asset based. Apply below.
Lenders may consider closing an account an intentional default.
Closing your checking account from which the payments are debited may be in violation of your contract. Read your Contract.
Get started on safer, better solutions. Apply Now, below:
Call Tel: 1-919-771-4177.
FAQ frequently asked questions on closing a business checking account to stop mca cash advance payments
Can I close my business checking account to stop a cash advance daily debit?
Closing your account is not allowed and may be considered an intentional default. Call the cash advance lender and try to work out a solution. Payoff or consolidation options are available if you are not offered a repayment plan you can pay.
What will they do if I close my account without telling them?
It can be called an intentional default and you can be sued. They are much more likely to take legal action against you and your business through a lawsuit filed in state or county court. There could be accusations of fraud if accusations of an intentional fraud are made.
What are better options?
Working with the cash advance lender to negotiate a lower payment is almost always better than closing the account. That should only be seen as a possible last option under extreme circumstances. In many cases, the bank has called the loan due and you must come to a negotiated solution with the lender to avoid a default.
The following is what many debt settlement programs tell customers to do.
Sign a contract which allow them to represent your firm in communications with lenders and mca merchant cash advance companies after missed mca payments.
Pay their company to start the process.
Close your business checking account per their instructions or advice.
Allow them to represent you in negotiations.
There are several problems and possible severe consequences to closing your business checking account to stop paying cash advances or loans and signing a debt settlement contract .
The lender can also consider this an intentional default or fraud.
The lender or mca company can file a certificate of judgement and may also be able to debit funds in other accounts you may have at the same bank or other banks
You may not be able to talk to the lenders or cash advance companies directly any more even if you want to. Language in the contract may not allow you to talk contact the funder directly
You may not have influence or say in the final agreement.
The contract you sign take power and decisions out of your hands and puts much of it in the hands of a 3rd party.
Other options to closing your business checking account
Contact the lenders directly and try to discuss your financial situation and reach an agreement with the lenders yourself.
Payoff the merchant cash advances with other loans if the balances are low enough
Discuss your financial situation with a business attorney
Filing bankruptcy
The advantage of some of these options in general is that they either show you are sincerely trying to work with your lenders to settle your debt, are forming a coherent strategy to do so, or have officially determined that you cannot pay. These also have advantages over closing your account.
Have you been told to close your business checking account to get out of an mca merchant cash advance? Don’t do it.
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.
00:11 Calculate if you can afford a third Position MCA
00:47 Total Monthly Deposits: increasing or decreasing
00:58 Average Daily Balance: Minimum amount needed
01:08 Overdrafts or NSF’s: How many can I have?
01:28 Approval and Closing: What do I need?
01:44 How to avoid repayment problems: Multiple MCA; Video Description: How to get a third MCA cash advance:
Step 1: Calculate if you can afford a third daily debit.
Step 2: Matching with a Lender.
Step 3: Approval Offers.
Step 4: Closing. Get the highest offers on 3rd positions.
Can I afford a Third MCA Cash Advance? How do I calculate affordability? Watch above or go to the Video Watch page here
Get a third position mca!
Supply: Last 3 months business bank statements
Tool: Desktop, laptop, tablet or phone
STEP 1: Check if you can afford another Daily ACH.
How to get a third position MCA Cash Advance. Start the process anytime by Tapping apply on the Bottom right of this Screen, or Tapping on the End screen, or on the Apply Button on the Webpage.
Make sure you can afford another MCA. The Lender will be checking your profile closely.
Let’s review an Example: Multiply a $10,000 Offer amount times a 1.35 Rate Factor. There are 21 Payment Days most Months. If your offer Amount is for 8 Months, that’s 21 times 8 = 168 Days. Take the $13,500 Total Repay and divide it by 168 Days. That’s $80.36 Per day for every $10,000.
How to calculate the cost of a third mca cash advance.
Review your Last 3 Months Business Bank Statements, or 4 Months in States that require 4 Months like California. Your total Monthly Deposits should have increased or stayed the same.
Total Monthly Deposits that have been increasing in the last 3 months may bring a higher offer amount. Decreasing may bring a lower offer amount.
CLIP below: Check Total Monthly Deposits: 52 Seconds – 63 Seconds in Clip below.
Average Daily Balance:That is the average balance per day for the month.
TIP:
You want your Average Daily Balance to be at least $750, but better $1000 or higher.
What is the Average Daily Balance in your account?
CLIP below: Review Average Daily Balance 63 Seconds – 74 Seconds in Clip below.
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.
NSF’s and Overdrafts: How many are too many for a third MCA?
CLIP below: Overdrafts or NSF’s 73 Seconds – 87 Seconds in Clip below.
STEP 2: Match with a Lender
Match with a lender that fits your business type.
TIP:
Talk to a Representative first, that often avoids unnecessary declines.
Match with a lender that makes aggressive third mca positions cash advance mca’s.
STEP 3: Apply.
If approved, request the closing docs.
Apply for a third mca position cash advance
STEP 4: Close
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.
Third MCA Approval then Closing: What are the next steps?
CLIP below: Approval and Closing 94 Seconds – 111 Seconds in Clip below.
TIP:
If you have repayment problems with 3 MCA’s, communicate with the Lenders immediately and consistently[ desert wind blowing ] to protect your business’ ability to borrow again in the future [ wind continues ]
What if you have repayment problems with 3 Advances?
CLIP below: Repayment problems with 3 Advances 110 Seconds – 119 Seconds in Clip below.
In minutes and seconds.
00:11 Calculate if you can afford a third daily payment
00:47 Total Monthly Deposits: increasing or decreasing
00:58 Average Daily Balance: Minimum amount needed
01:08 Overdrafts or NSF’s: How many can I have?
01:28 Approval and Closing: What do I need?
01:44 How to avoid repayment problems: Multiple Advances;
Today’s Video, how to get a 3rd position MCA 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.
Make sure you can afford a third daily payment, The Lender will be checking your profile closely. [ woman giggling ].
Let’s review an example. Multiply a $10,000 offer amount times a 1.35 rate factor. There are 21 payment days most months. If your Offer is for 8 Months, that’s 21 times 8 = 168 payment days.
Take the $13,500 total repay and divide it by 168 payment days.
That’s $80.36 Per payment day for every $10,000.
Review your last 3 months business bank statements, or 4 Months in States that require 4 Months like California. [ ocean surf sound ]
Your total monthly deposits should have increased or stayed the same. Total monthly deposits that have been increasing in the last 3 months may bring a higher offer amount. Decreasing may bring a lower offer amount.
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.
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.
Match with a Lender that fits your business type. Talk to a representative first, that often avoids 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.
If you have repayment problems with 3 advances, communicate with the lenders immediately and consistently to protect your business’ ability to borrow again in the future.
Apply below now to get your offer and cash quickly!
Call 919-771-4177 for more info.
F.A.Q.’s, Frequently asked questions
How much can we get on a 3rd position MCA?
You will get the highest offer that your business budget can handle which will be reviewed through the bank statements. If the balance on one of your other advances is low enough, it can be paid off to get an ever higher offer.
What is the longest term we can get?
Payments and terms on a 3rd funding can go up to 1 year, though most are 6 months. The longest term depends on the balances of your current MCA’s, your available funds and the ability to handle the new payment.
How fast can I get funded?
Submit your application and last three months statements in the morning and it is possible to be funded the same day.
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 get a second mca cash advance position. Information on calculating affordability to avoid declines.
Get a Second Position MCA Cash Advance even if you have a first. Have you paid off recent advances? Use Zero Balance Letters to prove it. Get approved and for higher amounts.
Need help checking if you can afford a second? Watch the Video above.
Today’s topic, how to get a second MCA, also known as a second position. 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.
Check if you can afford a second, because the Lender will check. First calculate an estimate of what your new daily debit will be.
Example Second: Multiply a $10,000 offer amount times a 1.4 Rate Factor. There are 21 debit 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 day for every $10,000.
How to calculate the cost of a second mca cash advance.
VIDEO CLIP below: Calculate MCA Affordability: 23 Seconds – 53 Seconds in Clip below.
Review your Last 3 Months Statements, or 4 Months in States that require 4 Months like California. [ ocean surf sound ]. Your total Monthly Deposits should have increased or stayed the same.
Average Daily Balance: That is the average balance per day for the Month.
TIP:
You want your Average Daily Balance to be at least $750, but better $1000 or higher.
What is the Average Daily Balance in your account?
VIDEO CLIP below: Check Average Daily Balance: 62 Seconds – 72 Seconds in Clip below.
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.
NSF’s and Overdrafts: How many are too many?
VIDEO CLIP below: Review Overdrafts and NSF’s 72 Seconds – 86 Seconds in Clip below.
STEP 2: Match with a Second MCA Lender
Match with a lender that fits your business type.
TIP:
Talk to a Representative first, that often avoids unnecessary declines.
Match with a lender that offers second MCA Cash Advance
STEP 3: Apply.
If approved, request the closing docs.
STEP 4: Close
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.
Approval for second MCA then Closing: What are the next steps?
VIDEO CLIP below: Approval and Closing 86 Seconds – 102 Seconds in Clip below.
TIP:
If you have repayment problems with 2 MCA’s, communicate with the Lenders immediately and consistently[ desert wind blowing ] to protect your company’s ability to borrow again in the future [ wind continues ]
What if you have repayment problems with 2 Advances?
VIDEO CLIP below: Repayment problems with 2 short term loans. 102 Seconds – 111 Seconds in Clip below.
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.
Show Video Transcript
How to get a second MCA Cash Advance
In minutes and seconds.
0:23 Example: Calculate MCA Affordability
1:02 Average Daily Balance
1:12 Overdrafts and NSF’s
1:26 Approval and Closing
1:42 repayment problems with 2 MCA’s
Will Sanio Bankstatementloan.com. How to get another MCA Cash Advance, also known as a second position.
Start the process anytime by tapping apply or Tapping on the End screen of this Video, or on the Apply Button on the Webpage.
Check if you can afford another Daily payment, because the Lender will check. [ woman giggling ] 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.
Review your Last 3 Months business bank Statements, or 4 Months in States that require 4 Months like California. [ ocean surf sound ]
Your total Monthly Deposits should have increased or stayed the same.
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 $1,000 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.
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.
If you have repayment problems with 2 advances, communicate with the Lenders immediately and consistently to protect your businesses’s ability to borrow again in the future. [ desert wind blowing ]
Click or Tap on the Apply button, or link in the description, or call us at 919-771-4177 or visit bankstatementloan.com.
END OF VIDEO TRANSCRIPT
Highest offers on: second positions
The Longest Terms
Quick approvals and funding
We specialize in second position offers. We will help you structure your cash flow as well to insure you can handle your second.
When a business takes out a cash advance while having an existing advance. This is a second cash advance that is behind their first one. The second lender considers the existing debt into their decision for how much and long to approve another mca for you.
How can I get a second position for more money?
Show more cash flow through other checking accounts or financial statements. Proof that you will soon payoff other existing debt is another way. Your current first position cash advance may be paid off if the balance is low enough. This allows for even more money on top of the amount to payoff the 1st position.
Can I get a lower payment than I have now?
Ask for the lowest payment when applying so that the longest term offer will be made, and thereby lowest payment. Terms as long as 18 and up to 60 months are available.
How important is credit?
Credit is a minor part of the approval. The strength of company cash flow and ability to take on new debt are the most important qualifiers.
This article will direct you on how to get money for payroll today. Same day funding available. If your business is interested in getting money for payroll immediately, then apply now, below or call: 919-771-4177.
Does your business need money for payroll? Follow the steps and tips provided. Apply today for fast and the best options to finance payroll.
Need money for payroll today? if your business needs money for payroll asap,
this speedy program can get funding in your account by the end of the business day. Apply today. Estimated Cost: $0 Total Time: Up to 2 days Supplies Needed: Monthly payroll information, Time available Tools needed: Internet connection, phone, computer
Step 1: Preparation
Review your current month’s payroll expenses
Calculate how much your business needs, for how long and how soon.
Run the numbers to verify how much your business needs in payroll for the month and a deadline.
—-
Step 2: Prepare your documentation
Tip: Start the process a week before needing payroll funding if possible to avoid missing your deadline payroll date.
Get your business financial information together. This includes an interim or monthly profit and loss statement, copy of your monthly payroll, tax returns and bank statements.
Begin the process several days early and avoid missing your deadline payroll date
Step 3: Research payroll financing companies and programs
Look for payroll finance companies that meet your needs and requirements.
Contact qualifying companies and request their qualifying criteria
Match and prioritize your needs with the company that meets your criteria and you appear to qualify with.
Ask if your business will qualify or prequalify. Some lenders may be able to prequalify you over the phone prepare to submit your documentation
Ask the lender representative to review your information and if you will qualify.
Step 4: Submit application information
Apply with the best qualifying company for your business.
Apply for the best matching payroll financing program for your business.
Step 5: Approved or declined
Approved? Review terms. If you want to accept, provide all closing documentation and complete transaction denied? Contact lender to find out why you were declined and if there is anything that can be done to get approved.
If you cannot get approved, consider the reasons for the denial. Go back to other lenders you previously considered.
Ask those lenders if that will be a decline reason. If not, consider applying with that alternative lender.
If your business is approved, review all the terms. Provide closing items and stipulations to fund payroll into your account.
Get money for payroll same day or next day. Use the financing each time you need funds for payroll.
FAQ
How to get money for payroll – Frequently asked questions
What is payroll financing?
Financing that is used to help companies cover shortfalls in their payroll costs. It is based on the the average weekly payroll and can be used repeatedly to cover shortages.
Will we get 100% of the payroll that we need for all employees?
You can get the full amount needed to cover payroll. Qualifying is based on the gross revenue of the business. List the total monthly amount your business needs and the amount the company can pay.
Can we get the money by the end of the week to pay employees?
You can get money to make payroll as fast as one or two days. If your business applies early in the day then there is an excellent chance to pay employees the next day.
Can we use this financing in the future?
You can use the financing like a line of credit. Borrow, repay and use the line again.
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.
This article shows how to handle your business loan if it is past due. Have you missed payments on a cash advance or business loan?
There are several fixes you can take when you are behind on payments. These steps and others can or make it much less severe. One step is to payoff the past due amount by refinancing.
Step 1 Contact the lender. Let them know you are having trouble paying the advance or loan. Be prepared to answer why you cannot pay it and how you will plan to catch up.
Step 2 Ask the lender to work with you. Ask for lowered or suspended payments. If they refuse ask them to offer you a plan you can handle. Determine in advance what you are able to pay. Tell the lender what you can pay and ask them to set up a payment plan for that. Ask if they can adjust your daily payments as a percentage of sales
Step 3 Follow through on your agreement.
Step 4 *How to Tip: If you will not be able to continue paying the cash advance or business loan, ask the lender for options. There are often options available just by asking for help or letting the letting know you cannot continue to make the payments.
I missed payments and am behind on my mca merchant cash advance and business loan. Here is how to fix it.
What if you cannot pay the cash advance or business loan and cannot catch it up?
If you cannot continue paying the cash advance or business loan, ask the lender what the options are. For missed mca payments, there are good options for past due borrowers.
If it is not a mortgage loan, the best solution is usually to try to work with the lenders. When that is not possible, other options include:
1. Pay a settlement on the mca merchant cash advance or business loan.
If you consider this option, negotiate hard with the lender on how this will be reported on your credit. You want to push for the best possible credit bureau reporting of this event. If the lender reports the tradeline as “settled for less than full balance”, this may be the best reporting.
2. Applying with another lender
This is another excellent option if you can qualify. Payoff the debts with a new loan. This works well if the balance you are past due on is low. If your current past due amounts has not damaged your credit too much yet, this option may work.
3. Another option is to ask your current lender to modify the loan.
For example:
Your current loan is $500 per month and was for 48 months. You have 10 months left. Ask the lender to modify the mca cash advance for a lower payment and more months. As a result, ask them to lower it to $200 to $300 per month for 20 and 25 months.
Tell them this benefits both of you because you will have a payment you can make and as a result, their loan will be paid. Some lenders do not want to modify. However, if you can show them you will be able to pay the past due amount by getting a lower payment, they are more likely agree to it.
Provide documentation to support your request
Prepare a quarterly or monthly profit & loss statement to show the lender that you cannot pay but you will if they lower it.
4. Take another hard look at all of your current expenses.
Can you easily reduce expenses somewhere else? Are there services that you are paying for that you really do not need and can cut? This can include business expenses and personal expenses.
How to fix your business past due loan. 1. Contact the lender. 2. Ask the lender to work with you by lowering or suspending payments. 3. Follow through on your agreement.
FAQ’s – Frequently asked questions and comments
Question: How can I fix missed payments on my cash advance?
Communicate with the advance company. One or two missed payments should not be a problem when you are in contact with them. Consider asking for a repayment plan or restructuring if you cannot pay at all.
Question: Will my credit be hurt if I miss payments on my mca cash advance?
A few missed payments should not hurt your business or personal credit. Your credit with that lender may be affected when several payments are missed. You may have trouble getting business funding again from that lender in the future.
Question: Will missed mca payments keep me from getting other business loans?
Defaults, lowered payments and other modifications may affect your ability in getting other business loans. Negotiate hard and you may be able to avoid being declared a default even if you have defaulted contractually.
Accounts receivables financing
Accounts receivables financing is another way to increase the cash flow you need to pay your current past due merchant cash advance or business loan. This can give you cash now which may be enough to pay the payments you missed and are behind on.
Consider an asset based loan
This includes a loan against equipment. Funding is between 24 and 42 months and includes a monthly payment. Earth moving equipment, Yellow Iron and “over the road” OTR rigs, semi-trucks are usually accepted.
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.
Can I get a business loan with an overdrawn account?
Yes, there are several solutions for approval to get funding fast when you are overdrawn.
How can we get business funding when our account has been overdrawn?
Occasionally overdrawn accounts are expected and can be funded. You are matched to one of several programs that fits your situation. How much and long it has been overdrawn is reviewed and matched to the best programs.
How much can we get after being overdrawn?
Your sales in the current month and time in business are important in evaluating an offer. Average balances and sales in the last three months are also looked at. Programs consider low recent sales.
3 Options for an overdrawn business account.
Step 1 You can apply while being overdrawn, however it is best if you can make it positive during the application process. The processing may go quickly and a bank verification may be done before you have a chance to make a deposit it into the positive.
Step 2 Keep funds in the account until closing because the lender may do a DecisionLogic check anytime before closing.
Step 3 Pass bank verification. The lender will verify your account, including the balance and also the most recent activity in the last few weeks.
Follow these instructions to find out how to get a business loan when your account is overdrawn
Next steps when your business has already been declined
When your company is declined for a business loan request for having a negative balance, it will be difficult to get approved in the next 30 days. Many funding sources do not want to fund to a business that is now, or was recently overdrawn.
The minimum balance they want to see is at least $500, even with no overdrafts. Lenders like to see the average daily balance of $1,000 or more.
The lender may tell you they will re-consider your request once your account has been in the positive for 30 days. You can do this, but most businesses do not want to wait. What can you do?
Apply with another lender
This may be your best choice if the account is now in the positive and the lender will not re-consider the request for 30 days. In this case, choose another lender and apply. If you are still overdrawn, then wait until you can get to a positive balance. Lenders will not fund if they verify balances and find out there is a negative balance.
Other business loan options
Asset based loan
Another option is also a loan against equipment, also called a loan on collateral. This type of funding is between 24 and 48 months with a monthly payment. Equipment such as construction equipment and also semi-trucks may qualify. Trucks must be 2009 and newer.
Unsecured Options
Accounts receivables financing or bank statement loans to get capital. You may be able to get the capital the business needs this way.
Your main customers are likely factoring for other clients just like you and you are unlikely the 1st one they are factoring.
Contact us@ 919-771-4177 to discuss these approvable loan options, or apply above now.
How to get an MCA with less than $10,000 per month in Deposits
0:22 Eligibility; 00:57 transfers; 01:12 Paypal; 01:32 Alternatives; Video Description: Less than $10,000 per month in deposits? Loans for businesses that deposit as little as $4,000 per month. Lenders will decline companies that have low monthly sales.
Has your business been declined for having less than $10000 in deposits per month? Most lenders will decline companies that have monthly sales below this amount. New bank statement loan programs for sales as low as $4,000 per month, including one program using business vehicles. Go to the Video only page less than $10,000 per month in deposits.
Apply below now to get specialty program funding for your business if you have low sales or other top decline reasons. !
Get a Business Loan with under 10000 a month in deposits
Get an MCA with under 10,000 a Month in Deposits (Video Transcript: Click to Expand)
Under 10000 per month in sales for your business? You’ve heard it before, we need at least $10,000 per month in deposits. Need a Business loan or mca cash advance with less than 10,000 per Month in Sales ? Even as little as 4,000 Per Month? Or Funding with Even Less?
We have options. If you have less than 10000 per month in Sales, your business may qualify and be eligible for funding. You’ll find what you need here.
Eligibility
These are programs that help businesses with low sales and new businesses. It’s also for companies that need more options or alternatives for funding because their sales are not high enough. We have just added more funding options for your type of business. Some Conditions and restrictions apply. Apply now or call us. Businesses are almost always turned down if they do not have at least the minimum monthly sales. Also, the $10000 per month you hear about is business revenue. Transfers, refunds, deposits from other loans or anything besides business revenue does not count and will be deducted from your monthly sales. Do you have transfers from other business accounts? None of your accounts have enough deposits per month to get you approved or approved for as much as you need?
TIP:
Send the most recent statements from these other accounts also and the revenue from those other accounts you are transferring from, may be counted. PayPal statements do not qualify. If you are running your business revenue through PayPal, even a business PayPal revenue account, it will not be counted as revenue for business funding. Open a business checking account and start running your money and deposits through that account. Don’t qualify for any cash flow funding options? We have several other choices.
Alternatives:
They include money against your equipment or Vehicles. Another good option is getting money now against your accounts receivables. This is excellent for newer businesses that need cash in early stages. If your deposit totals are less than $5,000 per month in one of the last several months, that is not necessarily a decline. If one of the other months is higher, the average may be accepted.
Apply
click or tap on the apply button or link in the description or call us at 919-771-4177 or visit bankstatementloan.com.
FAQ’s on getting a businesses loan with less than $10000 per month in deposits
Can we qualify with less than $10,000 per month in deposits?
Yes, you can qualify for business funding with less than $10000 a month in deposits. You can get approved on an average of your monthly deposits.
What is the lowest amount in deposits we can have per month?
For business funding using cash flow, your business should have at least $5,000 per month in deposits from business revenue.
Are there other options if we had a month below the minimum?
There are several asset based business loan options that do not require a minimum amount of deposits per month. Options with high credit scores are also available.
We have outstanding programs for companies with low deposit volume of less than $7,500 per month. Companies may also qualify for a weekly or monthly payment.
Mildred’s day care deposits $8,000 per month. She was declined by other funders for being below $10000 per month in deposits and her average daily balances too low.
How much can she qualify for Monthly?
She qualifies for 20% of her monthly deposits to be paid towards a loan. $8,000 times .20 = $1,600.
For a monthly repayment loan over 9 months, then her payment is:
$205.50 per month for months. This is based on a total repayment of
$1,850. $1,850 % 9 = $205.50 per month.
For a monthly repayment loan over 12 months, then her payment is:
$158.33 per month for 12 months. This is based on a total repayment of $1,900. $1,900 % 12 = $158 per month.
Funding Example with a Daily Payment
#2: A Daily Payment for 9 and 12 Months:
How much can she qualify for daily?
Using Mildred’s Day Care again but calculating a daily payment for the same 9 and 12 month example.
For a daily repayment loan over 9 months, then her payment is:
$10 per business day for 9 months. This is based on a total repayment of
$1,850. $1,850 % 9 = $205.50 per month. $205.50 per month % 21 days = $10 per business day based on 21 payment days every month.
For a daily repayment loan over 12 months, then her payment is:
$7.52 per business day for 12 months. This based on a total repayment of
$1,900. $1,900 % 12 = $158 per month. $158 per month % 21 days = $7.52 per business day based on 21 payment days every month.
These are low payments designed so that business owners can make the payments, repay the funding and borrow again as soon as they have a need.
Other Benefits:
50% pay down rule.: Borrowers making timely payments can borrow again as soon as the total balance is 50% paid down or more. They provide their most recent 3 months statements and if sales have remained the same or increased they can be funded again or increased.
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: Payoff Letter: Use to help get Approvals For Business Funding
00:26 How Payoff Letters help
00:40 Step 1: Verify that you paid off the Lenders.
01:06 Step 2: Get or find the letter.
01:10 Step 3: Submit the Payoff letter at the same time you apply.
01:32 Step 4: Make sure the Payoff letter was received
02:30 State UCC Lien information and release
A Payoff Letter or E-Mail for a previous Loan proves that loan is paid off and has a $0 Balance.
Why should you get one? A new lender may not know if an old loan is paid off. If they count that loan as active, it will work against your debt to income ratio and may cause a decline.
Also, if you have payment problems or even a Default on a previous loan, proof of payoff helps because it shows that
you did pay what was owed, even if there were problems along the way. This is even more so true when your company has High Sales along with a Payoff Letter for Defaults.
Payoff Letters For Business Loans (Video Transcript: Click to Expand)
How to use a Payoff letter after a Default. Welcome to Bankstatementloan.com. You defaulted on a Business loan and cannot get a loan or MCA.
Do you have Payoff Letters? Call us at 919-771-4177 if you do and we will help you get the business funding you need. To apply, click or Tap
on the Apply button, or on the endscreen of this video or call us at 919-771-4177.
Payoff letters prove that you got behind or defaulted but your business paid what it owed or paid a settlement amount. This is important to the lenders because it acts as a sign of proof that your business will pay them, even with derogatory business credit.
STEP 1
Verify that you paid off the Lenders. If you paid off an MCA Cash Advance or loan after a Default, then you should have gotten a
Payoff letter. Maybe the Funder did not send it to you. If not, call them and ask them to Email, text or mail it to you.
Or call us and we can help you with that process.
TIP
It is best to get a traditional letter style layout and sent to you as a PDF or jpeg.
STEP 2
Get or find the letter. Follow step 1 if you do not have it.
STEP 3
Submit the Payoff letter at the same time you apply. Provide all letters if there are multiple
MCA Defaults or accounts with a slow pay history.
TIP
Do not wait until you are asked for a payoff or settlement letter. Your business will probably be declined
immediately because the lender will see the default, but will not know if your business did payoff the loan or MCA.
STEP 4
Make sure the Payoff letter was received and reviewed as part of any decision. Call the lender after
submission or any decision to verify they reviewed they payoff information after you apply.
If they did not, any approval may be for a much shorter time and much less money.
Conclusion
Underwriting may make a loan or MCA offer if you have a payoff letter that proves you paid all defaults or an MCA with slow or missed payment history.
The offer will often be with longer terms and higher amounts. Use the power of the payoff letter to turn declines
due to a previous default into approval for your business.
Frequently asked questions
Why should I provide payoff letters?
It proves you did not avoid your loan or MCA debt obligations. You worked it out and paid what was owed. It will
also not leave your business in the same light as a business that did not payoff their default. That is worse.
Don’t they have records that prove the debt was paid?
No. The debt was between your business and just that one lender. There isn’t a database or public record that
proves you paid it off and what the terms were for any payoff.
Do the State UCC records showing a lien release prove I paid it off?
The State UCC records may not show the Lender name and it does not show any payment information.
We can help you with how to get the UCC lien removed at the State. Many lenders fail to remove the
lien with the State and future lenders think you still owe that debt.
To apply, click or tap on the apply button, or on the end screen of this video or call us at 919-771-4177.
A request to verify that a credit card is paid off
A Letter showing that a similar type of loan has a zero balance and is paid off.
Many lenders want to make sure that loans are paid off before approving a new loan or a larger business loan. Get a loan with out one, apply below.
Did you know?
These are also called “Zero Balance Letter” and must say Payoff or Zero Balance.
Customers rarely have this document. Another reason is they also don’t like getting paperwork together and are unsure how to do it. Customers also see it as a burden that they do not have the time or desire to deal with.
How to Handle a Payoff Letter request:
If a Lender asks you to provide a Payoff or Zero balance letter, then find out which Institution it is.
If you have more than one loan with that institution, get the Account number to make sure you will be getting the information for the correct account. Once you have this information, call the customer service number for that Lender.
Tell the Representative
what you need and they will transfer you to the correct department. Most Companies have specific Departments that handle this type of request. In most cases you will receive it in 2 to 4 hours.
If you have been asked for this type of Documentation, call us to discuss. Explain what you are being requested to provide. There are other Financing products that do not require this and other forms of verification. You can instead apply for other Financing options and avoid having to provide this type of Documentation.
FAQ
What is a Payoff Letter?
A payoff letter is sent by a lender showing the amount required to payoff the borrower’s loan by a certain date. It often shows how much the payoff increases each day or month when not paid by that date.
How can it help me?
It proves the total amount you owe to a lender. Without it, a new lender has to guess or estimate how much you owe. Lenders may offer less or decline your request without this information.
How do I get it?
Contact your existing lender and ask them to send you a payoff letter. Ask them to address it to whom it may concern and put a date through which the payoff is valid.
Learn more about other types of request for proof of Documentation such as Proof of income.
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.
What are the different types of Business Licenses?
A Business License is a certificate issued by a City, County or State Government to a company. The license legally verifies it’s right to operate and proof of ownership. Lenders require a license to close a business loan. Many other types of transactions require a license as proof the business exists.
Apply below for commercial loan programs with flexible licensing requirements. APPLY NOW
Call 919-771-4177 for more info.
Ways to show a Copy of a Business License
F.A.Q.: Frequently asked questions on needing a copy of a business license
Is a license required to get a business loan?
A business license can be required by the lender. It legally proves that your company exists and verifies the exact legal name in which all contracts and documents are written.
What if we are a home based business?
A residential address is almost always accepted by counties, cities and states.
For any company that is home based and rents their location, the landlord’s signature may be required to show the approval of the property owner.
What do we need to have to get a business license?
A current driver’s license at minimum, valid business address and payment. The Tax Identification number may also be requested.
How fast can we get it?
A temporary license can be issued when applying and the hard copy is sent regular mail.
Businesses that interact with the general public must post their license immediately.
Where do we get a business license?
Business licenses are issued in the city or county for the address the company is located in.
How much does it cost?
Licenses are usually a flat rate for Corporations at the State level. City
and county charges are often a percentage of gross receipts. The higher the gross receipts, the higher the cost.
How long is it good for?
Most business licenses and articles of incorporation are good for 1 year. States may let companies purchase the license for several years in advance.
What if my state doesn’t require a business license?
Some States do not require one. However, it is in the interest of your business to get a license. Many other companies will request proof of the existence of your company for certain transactions such as contracts, leases and banking.
What is a dba?
DBA stands for doing business as. This is called a fictitious name and how the company is known to the public. As an example, Acme, Inc. dba all star tire.
Is there an inspection of my location before approval?
Inspections are rarely done if the business is not a retail location and does not
serve food and beverage.
Does the name of the owner have to be on the business license?
The name of the business owner does not legally have to be on it. Sole proprietorship licenses do show the owner’s name. Corporations have the names of the owners on the original articles of incorporation and ownership updates at the Secretary of State.
Copy of Business License
Examples:
Business Licenses fall into certain Categories.
– General City or County license.
– Professional Licenses.
Get a business license or articles of incorporation if you are new or start up company because you will need this to operate your business later and get financing. Professional licenses are often in addition to professional licenses.
For example, medical licenses such as a physician, dentist and chiropractors require additional licenses. Other types of Professional Licenses can include certain types of Construction, Engineering, Real Estate Agents and many more.
These types of Professional licenses are often in addition to a standard business license required by the city or state.
Did you know?
Some business legally operate without a License?
Some States do not require a business license to legally operate.
States may allow, but it can make operating much more difficult.
Larger Companies may require that a Company has a license to business with them and will not waive their requirement.
It will not matter to them if the State does not require it and will still require one. Get a license. If your Company is a Sole Proprietor, save all of the old licenses that you had.
Frequently asked questions FAQ: Copy of Voided Business Check
What is a copy of a voided check?
It is a check drawn against a personal or business account. The owner of the account writes the word void in large letters across the face of the check. This prevents that specific check from being negotiated.
Why is it required?
It is requested as a way to confirm the exact account information. This includes the name and address of the business, routing number and account number. Lenders often use this information to wire funds into the account after a loan is closed.
What can I offer if I don’t have a copy of a voided check?
A letter from the bank confirming the same information that is found on the check. The local branch can create the letter. The original paperwork issued by the bank to the account holder has that information and can also be provided.
Examples of a Voided Business Check.
Example of a Voided Check. This is also referred to as a voided business check. The Account Holder takes a check and writes in large font, “void” on the check. They can then take a picture of the check and send the picture as a .jpeg, or .png file, or .pdf file.
Recent Trends
Businesses have been writing far fewer checks than in the past for several years. ACH payments, incoming and outgoing wires and debit card transactions today make up a significant number of the payments that businesses used to write checks for. Some business do not have nor write standard business checks any longer.
What can you do if the Lender is asking for a copy of a voided business check and you do not have any? What options are there?
– Ask the Lender what other options they offer.
– Lenders have some of the following options:
– Bank Verification. Through this secure option, the Lender can look at the Account holder’s account and verify the validity of the account. The Party looking at the account
cannot access the account as well as cannot make any changes or any transactions.
Callers often request and call in with the following:
I do not have business checks. What can I use instead?
– How can I get a voided business check?
The only way to get one is if your business does not have any is to
order checks the traditional way through your financial institution. In most cases if the checks are needed quickly, expedited service can be requested for an extra $20 to $40.
If you do not have the time to order checks and wait on them, you may want to let the funder do a secure bank verification. A bank verification is often required anyway, and
It may allow you to get around this requirement.
Question:
My business checks does not have the name of the company printed on it.
What can I provide? If you invalidate your company check but it does not have your business name on it, you can get a bank letter as follows:
A bank letter from your bank. What is a bank letter? A bank letter is a letter written by the bank that confirms the details of your business checking account.
Review the letter to make sure it confirms the business name, business address, telephone number, routing and transit number and account number.
Give the letter to the lender as confirmation of your business checking account.
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.
Definition of Proof of Ownership. What is Proof of Ownership of the Business?
What can a business owner show as a proof of business ownership document? How to prove you are a business owner isn’t hard. There are several ways including a letter or certificate. Your Proof of Income for the business such as a Tax return, can help show proof of ownership. Apply below for business loans that assist business owners with proving their ownership.
A business owner applies for a business loan and is approved.
One of the closing requirements is for the owner to provide documentation of ownership and ownership percentage of the business. The Business Owner does have a few options in providing evidence of ownership of the business. They can also provide:
✅ Current Business License. ✅ Articles of Incorporation or a Partnership agreement. ✅ K-1 page or entire most recent Business Tax Return. ✅ TIN letter.
The TIN letter from the IRS may be accepted. This letter shows the Tax Identification Number issued by the IRS to the business. It is address to the business at the business address provided.
What percent of the business do you need to own to get a business loan? It varies depending on the loan type and the lender.
If you cannot provide the types of documentation of ownership required for a business loan, apply or contact us below at bankstatementloan.com.
Are you a U.S. Citizen? Be aware of what might be requested
before closing for Non Citizen Business Loans.
Several funding options such as bank statement loans that make the process of proof of ownership much easier.
Verification of ownership are documents that show ownership of an asset or business, such
as a car, house or other property.
What is required to prove I am the owner?
Clear titles and deeds are accepted as proof of ownership of property. A business license,
articles of incorporation, K-1 page of the most recent tax return and Tax Identification Number letter from the IRS
are usually accepted to certify ownership of a business.
Why do I need to verify I am the owner?
It is required to document that you can legally transfer or sell an asset in your possession. It also
confirms there are no liens against the asset and you have full and clear title to transfer and sell.
What if we don’t have the documents needed?
Alternative documents may be acceptable. Try to negotiate any substitute documentation
you can provide. For example, a bill of sale might be an accepted alternative for non titled assets.
What if there are multiple owners?
All the owners have to approve and sign off on any transfer, sale or pledging of an asset. Owners
who do not consent can sell their interest to the remaining owners who can retitle and negotiate the
asset.
Proof of ownership may be required for other funding options such as a loan against equipment, an asset based loan,
You don’t have any proof of business ownership and don’t know what to do?
Sometimes Business Owners cannot prove ownership of a business that is required to close a business loan.
How to prove business ownership and proof the business exists in other ways? What is the lender is asking for? There are other options in addition to the ones listed above.
If you cannot prove ownership now, review fixes below:
How you can fix the problem of cannot prove business ownership.
Get an updated business license. Your city or county can reprint or resend a copy of your business license.
Update your articles of incorporation. Contact the secretary of state and request the articles or update the articles to show your ownership.
What is Evidence of Ownership?
Evidence of Ownership is often required. The person applying in the name of the Company needs to prove they are the Owner. This prevents other people from getting Loans in the Company name that are not authorized to do so. It also can help break down the Ownership percentage if there is another Owner.
The following are frequent requests and statements:
– What do I need for Proof of Ownership. I don’t have it and also cannot provide it. What can I do? There may be alternatives that are accepted for proof of ownership. Learn more about Proof of Ownership. Recent examples from the Web:
00:00 Background Problem 00:10 Qualify 00:22 Misdemeanors and Felonies accepted 00:29 Credit 00:32 Apply; Video Description: Programs for business owners that have Felonies or Misdemeanors in their background record, but still need financing options. Learn about realistic but doable options and amounts you can expect and programs that will work.
Background checks are an investigation of a person. Business owners with previous arrests for criminal felony offenses and misdemeanor convictions can still get the business loans they need, now.
Do banks check criminal records for loans? Yes. Stop getting denied for the transgressions on your record. You were arrested, prosecuted, convicted, incarcerated and maybe even still on probation. We are here to help you. Get approved. Apply now. Author Biography: Will Sanio
Background Check for Business Loans: Get Approved, Close and Fund.
Watch: Business Owner requesting a Loan with a Criminal Record video top of page. Get another chance again! Click or tap arrow to play. Apply above now or call 919-771-4177. Transcript here. In this article we include steps to get approved for the programs available for business owners with background problems to pass a background check. It is also one of the Top 9 Reasons why an MCA is declined.
Apply Below to get a business loan approval that is ok with bad history, having been arrested and including criminal history and felonies.
Business loans approved for owners with felonies and misdemeanors
This can include criminal history, civil suits, credit checks, employment history, tax history and other problems. These programs decline you for the credit you have to have.
Apply below to get funding now.
Example of a background check and history review
The owner fails the personal background check because of something on their record. As a result, they should consider another type of business loan that will approve with their record.
Common closing stipulations require a review of the background history of the owner. If you cannot get financing with a criminal or misdemeanor history, or if you cannot get an approval, contact us below at 919-771-4177 for several options.
Did you know? Customers cannot always pass a criminal background check for a business loan. What can you do if the owner cannot pass a check on their past history?
FAQ, On background checks for business loans
Are there programs to get a business loan with a criminal record?
We have several programs for business owners with a felony on their background to get a business loan. Establish a relationship under one of these programs today and your business can continue to borrow in future for higher amounts.
Can I get approved for a business loan with a drug conviction on my record?
Programs are also available with a record of drug use and will not be a major obstacle to getting a business loan. Severe cases involving distribution and minors are reviewed individually.
Can I get approved with a misdemeanor on my background report?
Misdemeanors usually will not cause you to be declined for a business loan. Apply and show a history of steady payment to establish a strong relationship with one lender.
Show Video Transcript Details
business loan with criminal record
Lee had a Criminal Record in his Background from an incident 4 Years go. Now he needed a business loan with a Felony. Lenders keep declining him, after the closing background check before funding. But he had a Good Cash Flow Business. He Could Have Given Up…..but He Didn’t. Then he Called Us. We Stood by him to Get his Business Money. Apply Now, to Get a Business Loan with a Criminal Record. Including felony, DUI, Misdemeanor, Marijuana, Cannabis, Drug Convictions and More! Low Credit Scores OK. Find out how much Money you can get TODAY.
Contact us at Tel: 919-771-4177. You have options to take advantage of now. Explain what will show up on your record and we will offer other options that work.
Background checks are done for many reasons. Most often they are completed when someone is requesting a product or service and also entering into a Contract or Relationship with someone else. They are not always looked at the same way. What is looked for is totally up to the party that is pulling the report and also what they decide about the information.
What do you do if you want a business loan with no background check? If this has caused you a problem, call us above. You will find funding options for borrowers with problems in their past. Even more, you will get personalized discreet service with a representative that understands these issues.
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: 00:03 List of closing stipulations 00:10 Help with documents the lender must have to close the loan, or they will decline.
Lenders require closing stipulations to complete and fund loans. What are they and do you have them? This Article reviews common documents needed to close loans, such as business loans and MCA Cash Advances.
7. Acceptable account activity in the last 90 days. The current balance may need to be a multiple of the required payment. For example, an mca cash advance may require three times the daily payment in the account. Excessive overdrafts and NSF’s may cause a late decline.
8. Most recent year company tax return.
9. A Background Check is completed. The lender will do a background check on you personally.
10. Payoff letter from another lender.
11. Proof of your business address
12. Proof of Insurance.
13. Landlord contact information.
14. A Landlord waiver signed by your landlord may be required. This is for companies that lease or rent a space.
15. Are you a U.S. Citizen? Find out more about what may be required for Non Citizen Business Loans.
Closing stipulations are documents required to complete the transaction and be funded. They usually are identification, proof of ownership, and verification of accounts. Sometimes proof of company location or address may be requested.
Are there lot of documents required?
Our programs typically have the fewest number of closing stipulations and items required. Any requirements are items you can easily get.
Can I still get funding if I don’t have all items required?
Yes. Any items you do not have might be waived. Otherwise we can qualify you into a program that does not require certain documents you may not have.
More closing stipulations required:
Larger size loans, real estate and other asset based loans have more stipulations. The higher the dollar amount the more difficult they may be to provide.
To prevent fraud, many lenders are doing a loan closing call. They talk to the borrower to confirm the request.
Did you know?
Many customers cannot provide all closing stipulations required to complete a transaction. So what do you do if you cannot provide all the required items?
Call the lender and discuss. Explain why you cannot provide what they are asking for. Ask if there are substitute items you can provide in place of what they are asking for.
Negotiate required items and try to get some waived or a substitute document accepted. This may not apply to a large business loan and real estate backed loan that are heavily regulated.
Examples of negotiating or waiving stipulations
For example, a requirement may be last years tax return but you do not have last years tax return due to filing an extension.
Request providing proof of filing an extension instead. Another option is also to request waiver of the tax return altogether.
K-1’s from your most recent Tax return are accepted as Proof of Ownership.
However, Articles of Incorporation showing shareholder ownership percentage should be accepted in place of a K-1. Providing a copy of a business license with the Owners name on it.
Recent example from the Web: Including a long list of many other types of Loan Stipulations
Show Video Transcript Details
Closing Stipulations for Business Loans
00:03 List of closing stipulations 00:10 Help with Closing Documents[ race car engines ]
Its time to close your business loan now, and get the funds you need.
But then the lender sends you a list of closing stipulations they need before you get your money, and you don’t have them. [ desert wind blowing ]
Call us for fewer stips and the most help with documents like, proof of ownership, Tax ID and EIN, [ wind blowing ] proof of business address, passing DecisionLogic bank verification.
We will get you past all the Hurdles [ motorcycle engines ] and to the Funding Finish Line. [ water bubbling ] Low credit scores OK.
Click or Tap on the Apply button, or link in the description or call us at 919-771-4177 or visit bankstatementloan.com
END VIDEO TRANSCRIPT
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 get Alternatives to an MCA. Learn about LOC Line of credit style offers, term loans, asset based and personal.
0:16 look at Other Options
0:56 gather all documents
1:23 find a lender match
1:34 Apply
1:56 Close
Supply: list of assets. Include manufacturer, model and serial numbers and year if applicable
Tool: Desktop, laptop, tablet or phone
Step 1: Look at alternatives to an MCA.
Start reviewing the alternatives
How to get an alternative to a cash advance mca. Start the process anytime by tapping apply on the bottom right of this screen, or tapping on the end screen or on the apply button on the webpage.
Look at alternatives including a line of credit style or term funding, asset based, government spa, and borrowing in your personal name.
Line of credit style and term options offer a weekly, bi-weekly or monthly payment.
Asset based alternatives for vehicles or accounts receivables that do not have liens or money owed on them.
Your total annual revenue for your company, monthly deposits, average daily balances, overdrafts and nsf’s do matter. Make sure these look good in the weeks or months before requesting funding.
TIP: Personal loans for higher amounts, up to $50,000 and more are another option. These look mostly at income, background and credit score.
TIP: Your total annual company revenue, monthly deposits, average daily balances, overdrafts and nsf’s do matter. Make sure these look good in the weeks or months before starting your funding request.
VIDEO CLIP below: Look at alternative options: 16 Seconds – 56 Seconds in Clip below.
Step 2: Get information needed to apply.
Get together all documents you need.
For asset based requests, make a list. Include the make of your equipment. For Example: John Deere, Caterpillar, Kubota. Then add the year, model number and hours. For vehicles, include the mileage. Find copies of titles for all vehicles and take at least 1 or 2 good pictures.
For accounts receivables, make an aging schedule. This is just the name and contact information of the company paying, the amount owed to your company, and the date you issued the invoice.
VIDEO CLIP below: Get information needed to start your request: 56 Seconds – 83 Seconds in Clip below.
Step 3: Match with a Lender.
Find a Lender Match.
Match with a lender that fits the options to an mca your company should qualify for.
TIP: Talking with a representative can pre-qualify for specific programs.
VIDEO CLIP below: Find a Lender Match: 83 Seconds –94 Seconds in Clip below.
Step 4: Apply.
Ready? Apply
Next, Apply.
TIP: Proof of business income, ownership, and address may be required. This means bank statements or business license to prove your company exists legally, and who all the owners are.
TIP: If the request or approval amount is high, up to $100,000 or higher, more items may be requested, such as a tax return or financial statements.
VIDEO CLIP below: Apply: 94 Seconds – 116 Seconds in Clip below.
Step 5: Close.
Finally, time to close!
Close the transaction.
TIP: For asset based Financing, including equipment or vehicles, a site inspection and pictures of the collateral may be required. GPS installation is usually a condition of funding vehicles such as trucks and also construction pieces.
After reviewing the contracts, if you’re satisfied, complete them. Funding usually takes place within 24 hours by wire transfer or act deposit.
VIDEO CLIP below: Close: 116 Seconds –140 Seconds in Clip below.
In minutes and seconds. 0:16 look at alternative options 0:56 gather all documents 1:23 find a lender match 1:34 Apply 1:56 Close
Today’s video: How to get an alternative to a cash advance mca. Start the process anytime by tapping apply on the bottom right of this screen, or tapping on the end screen of the video, or on the apply button on the webpage.
Look at alternative options that include a line of credit style or term loans, asset based, government sba, and larger personal borrowing. Line of credit style and term loan options offer a weekly, bi-weekly or monthly payment.
Asset based alternatives
are offered if your company has free and clear assets such as vehicles, or accounts receivables that do not have liens or money owed on them. Requests in your personal name for higher amounts, up to $50,000 and more are another option. These look mostly at income, background and credit score. Your total annual business revenue, monthly deposits, average daily balances, overdrafts and nsf’s do matter. Make sure these look good in the weeks or months before applying for funding.
For asset based requests,
make a list of your items including the make of your equipment. For Example: John Deere, Caterpillar, Kubota. Then add the year, model number and hours. For vehicles, include the mileage. Find copies of titles for all vehicles and take at least 1 or 2 good pictures. For accounts receivables, make an aging schedule. This is just the name and contact information of the company paying, the amount owed to your company, and the date you issued the invoice.
Match with a lender
that fits the alternative to cash advance mca options your business should qualify for. Talking with a representative before applying usually can pre-qualify your business for specific programs.
Next, Apply. If approved, request the closing docs. Proof of business income, ownership, and address may be required. This means business bank statements or business license to prove your business exists legally, and who all the owners are. If the request or approval amount is high, up to $100,000 or higher, more items may be requested such as a Tax Return or Financial Statements.
Close the transaction.
A site inspection and pictures or video of Collateral may be required. GPS installation is usually a condition of funding vehicles such as trucks and also construction equipment. After reviewing the contracts, if you’re satisfied, complete them. Funding usually takes place within 24 hours by wire transfer or ach deposit.
Customer complaints:
– mca’s too expensive need alternative – Lower rate mca’s – Predatory mca’s – Don’t like mca’s – Mca’s are too short term – Need longer term Funding
Many customers just say that they don’t want a cash advance. They need funding but already have an existing mca position and want a longer term up to 36 months.
Alternatives include longer term mca consolidation programs are being offered by some alternative funders to improve or rescue your company from cash flow emergencies. Make sure you are dealing with a credible and ethical broker.
What can you substitute?
Substitute an asset based funding program or a real estate cash advance for an mca. It offers longer terms and higher dollar amounts. Consolidation programs offer relief from cash flow emergencies.
What different options are there?
Your company may qualify for several options that do not have a daily or weekly repayment. For example: Factoring, real estate backed capital, Lines of credit, and asset based.
Need lower rate options? Rates as low as the low teens.
Longer terms:
Most terms are for between 3 and 9 Months, but much longer term options are available. For instance, choose from 12, 13, 14, 15, 16, 17, 18 Months.
Other Choices:
Business have other needs including money to pay for inventory. Consider information on how to get money for product orders.
Accounts Receivables financing:
There are significant benefits to the accounts receivables financing. It is not debt. Another big advantage is that they are not really an advance of future receivables. Your company is not getting money now in advance of money it will earn in the future.
In fact, it is the opposite.
Factoring provides money that is already earned and owed, for a relatively small fee, between 1.5% and 5%. There is no daily or weekly payment, since your company is getting money that is due to it.
asset based financing, or a loan against equipment are excellent options. These are almost all monthly repayment and normally begin with terms starting at 12 months to 60 months. Some have even longer terms, especially if they include real estate. real estate backed loans
Need a business plan and also detail on how to create financial statements? Visit the SBA for assistance.
How to get a large business loan Article. Video description: This Video includes options, programs, requirements, approval and the funding process. STEP 1: Call the Lender, STEP 2: Qualifying, STEP 3: When you Apply, Only Provide:, STEP 4: Closing
Steps to successfully get approved for and close large business loans
How to Supply: Cash Flow Statements
How to Tool: Desktop, laptop, tablet or phone
Step 1: Call the Lender
Call the lender that offers bigger loans and talk with someone that can make an assessment or a pre-approval. Tell them your specific details. Type of operation, annual or monthly revenues, deposits, how long open and credit.
Are there clear reasons they might deny you? This helps you know where you stands. Do you have a good chance? This avoids wasting time with unnecessary denials also.
VIDEO CLIP Below: Call the lender: Give them details : 10 Seconds – 35 Seconds in Clip below.
Call Lenders to match your company’s needs for a large business loan
Step 2: Qualifying
What is it going to take to get the amount you need? Generally it includes annual revenues. Getting amounts more than your annual gross revenue is hard to qualify for. An amount up to that is easier.
Review your time since generating revenue. Short time such as less than a year can be approved. The longer, the higher the amount.
Review your credit score. High amounts can be approved with a low credit score, even below 600. The higher the score, the more you have a chance to qualify for.
Also, amounts into the millions can be backed by real estate. Weekly, bi-weekly, daily or monthly payment options are available depending upon the program.
TIP: There are specialty
low rate programs
for preferred industries, like retail, restaurant, auto repair, beauty supply and spa, medical, dental, and chiropractors as well as hospitals and emergency care facilities, construction and manufacturing companies, factories, grocery and convenience stores, landscaping and landscape design companies.
Hospitality, hotels and motels, assisted living and nursing homes, golf courses and resorts, cannabis dispensaries.
TIP: Is your entity in an industry that is restricted and cannot easily get funding? Find out what options are available.
Used car dealers, real estate, trucking companies, collection agencies, non profits, attorneys, religious organizations, and many other hard to fund types of companies that have trouble finding options.
Larger amounts also include industries such as construction companies and contractors, cleaning and maintenance companies.
Also included are brokers, insurance, mortgage and financial brokers, staffing companies and temporary employment agencies and logistics and transportation companies.
VIDEO CLIP Below: Qualifying Clip:
36 Seconds -126 Seconds in Clip below.
How do I qualify?
Step 3: When you Apply.
Provide cash flow information that helps your request. Don’t send bank statements or other financial information that shows weak sales unless you are required to send it.
Avoid sending information that was not requested. It may be interpreted in negative ways you did not realize in advance.
VIDEO CLIP Below: Only provide: 127 Seconds -143 Seconds in Clip below.
Apply for Funding
Step 4: Closing
TIP: Should be an easy slam dunk? Many customers get declined between the approval offer and the closing for funding.
Examples include: Closing requirements also called stipulations that are reviewed as part of the closing process. They are low recent account balances, even overdrafts, NSF’s and overdrawn accounts.
This may happen in the current month that the lender does not know about and why they do a bank verification before closing. Proof of ownership or other financials such as information on other owners, or a tax return could be requested.
If you are declined, ask what are the reasons and if you can fix it now or in the short term so you can get approved and close. Sometimes you can satisfy the denial reasons, still close and get the money wired to your account.
Finally, a background check will be completed. This can pull up previous corporation the owner had in the past. They may have had a default or slow payment with with other lenders. We can help you deal with these issues and get you funded. Contact us at 919-771-4177.
TIP: Other big loan types and challenges companies face trying to get higher approval amounts to repair your Big Rig or Hot Shot truck, against your truck or vehicles, or against your trailer. Loans for hot shot and some hot shot start up options.
Get processed on weekends and in evening hours after 5. Have you ever been asked for a MTD month to date statement? We show you how to get it and also avoid being declined for problems with your current month such as the drop in deposits since the beginning of the month.
Are you afraid you will be declined and not want to apply maybe because your credit score is too low, or other reasons? Find out in advance the top 9 reasons why loans are declined and what types you can get approved for and close with a low score and other problems.
Articles on emergency money for payroll and product orders. Are your invoices being paid too slow? Learn how to speed up your invoice payments through factoring. Are you a new start up and you don’t have 3 months statements?
Many Corporations and Sole Proprietors have low or declining monthly deposits and low average balances.
Get funding for a current federal or state tax lien. Also learn what some States like California, Virginia, Florida, Utah, New York and others require four bank statements and the disclosures involved.
From unsecured cash flow loans like bank statement loans, line of credit style options, asset based loans on your equipment, trucks, big rigs, construction equipment.
To apply, click on the apply button at the bottom right of this screen, or on the end screen of this video, or call us at 919-771-4177 or go to bankstatementloan.com/. On YouTube, please subscribe, like and share.
VIDEO CLIP Below: Close: 144 Seconds – 300 Seconds in Clip below.
FAQ Frequently asked questions on large business loans. How can we qualify?
Revenues over $25000 per month and over 3 months may qualify for higher amounts. Higher deposit amounts and average balances per month qualify for bigger loans. For some programs higher credit scores or strong financials can increase approval amounts.
Do higher amounts take longer to close?
Closing within 24 hours or less in most cases. Certain longer term programs and amounts over $500,000 can take longer to approve.
What if we are new?
Strong sales in the first few months is enough.
Can we get funding from the same program again later?
Yes. Pay the balance down to 50% it can qualify for more funding right away. One program allows for new funds after 30 days of timely payments.
Will Real estate and other assets be required?
Real Estate is not required. Customers that offer real estate or other assets can get higher approval amounts. Close the maximum they qualify for without using real estate or any other assets.
Can we get a monthly repayment and a longer term?
Monthly and weekly repayments are available with longer terms of up to 60 months.
Many businesses need funding for over $500,000 or as high as $1,000,000 and higher.
Paying off a large Merchant Balance with a loan
You can take a merchant cash advance with a high or large balance and pay it off. Doing this can extend the term several months longer. A large merchant cash advance of over $100,000 or over $200,000 with less than 6 months left can be paid off and the term can be extended to 10 or 12 months. Terms up to 120 months may be available with same day and next day loans. Payoff your advance today!
Business owners say they have been declined because the amount they asked for was too high. They requested funding over $250,000 or more and were denied. Our programs are designed for higher dollar needs.
Callers call in and ask what they need to provide:
Use the following chart below to determine what you will need when submitting.
$50,000 to $100,000: Provide an application and last 3 months bank informa.
$100,000, $150,000 and $200,000: Provide an application and last 3 months checking account information.
$250,000 to $300,000: Submit an application, last 3 months checking account information and Year to date interim Profit and Loss (P & L)
$350,000, $400,000, $450,000 and $500,000: Submit an Application, last 4 Months checking account information, Year to date Profit and Loss and Balance Sheet.
$500,000, $600,000, $750,000, $1,000,000 and $1,500,000
$500,000, $750,000, and $1,000,000: Submit an application, last 6 months complete checking account statements. Provide the last 2 Years business Tax Returns.
$1,000,000, $2,000,000, $3,000,000, $4,000,000 and $5,000,000: Submit an application, last 12 months business checking account statements and last 3 years Tax returns.
Companies that have been denied by a lender because the amount of the request was too high will still try to get smaller amounts another way. Ask lenders upfront if they have a maximum loan amount and if they have different criteria for different dollar amounts. If so, what are they?
Because the lender has different lending criteria for higher loan requests, they may not provide you with the information. Ask these questions to help get approved and also avoid unnecessary denials.
Looking for alternatives to a cash flow option? Then watch our alternatives to an MCA here.
Show Video Transcript Details
In minutes and seconds.
0:00 Introduction
0:10 Step 1: Give the lender details
0:36 Step 2: Qualifying
0:47 Time in Business
0:54 Credit Score
1:06 Payment Terms: Weekly, Bi-weekly, Monthly, Daily
1:11 Preferred and Favored Companies
1:36 Restricted Industries
2:07 Step 3: Only Provide required info
2:24 Step 4: Closing: Problems and challenges
2:32 Closing Requirements: Stipulations
2:58 Declined? Do this
3:10 Background check
How to Get a Large Business Loan
Large business loans, big business loans, most lenders offer something small, or tell you no. [no] To apply, click on the apply button at the bottom right of this screen. So how to get a large business loan.
Step 1: Call the lender
that offers bigger loans and talk with someone that can make an assessment or a pre-approval. Tell them your company’s specific details. Type of business, annual or monthly revenues, deposits, time in business and credit. Are there clear reasons they might deny you? This helps you know where your business stands. Do you have a good chance? This avoids wasting time with unnecessary declines also.
Step 2: Qualifying:
What is it going to take to get the amount you need? Generally it includes annual revenues. Getting amounts more than your annual gross revenue is hard to qualify for. An amount up to that is easier.
Time in business. Short time in business such as less than a year can be approved. The longer the time in business the higher the amount. Credit score. High amounts can be approved with a low credit score, even below 600. The higher the score, the more you have a chance to qualify for.
Also, big business loans into the millions can be backed by real estate. Weekly, bi-weekly, daily or monthly payment options are available depending upon the program.
There are specialty low rate programs for preferred industries, like retail, restaurant, auto repair, beauty supply and spa, medical, dental, and chiropractors as well as hospitals and emergency care facilities, construction and manufacturing companies, factories, grocery and convenience stores, landscaping and landscape design companies. Hospitality, hotels and motels, assisted living and nursing homes, golf courses and resorts, cannabis dispensaries.
Is your business in an industry that is restricted and cannot easily get funding?
Find out what options are available for your business. Used car dealers, real estate, trucking companies, collection agencies, non profits, attorneys, religious organizations, and many other hard to fund types of businesses that have trouble finding options.
For larger bigger business loans, they also include construction companies and contractors, cleaning and maintenance companies, brokers, insurance, mortgage and financial brokers, staffing companies and temporary employment agencies, small and larger logistics and transportation companies.
Step 3:
when you apply only provide cash flow information that helps your request. Don’t send bank statements or other financial information that shows weak sales unless you are required to send it. Avoid sending information that was not requested. It may be interpreted in negative ways you did not realize in advance.
Step 4: Closing.
Should be an easy slam dunk? Lots of businesses get declined between the approval offer and the closing for funding. Examples include: Closing requirements also called stipulations that are reviewed as part of the closing process. They are low recent balances in the business, even overdrafts, NSF’s and overdrawn accounts.
This may happen in the current month that the lender does not know about and why they do a bank verification before closing. Proof of ownership or other financials such as information on other owners, more bank statements, or a tax return could be requested.
If your company is declined, ask what are the reasons and if you can fix it now or in the short term so you can get approved and close. Sometimes you can satisfy the denial reasons, still close and get the money wired to your account.
Finally, a background check will be completed. This can pull up previous businesses the owner had in the past. They may have had a default or slow payment with with other lenders. We can help you deal with these issues and get you funded.
Click or Tap on the apply button, or link in the description or
call us at 919-771-4177 or visit bankstatementloan.com.
We are a leading funding source for all Companies 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 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.
They are negative balances in a bank account by the end of the day and reported by your financial institution in their ending daily balance section of your statement.
Maybe you have had them because you have a 2nd MCA or even a 3rd Cash Advance? If so, get approval options, Apply Below.
How can your company overcome being declined for a loan or Merchant Cash Advance for having excessive Overdrafts or excessive NSFs? Here are several tips that your company can follow to get funding.
We assist your company in overcoming these obstacles so they can prosper.
Many times a loan that is approved falls through at the last minute and does not close if there are overdrafts and NSF’s before closing.
When an account verification is done and the Account is overdrawn, the loan may then not close and be declined.
At the time you are trying to close a loan with an overdrawn business account, make a deposit immediately before the Lender checks your account balance.
If you make a deposit beforehand, you can save the approval. If it is too late and the loan is declined, ask the funding source if you can make a deposit to bring the account into the positive will they close the Loan then?
Do not try to close a loan if your account is overdrawn. Wait until it is in the positive.
FAQ Too many overdrafts and nsfs
Can we get funding with nsfs and overdrafts?
Approvals are issued everyday to businesses with nsfs and overdrafts in their checking account. Still, provide a good explanation for why the account was overdrawn when asked.
How hard will overdrafts and nfs make it to get a business loan?
They do not always cause a decline. You may get approved for a lower amount with higher rates and shorter terms.
Being overdrawn in your business checking account in the last 30 days is most important, and the last 90 days are reviewed. Rules on the maximum number vary by Lender.
How many overdrafts and nsfs can we have?
Most business loans limit these to about 5 per month. Ask specifically for any financing you may apply for. Some programs will not allow more than 3 recent overdrafts in the last 30 days.
Why were we declined for paid nsfs?
You were likely declined because the cash flow and average balances were not strong enough. Even when insufficient fund items are paid, they still happened and the funding source may believe any new debt will be too much.
Talk to lenders in advance and find out if they have a maximum number per month they accept. We can put your business into qualifying programs so your business can get all the Capital it needs.
Business Loans with Overdrafts and NSF’s
Other options if declined
Too many Overdrafts or NSF’s for an MCA merchant cash advance or ACH bank loan.
Talk to the Merchant Cash Advance companies and ACH business loan lenders directly about being declined for having too many Overdrafts or NSF’s per month. Ask them if there are other programs available you may qualify for right now. Always ask if you can start out for a lower amount.
In addition, make sure your Account is not overdrawn for a few weeks and apply at the start of the next statement month.
Possible solution:
If you know you will not be overdrawn or have NSF’s in the next few weeks, tell the Lender.
If the overdrafts or NSF’s were from a single event instead of spread out throughout the months, this can make a difference. It is an isolated incident.
Let them know the NSF’s resulted from a one time event. Many decisions are automated and made quickly. Make a strong case and the lender may reconsider your request.
If you still cannot get an offer, ask how long you have to wait before your application can be reconsidered. It is usually 30 days. Ask what needs to be corrected to avoid being declined again.
Get other working capital loans
Your business can apply for other types of financing if time is critical. Which ones are best depend on your company’s financing needs and situation. Choices include:
Also consider financing based on Real Estate, Equipment Assets
that are free and clear, and Account Receivables.
Monthly Term loans up to 60 months or longer with full financials.
You can overcome being declined for a MCA Merchant Cash Advance for having too many Overdrafts and NSF’s. The SBA small business administration offers advice and workshops.
We are a leading funding source for all Companies looking for the best alternatives to traditional institutions.
Author Biography:Will Sanio, Owner of SCF Funding, dba bankstatementloan.com, has a Bachelor of Science Degree in BA with a concentration in Finance from the University of Tennessee, Knoxville.
Over 20 Years experience including 10 Years with Wells Fargo, formerly Wachovia and First Atlanta. 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.
Has your business been declined for a loan for not making enough deposits into your checking account every month, or having under $10,000 a month in deposits?
Get approved and choose one of severalsmall business loans for your business that do not require a lot of deposits per month. Apply below and get approved today.
Contact us and we will put your business into the approval program that can accept less than 5 deposits per month. Only have 1 or 2 deposits per month? We have programs waiting for your business now that can you approved fast. Contact us above!
FAQ on being declined for a business loan for not having enough deposits
How many deposits does our business have to make each month to qualify?
5 deposits or more per month are usually required for a merchant cash advance. Some advance companies require as many as 10 or more. They must be real business revenue from customer sales and not transfers between accounts.
Can our business qualify with only 2 or 3 deposits per month?
Some lenders consider a low number of credits per month into a business account as higher risk because the business has fewer customers that it makes money from. Losing one customer will cut revenues and their ability to repay a loan much more than a business with many customers.
Why were we declined for not enough business deposits when we had more than 5 per month?
Deposits that are not from the sales of the business may not have qualified as revenue. Examples are transfers from other accounts, loan proceeds, very small deposits compared to others, and rebates.
Businesses have used cash flow loans to a great extent in recent years to finance their businesses. The business account has low recent sales in one of the most recent months.
Our Small Business Development Center assists in getting past these problems to help business owners get a fast and easy business loan.
Other options
Make more deposits immediately during the rest of the month and apply at the start of the next month. A deposit to a business checking account statement is often from several customers. Retailers usually have several checks and cash from several customers, go to the bank and make 1 deposit. Instead of 1 large deposit, break the deposit into several smaller deposits over the course of 2 or 3 days.
Talk to the Merchant Cash Advance companies and ACH business loan lenders directly about being declined and ask them how you can get your business approved. As your business grows, it will add more customers. Having deposits from more customers will increase the number of deposits per month into your business account. As a result, this will make your business a better risk from the lender’s point of view. The number of customers a business has is an important part of looking at risk by lenders.
For example, restaurants have hundreds of customers per week. As a result, they will show many deposits per month. Restaurants that lose a few customers only lose a small percent of their customer base. A business that has 4 large customers loses 25% of their customer base when they lose just 1 of their customers.
Possible solution:
If you know the deposits you make into your business checking account have multiple items, you can tell the Merchant Cash Advance company or ACH business loan company.
What are multiple items?
Multiple items means that the funds in the deposit are from more than 1 customer. If the merchant cash advance company knows this, you can get a copy of the deposit from the bank. The copy of the deposit will show the items deposited. If it is 5 items, you may get credit for 5 deposits instead of 1. You may be able to get the MCA company to change the decline to an approval. A number of ACH lenders and merchant cash advance companies are open to this.
If this does not work, ask how long you have to wait before they will consider you again. Be clear on what they want to see the next time so you will not be declined again.
Get working capital through other loans
If the options above do not work or you cannot wait, your business can consider other types of business loans. Which ones are best depend mostly on your company’s profile. Choices include:
– Monthly Term loans up to 48 months based on Tax Returns
– Accounts Receivables Financing
– Business loans based based on Real Estate or Equipment Assets.
Business loans based on real estate, equipment or accounts receivables will usually not have this requirement. Having collateral that covers the loan amount means that cash flow is not as critical. The number of customers is also not important.
Unsecured loans depend heavily on cash flow and as a result, the cash flow of the business is scrutinized much more. Businesses applying for unsecured loans should also have financial statements that show the business making money and having net income. Many businesses do not show net income and this hurts their request and also causes declines.
The SBA small business administration also has excellent resources on alternative business loans
Merchants that stack multiple short term cash advances are getting and paying on multiple MCA’s at the same time. This includes getting a second or even a 3rd cash advance. Consolidate or Pay them off.
Need emergency rescue from stacked merchant cash advances? Complete fast online app or click on image
FAQ Frequently asked questions about stacking merchant cash advances
What is stacking?
Stacking is when a merchant gets more than 1 MCA at the same time. Businesses sometimes need more money and can get a 2nd or 3rd position.
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Is stacking merchant cash advances legal?
It is legal for a company to take out multiple MCA’s. Some funders prohibit you in their contract from taking out any additional loans but State and federal laws do not prevent it.
Can my business take out another loan if we already have several?
You can take out another loan even if you already have existing MCA’s.
Can we get funding from two different places?
Your company can get a loan from two different lenders. We can approve you for funding even if you have MCA’s with another company.
How can my business get out of stacked MCA’s?
You can pay them off through a new transaction, such as a consolidation. This eliminates current debts and avoids past dues and defaults.
Can I consolidate them into a longer term?
We can assist in consolidating and reducing stacked daily payments between 35% to 75%. If you currently pay $1,000 per month, they can be lowered down to $500 or less without defaulting or damaging your credit or standing.
First understand what counts as an existing mca position.
Then get a 2nd position cash advance or a 3rd position mca advance IF your company can handle it and did not get enough funding from the 1st MCA.
Need saving from merchant cash advances? Programs now to get out of multiple loans and save your business.
Get a consolidation loan to payoff.
Through a consolidation loan for instance, the daily debit payment is lowered and term extended.
How can my business be approved for a consolidation?
We can help in consolidating mca’s. We can give you criteria over the phone. If you and the lender agree you have a strong chance of qualifying, consider applying for the consolidation.
Example of too many stacked cash advances:
A company obtains a first position Merchant Cash Advance, then a 2nd one after the 1st one. The second (2nd) position is stacked on top of the first. Then they get a third. The third (3rd) is now behind the first and second position.
The company’s income is too restricted because it may not be able to handle other critical business expenses. For instance, there may not be funds left for advertising, product development and expansion plans it has.
Stacking Example
Below is an example of how consolidating a stacked merchant works. The required multiple daily payments that are now being debited from your company checking account take away from critical marketing, inventory, and even being able to meet payroll.
Acme, Inc. decided to stack MCA’s and has 2 so far.
# 1 current balance $10,000 @ $100 per day.
# 2 current balance $10,000 @ $100 per day.
This merchant has 100 days left on these 2. They are costing them $1,000 per week and about $4,000 per month.
On a typical consolidation, they will lower their daily debit by about 50%, going from $200 to $100. This lowers their monthly cost from $4,000 to $2,000 and saves them $2,000 per month. Sometimes the savings is even more.
Negotiate to lower the daily payments
How do you negotiate with to lower the daily payments?
Each lender may have a different policy on negotiating a reduction. The Lender will consider your specific situation, and how the request is handled by the borrower.
Review the basic conditions of each funder because funding source has stipulations in the contract you may violate. The stipulations may say the borrower cannot obtain any more funding until their contract is paid off. This is an example of how you may have already violated the terms of the contract.
As a result, the lender may have the option of declaring a default. For instance, they may require or demand full payoff of the remaining balance immediately. So review the contract carefully before contacting the lender.
Ask for a lower daily payment
Contact the lender and let them know you cannot handle the daily payment. Ask to get a reduction so you can continue paying as agreed. You will be asked questions and may have to complete paperwork.
Ask for a Pause.
If your company is going through a brief slow period, it may be better to ask for a pause in the payments for a week or two. Funders are less restrictive on pausing debits than they are on lowering them.
Pay them off with other loans
If the problem of multiple loans cannot be solved through a consolidation or negotiation with the lender, another solution is to pay them off because that will fully solve your problem. For example, some other types of funding are:
– Asset based loan. Money from this option can be used on Real Estate, Equipment, or both.
– Accounts receivables financing.
Merchants can use the proceeds from one of these other options to payoff your existing short term debt. Also, you may be able to extend the number of months up to 24 or 36. This can dramatically improve your monthly cash flow.
Conclusion
Use these business strategies and tips for the best ways to lower your daily merchant payments.
The SBA has tips, suggestions and hints to help merchants find solutions to financial problems as well as how to create business plans and other statements that may be requested for any type of financing transaction.
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 have loans available for flexible and restricted industries that most lenders do not want to work with.
They are for many industries that have difficulty with regular financing. Trouble getting financing? What are some Easy ways to get funding for your company? If you need business funding in Canada, get funding now.
Restricted Industries: Get Approvals!
How to Apply
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Don’t spend your time with lenders who tell you that they think you are a restricted type of operation. Call us today for financing. Call us at 919-771-4177 or go to bankstatementloan.com/. On you tube, please subscribe, like and share.
It is when your operation type is considered risky and undesirable by finance companies such as a loans for used car dealers.
Other companies such as cannabis, adult or porn, attorneys, financial services such as check cashing are restricted from doing business with you, and investors do not even want to lend to you.
Work with a partner that values your relationship and does not see you as restricted!
Call 919-771-4177
Fast and easy programs. The highest approvals with best terms available, including new programs in trucking such as a truck repair loan to fix your vehicles. Also find out if you might be considered a HIGH RISK ?
Let others say no. We say YES! Apply Below now & get funding today!
Use the lists provided below to determine if your type may be considered restricted by others.
Identify investors and sources that will provide a restricted industry business loan to your sector.Contact them and ask for their qualifying criteria. Select the best match based on your needs and their approval criteria.
If approved, request and review closing stipulations and documents. Submit all required closing documentation. Complete merchant call if required.
Receive funds into your checking account.
Find a loan product here regardless of industry type.
Restricted industries or elevated scrutiny businesses – Types:
“Restricted Industry List”
Accountants, Accounting firms, Accounts Receivables Factoring.
Adult Entertainment, Escort Services, Gentleman's Club, and adult industries.
National and Regional Airlines.
Attorneys
ATV Dealers, ATV Sellers and RV Dealers.
Auto and Home Supply Stores.
New Auto Dealerships and used car lots and dealerships.
Auction Houses.
Bitcoin.
Bus Companies.
Construction.
Cemeteries and Funeral Homes.
Consignment Stores, Child Day Care, and Churches.
Collection Agencies, Check Cashing, and Bail Bonds.
Credit Reporting, Protection and Restoration.
Consulting.
Collection Agencies, currency exchanges, and Wire Transfer.
Criminal conviction, arrests by owner. This may include past
misdemeanors or a felony offense.
Dating and Escort Services.
Debt Consolidation.
More Examples:
Direct Mail.
E-businesses and Commerce.
Educational, Colleges and Schools.
Factoring, Financial Institutions, Financial Transactions Firearms sales, weapon sales
Financial services and lending
Financial Transaction Processing, Financial Advisors and Freight Forwarding Forwarders.
Fitness and Recreational Facilities.
Fraternities and Sororities.
Freight Brokers.
Gambling and Gaming Establishments.
Gas Stations.
Holding Companies, Insurance Agencies, and Investments.
Home Building, construction, and housing related.
Home based.
Horoscope and Fortune Telling.
Import and Export.
Income tax return and preparation.
Insurance Agents and insurance brokers.
Internet and online
Insurance Agencies, and Investment Opportunities.
Lawyers.
Lotteries and raffles
Further Examples:
Kiosks. Lawyer and lawyers. Attorney and Attorneys. Legal practice and Legal Practices. Marinas. Mining and Quarrying. Magazine Subscriptions, Mail Order Coin Sales, Mobile Home Dealers, Mobile Phone Dealers, Wireless Stores and Cellular Stores. Mortgage Lenders and Mortgage Reduction. Motorcycle, Scooter, Motor Home and Camper Dealerships. Night Clubs. Non Profit and Grant Writers. Non Bank Cash Advance. Oil Pipelines and Gas fields. Online Stores, Online Retail Stores, Online Merchants, and Online sales. Payroll advance, Pawn Shops, Thrift Stores and Consignment Stores. Personal Trainers. Precious Metal Sales and Coin Sales. Printing and Printers. Real Estate Management, Investment, and Brokers. Recreational Vehicle Sales.
Restricted types continued:
Schools.
Sports Events Advice, Sports Instruction and Recreation Instruction.
State Agencies and Government Agencies.
Taxi and limousine service.
Ticket Brokers, Time Share Investments and Tour Guides.
Travel Agencies and discount clubs.
Tobacco and Electronic Cigarettes, Firearms and Gun Stores.
Trucking, Transportation, Logistics, and Sea Transportation.
Used Car dealers, Auto Dealers, new car dealers and Truck Dealers.
Used Furniture Stores and Furniture Retailers.
Vehicle Inspection.
Virtual Auction Houses.
Vitamin Retailers.
Wholesale Clothing.
Wireless phone and accessories.
Elevated Scrutiny Industries
Other sectors are included in "elevated scrutiny".
Home health care.
Web development, Credit and debt counseling. Financial advisors and consultants.
Elevated Scrutiny often includes:
Annual Membership Clubs.
Appraisal Services.
Auction Houses.
Benefit Packages.
Boat Sales.
Buyers Club and Coupon Books.
Detective and Private Investigation.
Donation. Door to Door Sales.
Employment Agencies.
More elevated scrutiny industries:
Financial Aid Services.
Flooring, Tile, Blinds and Windows.
Formal wear.
Fortune Tellers, Psychics, Astrologers and Spiritual advisors.
Furniture Stores, Homeopathic Remedies and drugs insurance.
Modeling Agencies and Beauty Pageant Organizations.
Mortgage Lender or Mortgage lenders
Multilevel Marketing and Pyramid Sales.
Online Electronic, High Ticket Electronics, Prepaid Phone Card and seminars.
Sports Memorabilia.
Telemarketing, Ticket Agencies, Time Share.
Web Design and Hosting.
Utilities.
Seasonal and challenged industries
Challenged industries are similar to those that get elevated scrutiny. Underwriting will consider them, but under a tougher approval process because of what they do.
Construction Companies:
Lenders often have many restrictions and high scrutiny for construction. They are either automatically declined or are offered lower amounts with shorter terms.
Insurance Companies and others:
Insurance is hard to get funding for because they receive commissions for policies sold but then the have to pay agents who sold the policy.
Another example is a travel agency which also keeps a small percentage of what they receive and pays out the rest.
Convenience stores that sell gasoline often have to immediately pay back out a high percent of those sales. As a result, most of the revenue they show coming into their account goes right back out.
Lenders have to make a decision and approval amounts based on their net income.
Seasonal Companies
What is a Seasonal Business?
Any company that has peak sales and operations during the same months every year.
The rest of the year they are either slow or closed.
Lenders ask for more documentation.
Examples of Seasonal include:
Accountants and Tax Preparation Services.
Bridal Wear, Catering Halls and Floral.
Moving and relocation.
Jewelry, Shipping, Golf Courses and Ski Resorts. Other seasonal operations are nurseries, ice cream shops and amusement parks.
Used Car sales are almost restricted and we are able to assist them.
Getting funding in a restricted category
Businesses that have been denied for the type of operations they have must find a reliable partner. Ask upfront if they work with you and consider a loan.
Preferred Merchant List
Also known as Favored Industries.
If the investor has categories like this, they usually don’t want to tell you. Ask what type of loans they like to do. These questions will point you in the right direction and avoid unnecessary declines!
FAQ Frequently asked questions.
How do I know if my business is considered restricted by lenders or not?
Ask before applying if they have programs available for your type of operation, because sometimes they don’t want to tell you. Our loan programs lend to all sectors.
What does restricted industry mean?
A business whose type of operation has much stricter rules for approval.
Other lenders stay out of it because they see it as a higher risk for delinquency, defaults and losses. Sometimes they just don’t have expertise in that field.
What do challenged and prohibited industries mean?
These are industries lenders will scrutinize much more and require a longer time in business, higher credit scores and revenues.
Used car lots, construction, and trucking are examples. Ask if they have any limitations on lending based on your type of company.
Are new companies restricted by lenders?
Many loan companies do not loan to start ups. Our programs work with 3 months in operation and longer.
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 headquartered in Winston-Salem, North Carolina, 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.
Weekly and monthly payment business loans are now easier to qualify for with more choices and approvals. Fast and easy same day or next day funding on mca merchant cash advances.
Businesses are approved mostly on total deposits each month and the average daily balance in their account. They can consolidate their short term advances and repay weekly or monthly. Apply Below Now!
Frequently asked questions – FAQ: Weekly and monthly payment business loans:
Do I qualify?
Sales over $4,000 per month, 3 months time in business, and credit scores over 600 may qualify. Higher average bank balances and limited overdrafts and nfs also help. The higher any of these are, the more they can qualify for.
What are the terms and rates?
Rates start at upper single digits and higher. The stronger the customer profile, the lower the rates. More challenging profiles can qualify with higher rates.
How much can we get?
Amounts depend on your annual sales, time in business, credit and more. In general, approvals are a 35% to 100% ratio of annual sales. Annual sales of $250,000 may qualify for $25,000 to $100,000. Amounts may be higher or lower depending on other factors.
How fast can we close?
Closing can the same day or next day. Larger amounts for lower rate programs can take longer.
What credit or collateral do we need?
Credit scores 600 and above for weekly and monthly payments. Higher credit scores bring higher approval amounts and lower terms. Scores below 600 may still qualify depending on the cash flow and overall customer profile.
Do you loan to my type of business?
Programs are available for all industries. State and industry restrictions may apply to some plans. List the industry type when applying, or call before to discuss.
In the past, only a daily repayment option was available. A Merchant’s cash flow was under pressure to meet that daily payment.
Because of that daily stress, customers have been calling in and specifically requesting weekly and monthly approvals.
They also ask for consolidation of their short term loans. Most requests are to consolidate merchant cash advances into one longer term business loan.
Recent Case Request
A Timber company in the Southeast wanted a Weekly or Monthly payment for working capital. They were denied. The reason?
In addition to their credit score being too low, they already had 3 current advances.
If a business already has 2 or 3 Advances, it will be hard for them to get any additional financing that has a Monthly or Weekly payment.
It is considered too risky by underwriting. Daily debits have a very high monthly total the customer has to repay. Monthly payments behind 2 daily are never approved.
The most common requests are cash flow emergencies or to payoff short term advances. Merchants often say they cannot handle the advances anymore and must get a longer term. They cannot get out of their daily contracts on their own and need help.
Payment Examples
If a merchant was approved for a $50,000 advance with a 12 month repay at a 1.33 rate factor, the daily repayment would be $263 per day.
With a monthly or weekly merchant advance, the repayment is as follows below:
$1,385 Weekly repayment
$5,541 Monthly repayment
Merchants still have to be able to handle the total debt repayment. Once qualified for weekly or monthly payments, they don’t have to worry each day about making the next day’s payment.
This lowers the pressure. It also eliminates the chance each day of a rejected payment and NSF insufficient funds. Merchants won’t get way behind in only a few days.
Qualification Requirements
To qualify for the weekly and monthly repayment options, a longer time in business and more consistent cash flow is required.
Seasonal companies that have inconsistent cash flow and open for less than 1 year may only qualify for the daily or weekly program. For those merchants, the once per day debit lowers the difficulty of making a large payment at the end of each week or month.
Many companies have good overall monthly cash flow, but low cash flow days during the month. A monthly payment allows them to meet their repayment terms.
Different MCA repayment terms
Weekly or monthly ACH repayment option are easily calculated.
Example: A business is approved for a $100,000 “short term advance” for 12 months. The rate factor is 1.27. The daily repayment is $504 (127,000 % 252). The weekly and monthly repayment is calculated below.
Weekly repayment is $504 X 5.25 = $2,646. The monthly repayment is $2,646 X 4 = $10,584. The total repayment is $10,584 x 12 = $127,008.
Customers can look at the daily, weekly and monthly repayment terms to determine which one will work best for them. Merchants call in frequently asking only for a monthly option.
Get approved and pick the best program from those.
Other sources of information include the SBA small business administration
Businesses can get a business bank statement loan based on their deposits. Since almost all businesses have sales, almost all businesses pre qualify. The funds can be used for any reason, including marketing, advertising, inventory, expansion, additional employees, cash flow, new product lines, or taxes. How to get this financing . Steps and tips on what to look for as well as getting approved and closing.
Businesses provide their last 3 months business checking account statements and a simple one page application. If the Gross sales figure is significant, the approved amount will often be higher. Repayment terms for this product are 2 to 18 months.
How can my business get a loan using bank statements?
Features and Benefits:
– Only 4 to 5 Deposits per month are needed in most cases.
– Monthly deposit totals as low as under $10,000 a month may qualify.
– No Site inspection for most clients.
– Renewals often possible once balance is 40% to 50% paid off.
What is needed for approval?
– Most recent 3 months complete business checking account statements
– Signed and dated within last 30 days application.
What is needed for closing?
– Completed closing docs.
– Copy of driver’s license
– Copy of voided check. Specifically, this is a copy of a voided business check.
– Other requirements may apply.
Funding amounts of up to $500,000 can be obtained. Up to 125% of the total dollar amount of monthly deposits can be approved. For example, if the customer deposits $50,000 per month, a maximum of $62,500 can be approved. Approval time is 24 to 72 hours. In most cases, businesses are approved for 25% up to 100% of their total average deposits of the last 3 months. As an example, if a business deposits and average of $40,000 per month, they will most often be approved between $15,000 to $40,000.
Approvals can be higher with a higher average daily business checking balance. If the customer has more than one business account, then both account statement can be provided. 2 lines may be approved. If your business is seasonal, then the last 12 months account statements can be provided. This will strengthen the request.
For example, a construction business is often a seasonal business with at least 2 or 3 months in the winter being low volume months. Rather than receiving a lower approval amount due to this, simply provide the last 12 months, which will include the higher volume months.
Required to qualify or pre-qualify.
– Signed and dated application from 50% of ownership.
– Last 3 months complete business bank statements from main business operating
account.
– For amounts over $150,000: The most recent 6 months business bank statements
and first page of the most recent business tax return.
Required for Loan Contracts:
Valid and clear driver’s license.
Voided business check for approved account.
Valid E-Mail address for owners.
Federal Tax ID number, or TIN.
Other requirements may apply on a case by case basis.
Other benefits:
– Renewal options may start at 40% pay down of balance.
– No standard site inspection in most cases.
– Tax Liens up to $100,000 may be accepted.
– Bankruptcies 6 months or more O.K.
– Only 50% ownership required in many cases.
A Dental practice in Lakeland Florida needed some expansion capital. Due to the recent time in business and some past credit issues, the company wished to use their strong Gross Sales.
The company provided their most recent 3 months business checking account statements. A one page application was submitted. Within 24 hours, they were approved for a $40,000 business bank statement loan. They chose a repayment term and original documents were E-Mailed. The customer returned the completed documents.
A simple verbal verification was completed with the customer. Following the verbal, the funds were wired directly into the customers account within 24 hours. The customer had access to the funds and was able to pay a contractor to begin expansion and remodeling of a section of their practice immediately.
Features of this business bank statement loan product include:
Low credit score acceptable. Credit scores as low as 400 may be accepted.
No application fees or advance payment fees.
Unsecured transaction. No collateral is required.
There are no restrictions on how the funds are used.
Fast and Easy application process.
The entire process takes approximately 5 business days.
Difficult transactions handled routinely.
What are common decline reasons that you may be able to approve?
– 5 or more overdrafts or NSF’s per month.
– Less than $7,500 per month in revenues.
– Less than 2 Months in business
What are the primary factors that are looked at for this business bank statement loan?
Average daily balance. The average daily balance is considered. Lines begin with an average daily balance starting at $3,000. The higher the average daily balance, the higher the approved amount will tend to be.
Number and dollar amount of Monthly deposits. A minimum average of 5 deposits per month are requested. The higher the dollar amount of the average monthly deposit, the higher the approved amount. Approvals are up to 125% of the average monthly deposits.
Beginning bank balances. The balance at the beginning of the month is reviewed for each of the six months. The amount of the beginning balance is not critical. Many businesses have some of their largest monthly expenses at the end of the month. These include monthly business office rental payments, business mortgage payments and other payments. After payments such as these, the beginning balance at the first of the month may be lower.
Additional Factors
Ending bank balances – The balance at the end of the month is also reviewed. For reasons similar to the reasons above for reviewing the beginning bank balances, the ending balance is assessed. Many businesses have large expenses at the end of the month, including many automatic debit payments.
Insufficient funds and overdrafts. The statements are reviewed for the total number of overdrafts and insufficient funds per month. A company can have some insufficient funds and overdraft events per month. The statements are reviewed to make sure that the numbers are not excessive per month.A customer wishes to obtain a higher approval amount. What can they do? Provide strong Financials. What are strong financials?
Gross income. Gross income figures should be increasing from any one year to the next. This includes Profit and Loss statements. If the Gross income figure decreases from one year to the next, this is considered a negative and will hurt the request.
Net income. The Net income figures should be flat or increasing from year to year. Net income figures should be $25,000 or higher. Lenders will question the ability to repay if net income figures are too low.
Thank your for visiting our resource page!
The SBA offers assistance with business plans and putting together financial statements.
