August 20, 2017. Loan using Bank Statements.
Definition of Loan using Bank Statements:
Small Business Loans Depot offers a loan using bank statements or the often requested “loan based on bank statements” through a company’s Gross Sales. Every company has sales, so almost all companies can qualify.
Many callers call in and request a “loan using bank statements” or a “business loan using bank statements”. To get started on this financing, companies provide their most recent 3 months business checking account statements and just a 1 page application.
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- Our Loan using Bank Statements can be used by a business to get up to $250,000 working capital, and as much as $500,000 in some cases.
- The funding can be used for any purpose the business needs.
- Applying is fast and easy. The entire process takes approximately 3 to 7 business days.
- This product has no upfront application fees.
Ask about our Flex payment or Flexible payment product. In this product, the business ACH loan has a variable payment. It is not a Fixed payment. Example:
A business is approved for $25,000 with a 6 month term and a $100 daily payment. With other programs, the business has to repay $100 every business day even if sales are slow or if sales are higher than normal.
With the Flex payment program, if the customer’s deposits drop 25% one day, then the daily debit is $75. If the deposits increase 50%, then the daily debit is $125. This program has a great advantage for customers. If their sales are slow, they won’t have a higher burden to make the payment. If their sales increase, they will still have the same percentage taken out and will repay the funding sooner.
A business can get up to 125% of it’s monthly deposits with this program. The customer’s beginning bank statement balances, ending balances, amount of monthly deposits and average daily balances are looked at to determine the approval amount and terms. The repayment term is between 2-18 months.
If a customer has more than one active business checking account with significant balances, then the statements for all accounts should be used. To maximize the approval for a loan using bank statements, using the statements for all accounts will bring the maximum approval. The minimum time in business is 4 months for the start up program.
Your business should provide it’s first 3 months statements to try to qualify for the start up program.
– Just 4 Deposits per month required in many cases.
– No Site inspection for qualifying deals.
– Renewals may be available once balance is 40% to 50% paid off
What is required to submit for an approval?
– Most recent 3 months complete business checking account statements
– Signed and dated application.
What is required for closing?
– Copy of voided check. Specifically, this is a copy of a voided business check.
– Copy of driver’s license.
– Landlord contact information.
– Other requirements may apply.
Required to pre-qualify or qualify:
– Signed and dated application from at least 50% of company ownership.
– Last three months complete business bank statements from the main business
– For amounts over $150,000: The most recent six months complete business bank statements and the 1st page of the most recent business tax return.
Required for Loan Contracts to be sent:
– Clear copy of driver’s license.
– Copy of a voided business check off of the approved account.
– Valid E-Mail address for the owners of the company.
– Federal Tax ID number, or TIN.
– Other requirements may apply.
Other business bank statement loan customer benefits:
– Renewals and renewal options often begin at 40% pay down of balance.
– No standard site inspection is performed or required for many customers.
– Bankruptcies older than 1 Year are usually acceptable.
– Only 50% ownership needed in some cases.
Coastline Fabrication takes out $75,000 loan using bank statements. The company needs working capital at some times during the years between invoices receivables. In addition, the company wanted to expand into the Amusement park and convention sectors. The company wanted to further specialize in video game conferences that use custom made arrangements for it’s gamers. President Bobby Snider made the financing announcement to Senior management at a quarterly meeting. “With this line we will expand our niche services into offering custom manufacturing to the Amusement Park and Convention industry sectors. Our specialty in custom work is a unique fit for these industries. We look forward to adding new customer in these fields. We will add new sales staff and add new marketing in these areas. We will also expand our current state contract work. Coastline Fabrication will become a leader in these niche manufacturing and fabrication industries. We look forward to continuing and expanding our financing relationship with smallbusinessloansdepot.com.
Ft. Worth Medical Supply needed $100,000 for inventory. They completed the 1 page application and provided their October, November & December Business checking account statement. The company had consistent deposits and were approved for a $100,000 line. The customer agreed to the terms and closing documents were E-Mailed to them. They completed and returned the docs. The documents were reviewed for accuracy.
A final verbal verification was completed over the phone with the President of the company. Funds were wired into the customer’s business checking account within 1 business day. The repayment began the next business day.
If a customer’s sales increase in the 6 months to year after the line is established, the line size may be increased very significantly due to both the increase in revenues and satisfactory repayment.
As previously stated, other issues that are looked at for the Loan using Bank Statements program include average balances, amount of deposits per month, number of deposits per month, beginning balances, ending balances, and overdrafts and NSF’s.
Question: How much time does the process take and how long does it take to receive the funding?
Answer: The decision process takes approximately 24 to 72 hours. Upon an approval, the customer receives the loan documents the same day or the next day. Once the customer returns the completed documents via Fax or overnight, the loan documents are reviewed. Once the accuracy of the documents are confirmed, a verbal verification is done with the customer and funds are wired to the customer with in 24 to 48 hours. The entire process takes about 5 to 8 business days.
Thank your for visiting our Loan using Bank Statements resource page!