business bank statement loan
Small Business Loans Depot offers a niche business bank statement loan based on the Gross Sales of the Business. Since almost all businesses have sales, almost all businesses pre qualify. The funds can be used for any reason, marketing, advertising, inventory, expansion, additional employees, cash flow, new product lines, or taxes.
For this business bank statement loan product, businesses provide their last 3 months business checking account statements and a simple one page application. To be approved for a higher funding amount, a business has the option of providing the most recent year’s business tax return. If the Gross sales figure is significant, the approved amount will often be higher. Repayment terms for this product are 2 to 18 months. The final term of the transaction is often based on the customer’s preference. For Corporations that have been in Business for more than 3 years, they may qualify with just the most recent month’s bank statement.
Features and Benefits:
– Only 4 Deposits per month are needed
– No Site inspection for almost all deals
– No landlord verification calls on qualifying deals less than $150,000
– Renewals possibilities once balance is 40% to 50% paid off
– Options for more funding after 30 days.
– For qualifying loans, no UCC filings
What is needed for Approval?
– Most recent 3 months complete business checking account statements
– Signed and dated application.
What is needed for closing?
– Copy of driver’s license
– Copy of voided check. Specifically, this is a copy of a voided business check.
Funding amounts of up to $500,000 can be obtained through this business bank statement loan. 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% to 33% 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 for $10,000 to $13,333.
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.
Line of Credit type usage. This business bank statement loan is a line of credit that is used at the customer’s discretion. A typical term loan is 6 to 12 months. This line of credit type product is often used as a bridge loan. If the customer is approved for $50,000, they can use the full $50,000 or they can choose to use only $25,000. After repayment is complete, the customer can use the line again immediately. The business can also use the $50,000 later in a second part.
Line Size Increases. With every successive usage, the line size is reviewed and typically increased. A repeat customer is the most desired. We do not give better deals to new customers that have the same profile as an existing customer. An existing repeat customer is given higher line sizes than a similar new customer. Within a few rounds of usage and repayment, the line size is often increased 50%, 100% or 150% from the original line size.
Line does not appear on personal credit. This business bank statement loan does not appear on the owner’s personal credit bureau. The line does build business credit with the business credit bureau agencies, such as Payment, Dun & Bradstreet and Experian business credit report.
December 28, 2015, Richmond, VA., for immediate release. Mid Atlantic Medical Center closes $250,000 business bank statement loan. CEO Robert Stallings announced, “With this line, we will expand our services and offer Pediatric care to our customers. This will include outfitting additional offices currently vacant at our current location. We will also use funds for minor construction to have separate entrances for pediatric patients and their families. We anticipate increasing revenues up to 50% within the first two years and up to 100% within the next three to five years. We hope to continue and expand our relationship with Smallbusinessloansdepot in this area and increase the financial tools used for this expansion.” Mr. Stalling further stated, “We will also request a traditional construction after this 3 to 5 year period. With the forecasted increases in revenue, we anticipate relocation to a newer facility after a 5 year period.”
December 18, 2015, Spokane, WA., for immediate release. Big Horn Transport announces $300,000 business bank statement loan. President Albert Rodriguez announced, “With this line, Big Horn Transport will expand it’s primary delivery range through southern California. Although we transport Nationwide, our primary range was from Seattle to San Francisco and eastward to Salt Lake City, UT. We will also enter the Car Transport business and financing several refrigerated trucks. We are about to secure two large contracts for which this equipment will be needed. This line will allow us to obtain all the required trucks needed to fulfill these contracts. We look forward to using and expanding usage of this line over time. We also look forward to working with SmallBusinessLoansDepot for future financing needs.
10/30/2015, St. Louis, MO. Big River Construction establishes $250,000 business bank statement loan through SmallBusinessLoansdepot.com. CFO Dave Bowers announced at a company meeting. “Big River Construction will use this credit line to compete with the largest general construction companies in the St. Louis area. We will be able to achieve our goal of bidding on and acquiring Local and State government contracts. These contacts will cause a major increase in company revenues in the next several years. We will also hire additional employees, add equipment and increase advertising. We also plan on expanding into highway construction and bridge work in the next several years. Big River Construction expects to reach $15,000,000 in revenues within the next 3 years and become one of the three largest construction companies in the eastern Missouri area.
09/23/2015, Seattle, WA. Pacific Coast Construction closes $150,000 bank statement loan through SmallBusinessloansdepot.com. President Harmon Walters made the announcement at a company meeting. “Pacific Coast Construction will use this line to become the leader in construction in the northwest Washington State area. We will hire additional employees, make improvements to equipment and offer additional services. We will also increase our presence in additional States, allowing us to compete vigorously for new contracts in the Northwest region. We expect revenues to increase in the 25% range for the next 2 to 3 years. This line will be renewed and it is our hope to increase usage in the future.”
September 17, 2015, Phoenix, AZ. North Phoenix Engineering announces $100,000 business bank statement loan through SmallBusinessLoansDepot. CEO Darius Gentry told the Phoenix Business Journal, “With this line, North Phoenix Engineering will expand structural building services into the New Mexico and Colorado Market. We will add additional engineers and increase advertising. We will be the leader in Arizona structural Engineering services. We look forward to entering into this relationship and expanding this borrowing relationship in the future.”
August 25, 2015, Texarkana, AR. Mid States Contracting closes $350,000 business bank statement loan. CEO Don Keller announced the closing at the company’s monthly meeting. “This line gives Mid States Contracting the ability to complete the largest private sector and government jobs in Arkansas and in the mid states region. We will expand into commercial foundation. Funding will initially be used to hire additional employees and add sales staff. We will expand into east Arkansas and become a leader in general contracting in the State.”
Sample recent business bank statement loan transaction. The following is a recent customer with the customer’s name changed.
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 even below 500 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.
Use to get
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.
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 business bank statement loan 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 Business Bank Statement Loan resource page!
The SBA offers assistance with business plans and putting together financial statements.