Category Archives: Cash Flow Loan

For a Cash Flow Loan, Small Business Loan Depot offers a unique cash flow loan based on the company’s gross sales. Since all business have sales, this allows almost all businesses to have an opportunity to qualify for a cash flow loan. Go to our features and benefits section to learn how you can solve your businesses cash flow needs. Call us at 919-771-4177 or Toll Free: 855-787-1113. While speaking with one of our specialists that have over 20 years + experience at Wells Fargo and Wachovia, they will help you find and understand which of our solutions will put your company on a better cash flow path today.

For this cash flow loan, businesses can use just their every day sales already on the books. Call today Toll Free at: 855-787-1113, or click on the “Contact Us” link in the menu bar above.

Businesses owners ask if they have significant cash flow and have demonstrated a lengthy past history of being able to amortize a long term debt, then why should they be denied based on limited collateral or unsatisfactory personal credit while have satisfactory business cash flow? Small business loans depot agrees and can provide a cash flow loan to your business today! If your business has the cash flow, we can assist you in getting money, quickly and easily.

The Cash Flow loan features:
- Tough credit? NO problem – program available for your credit profile
- Among the best qualification % of any business financing!!
- Every business has Cash flow, so every business has a strong chance to qualify
- Provide just the most recent 3 months business bank account statements
- One page application
- Quick turnaround, a one or two day approval time is very common
- Very high approval rates
- Use this cash flow loan to obtain $10,000 to $100,000 quickly and easily for
any purpose, such as business expansion, advertising, inventory needs,
adding additional employees, new lines of business – any purpose.
- Very difficult transactions done routinely
- Your request is handled by an experienced consultant.

Complete the “Contact Us” Mini App on the menu above, or call Toll Free: 855-787-1113. Your call is free and an experienced industry professional will guide you seamlessly through the process.

The time in business required for this cash flow loan is 9 months. Once the time in business is 1 year or more, higher loan amounts can be approved. Credit scores can be as low as 500 and deposit dollar totals can be as low as $10,000 per month and 5 deposits per month. This is a relationship product and the initial approved limits are increased rapidly as this line of credit style product is reused. Businesses are able to obtain more funding through this method than with a traditional loan. If a business is approved for a traditional loan for $50,000 for 36 months, then they can get far more in working capital through this cash flow loan. With this product, if the customer is approved for $25,000 for a 6 month term all they have to do is renew every 6 months and they would end up with a total of $150,000 over the entire 36 months, which is 3 times what they would have received with the other traditional financing.

Credit score requirements for the cash flow loan are approximately 500 and higher in many instances. As the credit score increases, funding amounts will increase and the terms will improve

Call us at Tel: 919-771-4177 or Toll Free: 877-787-1113 and use your regular monthly sales to get a cash flow loan today.

Frequently asked Questions:
Question: Do we qualify? Answer: If your business has cash flow, has been in business for at least 9 months with the same owner, your business has an excellent chance to qualify for $5,000 to $150,000 depending upon that Cash Flow
Question: Do I need to complete a lot of paperwork? Answer: No. You will only need a one page application and the most recent 3 months business checking account statements. In many cases, only the most recent one month’s business checking account statement is required.
Question: What can I do if I need more working capital again later? Do I have to re apply from scratch all over again? Answer: No. Once the line has been established, you are an existing customer with us, the type that we value the most. You will have a very easy time using the credit line over and over again. In most cases, you either only need to place a call to authorize more funding, or simply provide the most recent statements to qualify for another round of this cash flow loan.
Question: What if I have bad credit?
Answer: The approval is driven very heavily on the cash flow. Even if you have difficult credit, it is the cash flow of your business that will be the main factor in the approval of the line.
Question: What do you look at in the cash flow?
Answer: The monthly raw dollar amount of deposits, the number of deposits per month, and the average daily balance. The higher the average daily balance, and the more that is deposited per month, the higher the approval amount will be. The most recent three months will be looked at. If the cash flow trend is upward, a higher dollar amount cash flow loan will likely be approved compared to flat or declining monthly dollar figures.
Question: I had a recent bankruptcy in the last 2 years, does that disqualify me?
Answer: Not necessarily. It depends on how recent the bankruptcy was and how the cash flow has been since then. If the Bankruptcy is at least a few months old and the cash flow since that time has been strong, there is an opportunity for a line to be established.

More cash flow loan resources:

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How changing a business name can be a disadvantage for financing

There are many reasons why a business may decide they want to change the company name.  Sometimes the reasons are due to expansion, for good reasons, and also for not so good reasons, such as solving an image problem by finding a new name.  An example of large Corporate name change for a bad reason could be Valujet.    Valujet suffered a major crash in the Florida Everglades in the late 1990′s and primarily for this reason, changed their name to Airtran.

When it comes to financing, a name change is not a good idea and should be avoided.   Even if the business can provide evidence it is the same company and only the name was changed, this explanation has always been looked at warily by lenders.   To lenders, a name change is looked at as almost a new business, or at least to a large extent, a new business, whether it is or not.

This hurts significantly in a financing request because if a company has been in business for 7 years, and changes the name in the last 2, it will almost look to a lender like the business is 2 years old.    Another factor in how the business is looked at is what the business credit report says.   If the business credit reports have the old company name, this will hurt.  If the business credit reports have the new company name and the business start date shows the full 9 years in business, this scenario will be penalized far less severely.

One answer would be to only somewhat change the business name, if possible.   For instance, if the company name is Alley Pizza, it would be better to change to Back Alley Pizza or Alley lane Pizza rather than Jim’s World Pizza.   If the name change is wholesale, it looks like owners have changed hands.

In summary, if a business wishes to change it’s name, the owners should consider if financing is in their plans in the following 2 or 3 years, and if so, this should be factored into the decision if the name is changed, and what it is changed to.

What are UCC blanket liens?

UCC blanket liens are not uncommon, especially with traditional financial institutions.   However, what are UCC Blanket liens, what do they cover and what restrictions do they cause businesses?

UCC stands for Uniform Commercial Code.   A UCC lien means that a lien has been placed at the State on some asset, either tangible or intangible, at a company.    A UCC blanket lien means that a lien has been placed on all assets, furniture, fixtures, and equipment.  This is how the lien is generally listed at the state.   Further details of the lien will vary based on the lender.   Often the lender will write in specific details, which may include:

1.  A lien on Vehicles or a lien on Accounts receivable.

2.  A lien on any future assets, during the term of their loan

Both of the above lien conditions can be very significant to a business and business owners should be very cautious.   If a lender puts a lien on a company’s Accounts Receivables, this means that if the company completes a job and is due a payment that far exceeds the remaining balance with the current lender, the current lender is the ultimate legal owner and legally entitled to the Accounts Receivable asset.

What can be considered the more insidious lien is a lien on any future assets during the term of the loan.   Under this condition if the company buys 5 commercial vehicles for cash, the lender technically owns those vehicles.    If this lien condition is observed to the letter, then a business could technically not take out any future asset based loans because the newest lender will want to take out a lien on that asset and may be unaware that a previous lender has a lien on all future assets of the borrower.

There is a legal grey area even with a regular UCC blanket lien filing.    The regular UCC blanket lien says a lien on all assets, furniture fixtures and equipment.   If a business goes out and acquires another asset free and clear, then it is still a current asset, which is covered under the UCC.   If the business acquires an asset which another lender puts a lien on due to a new loan, then there may legally be an ownership conflict with that collateral.   The new lender may not have a clear legal right to that asset based on the previous lien.

In many of these cases, there are significant issues that come with the lien filings and businesses should do due diligence.


Grants, not for profit companies

Recently, some regular for profit companies have inquired how they can get free loan grants.    In general, Grants are not for profit companies, unless they fall into certain limited specific categories which sometimes change.

The general public overwhelmingly seems to believe that there are many grants available, mostly from the Government, which never have to be paid back.   Grants are issued primarily to non profit businesses.   There are some exceptions, and those exceptions vary over time.   In some instances, States may issue grants to certain start up businesses, or to businesses in certain industries.   It is not uncommon for States, and sometimes the federal government to issue grants to businesses that are in very specific technology industries in their efforts to provide an incubator for certain new technologies.

Sometimes states will issue Grants to certain businesses in the farming sector as States wish to promote the continued health of farming in their States.   There are also instances in which certain minority owned businesses may be provided Grants.   In general, For profit businesses do not receive Grants.   Federal and State governments do not wish to provide money from revenues to businesses that are engaged in for profit endeavors.

It should also be noted that there are many companies that advertise paid services in which, for payment rendered, they will instruct the buyer how to obtain a grant.    Many of these advertisements do not indicate that these Grants are not for profit businesses and that they are only for non profit businesses.    There are also many companies that advertise books as well as online books that are sold on how to obtain Grants.   These fall into the same category in that these books are being sold on how to get something that in the vast majority of cases, does not exist.

Now what, more Political fights in the next 3 months?

After 2 months of intense fighting and bickering, politicians in Washington have come to an agreement that, in the most minimal way, will avert the fiscal cliff.   However, the politicians only agreed to revenue rate issues and delayed the spending issues for only two months.   So in only 2 months, there will be another big fight, which means that the fight actually begins now.

If that were not enough, there will be another major political battle over raising the debt ceiling, which will need to be raised in the short term, within possibly 60 to 90 days as well. One would not be faulted for wondering when the politicians will actually Govern and deal with other important issues such as creating jobs, stimulating the economy, skilled jobs training, foreign wars, energy concerns, etc.   It seems that the politicians are not gauging the overall anger of the public.    It appears that each representative is gauging how the political battles are received relative to their political districts.    If it plays well in their district, they have little concern about how their vote plays nationally.

The politicians are already positioning themselves for the upcoming debt ceiling increase request by the president.   Just today, House Speaker John Boehner has already stated that he will not meet with President Obama as part of the negotiations.   President Obama stated that, unlike last years Debt Ceiling fight, he will not have a fight over the debt ceiling this time.   The President stated the Congress should pay for the spending that they Authorized and voted for so there should not be any reason to have a battle over it.   Senate minority leader Mitch McConnel stated today that any increase in the debt ceiling would have to be matched dollar for dollar by spending cuts in order for Republicans to back the increase.

Just today, Senators John McCain (R) – Arizona and Lindsay Graham (R) – South Carolina have stated that they plan for a big fight and not allow a debt ceiling increase without large spending cuts to entitlement programs.   However, most reputable economists agree that spending cuts in the order of 40% + all of a sudden would cause a decrease to GDP far greater than the decrease in the GDP during the recession of 2008.   Senator Graham stated that he wants decreases in entitlement programs by increasing the eligibility age of Social Security from 65 to 68.   If this age limit is increased much more, it may end up equaling the average life expectancy.

So the real question becomes, does the Government really want it’s citizens to have a retirement or downsize Social Security dramatically by basically raising the eligibility age so high that people won’t have a retirement?

U.S. Import prices fall .9% in November

U.S. Import prices fall .9% in November and export prices decline .7%, per the bureau of labor statistics.   The bureau reported that the decline was led by lower fuel prices.

The bureau further reported that fuel import prices were down a full 3% in November after edging down .1% the previous month.   The decline for overall exports was driven by lower non agricultural prices which the bureau said more than offset a .1% uptick in agricultural prices.  In spite the November decline, the price index for overall exports was up .7% over the year.

The advance was primarily due to an increase in Soybean prices of 30.2%, 14.5% in corn prices, and a 19.8% rise in wheat prices.    These fluctuations will continue, most especially in those areas in which fuel prices have the most influence.    In this report, lower fuel prices were cited as the major reason that U.S. import prices fell .9% in November.   However, fuel prices increased in the short term after that.    The reports for import prices in December will likely reflect this increase in fuel prices.   Since fuel prices are set by world markets, the government has little control over the resulting price increases and decreases in imports.

Other significant issues which may affect commodity prices are the continuing lingering drought in the next few months.   A major danger in the next few months is also the danger that barges will not be able to transport goods down the Mississippi river due almost historically low water levels.    If goods cannot be transported via barges, then goods may have to be transported via rail, which is significantly more expensive.   The current prediction is that unless there are significant additional rains, barge traffic will have to be reduced or possibly stopped sometime by end of January 2012 or February 2013.



.8% decline in Producer Price Index in November

.8% decline in Producer Price Index in November reported per the 8:30 A.M. November 13th report by the Bureau Of Labor Statistics.

The bureau further reported a decrease of .2% in finished goods in October, which followed a 1.1% rise in September.  In the initial stages of processing, prices obtained by manufacturers or intermediate goods declined 1.2% in November, while the crude goods index edged up .1%.   The bureau reported that on an non adjusted basis, the finished goods index advanced 1.5% for the twelve months ending November 2012.

The bureau stated that the declined in the finished goods index in November was due to a sharp decline of 4.6% in finished energy goods.   Prices for the finished foods inventory rose  1.3% in November, the sixth consecutive monthly increase.   Low oil and fuel prices were cited again as the primary reason for the .8% decline in the Producer Price Index.   Since fuel prices continue to fluctuate dramatically over time, these prices may fluctuate as well.  Expect the price index to possibly increase for the November report or December report, or possibly both, due to increasing oil and fuel prices in the period just prior.    The (PPI), Producer Price Index is tied closely to commodity prices, not just fuel, but other raw materials.   If the prices of other raw materials, such as metals increase, this will further push up prices and the (PPI), producer price index.

The producer price index also included the price of food commodities, which is also affected by the price of crude oil and fuels.  When the price of any crude oil increase in any given month is removed from the math, in most of those cases, the Producer Price increase will reflect and increase in most of those cases.   The main exception to this is in the prices of food commodities.   In many years, if there is a bumper crop, food commodity prices will go down and lower the (PPI), even when lower fuel prices are taken out of the factoring.

Part time and discouraged workers figures stay steady

10:30 A.M, Friday December 7th report by the Bureau of Labor Statistics, (BLS) reflect that while the unemployment rate has gone down, the Part Time and discouraged workers figures have held steady.

According to the bureau, the number of persons employed part time for economic reasons, which the bureau refers to involuntary part time workers, was 8.2 million in November, which was essentially unchanged from the previous month.   These workers reported that they were working part time because their hours had been cut back or they could not find full time work.    The number of discouraged workers was 979,000 in November, also little changed from the previous year, per  the SBA, Small business administration.

Productivity Increases 2.9% in 3rd Quarter per Bureau of Labor Statistics

2.9% increase in Productivity, and a 1.9% decrease in unit labor costs says the Bureau of Labor Statistics, per their December 5th, 8:30 A.M. release.

The bureau reported further that the increase in productivity reflects increases of 4.2% in output and 1.3% in hours worked.   From the 3rd Quarter 2011 to the third Quarter 2012, productivity increased 1.7% as output and hours worked rose 3.5% and 1.8%.

True productivity, or output per hour, is calculated by dividing and index of real output by an index of all hours worked by all persons, including employees, proprietors and unpaid family workers.   The bureau defined unit labor costs as the ratio of hourly compensation to hourly productivity.   Manufacturing sector productivity declined .7% in the 3rd Quarter of 2012, as output decreased .7% and hours remained the same.

Productivity increases 2.9% in 3rd Quarter resources

SBA Community Blog and Forum –  Blog and Forums by the SBA, Small business administration.   Questions can be asked and answers provided.

U.S. Department of Commerce – Helps american businesses become more innovative at home and competitive abroad.

U.S. Bureau of Economic Analysis – Provides statistics on consumer spending, corporate profits, travel and tourism and much more.

Entrepreneurworld – Resource for Entrepreneurs, including starting your own business, growing your business.

Bureau of Labor Statistics – Provides companies with up to date information on employment, demand, hiring, productivity and other information that may be useful to companies.

International Trade Administration – Creates jobs and economic growth by promotingU.S. companies abroad to governments in other countries.

More Productivity increases 2.9% in 3rd Quarter resources:

Department of Labor – Provides information on many labor issues that can be useful to companies, such as insurance, regulation, wages, wage hours, compensation, safety and health

U.S. Patent and Trademark Office –U.S. office to file patents to protect a companies new or existing proprietary products.

U.S. Trade and Development Agency – Promotes U.S. Exports to Foreign Countries, please review if your company is interested in exporting goods to foreign countries.

CEO Refresher - A monthly newsletter on creative leadership ideas. Short articles, brief book reviews, models, management tools, quotations and commentary.

E-Network for CEOs – Online articles and much more for CEO’s

Public Radio Planet Money – All issues money related to the public.

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