For a 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, virtually all businesses pre qualify. The funds can be used for any reason, marketing, advertising, inventory, expansion, additional employees, cash flow, any reason.
Complete the “Contact Us”, or Application in the menu bar above, or call us at Toll Free: 855-787-1113 today!
For this business bank statement loan product, businesses provide their last 6 months business checking account statements and a simple one page application. To obtain a higher funding amount, a business also 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 3 to 18 months. The final term of the transaction is often based on the preference of the customer’s initial request of the term.
Funding amounts of up to $150,000 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, up to $62,500 can be approved. Approval time is 24 to 72 hours.
If your company’s average daily balance, beginning balances, and ending balances are high, approval amounts will be even higher. If the customer has more than one business account, then both account statement should be provided. This will increase the line size of the business bank statement loan. If your business is seasonal, then you have the option of providing the last 12 months account statements.
For example, a construction business is often somewhat seasonal 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 high summer season.
Line of Credit type usage. This business bank statement loan is, in effect, a line of credit that is used at the customer’s discretion. A typical term loan product is 24, 36, 48 or 60 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 $25,000 for example. Upon repayment, the customer can use the line again immediately, or leave the line idle for a few months and then use the full $50,000 on the 2nd usage.
Line Size Increases. With every successive usage, the line size is reviewed and typically increased upon review. A repeat customer is the most desired. We don’t give better deals to new customers to get them in the door! An existing repeat customer is given higher line sizes than a similar customer that is new. 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.
Use what your business already has to help insure getting a loan now, your businesses sales! Call us Toll Free at 855: 787-1113 or complete the Mini Application “Contact Us” form in the menu above and begin today!
Sample recent business bank statement loan transaction. The following is an actual recent customer with solely the customer’s company name omitted from use.
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.
They provided their most recent 6 months business checking account statements along with a simple one page application. After a 48 hour review process, they were approved for a $40,000 business bank statement loan. After choosing a repayment term, original documents were E-Mailed to the customer. The customer completed the documents and Faxed the original documents in.
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 take only 5 – 8 business days.
Difficult transactions handled routinely
Use to get
What are the primary factors that are looked at for this business bank statement loan?
Average daily balance. The average daily balance, or average daily collected balance is considered. Lines begin with an average daily balance starting at $3,000 to $5,000 and up. 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 approximately 5 deposits per month are requested. The higher the dollar amount of the average monthly deposit, the higher the approved amount, 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 or business mortgage payments and other payments scheduled for the end of the month. Due to 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. As stated above, 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 occurances. A company can have some insufficient funds and overdraft events per month. The statements are reviewed to make sure that the number of occasions are not excessive in one given month.
Many businesses have significant cash flow challenges in the first few years, even after expert counseling from organizations such as score and the small business development centers in their area. Businesses should take advantage of their strengths such as their cash flow even if they may not qualify for other loan products.
If a customer wishes to obtain a higher business bank statement loan approval amount and has strong financial statements, they should in that case provide financials. What are considered strong financials?
Answer: Strong financials are financials in which the Gross Sales are steady or increasing
from one year to the next. The net income should also be at least the same or increasing from one year to the next year. The net income cannot be close to zero or negative. The net income figure should be an amount that easily exceeds what the monthly payment would be on any new loan multiplied by 12. Since a new loan is being considered, if the company currently is showing close to zero for their net income, then they cannot service any new debt and may be declined. In many cases, the net income figure may only be a paper loss and not a real loss due to the company’s accountant using every accounting tactic they can to take the net income figure as low as possible. If your company’s accountant is doing this in the effort to obtain a business bank statement loan, or any other loan, you should speak with your accountant. Let them know your company will be applying for business loans in the future and needs to reflect significant net income on it’s financial statements. This should also apply to interim financial statements.
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 relatively flat or increasing from year to year. The minimum net income figure that is considered to help an application is $50,000 or higher. For lower net income figures than this, underwriting will consider whether the company has the cash flow to service the new monthly debt or not.
Personal Financial Statement. As part of a request for “financials”, the request may or may not include the desire to see the personal financial statement of the owners. If the personal financial statement is requested, then the lender will look at number of items such as liquid assets, non liquid assets, short term liabilities and long term liabilities.
Liquid assets. Liquid assets are considered either cash, or anything that can instantly or very quickly be converted to cash. This includes checking and savings accounts, listed stock, certificate of deposits.
Business Bank Statement Loan 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 promoting U.S. companies abroad to governments in other countries.
More Business Bank Statement Loan 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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