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.
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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.
Funding amounts of up to $350,000 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.
Use the business sales your business already has to help insure getting a loan. Call us Toll Free at 855: 787-1113 or Tel: 919-771-4177 and complete the Mini Application contact us form in the menu above and begin today.
01/09/2015 – Metro Hardware in Detroit, Michigan announces a $150,000 business bank statement loan through SmallBusinessLoansDepot . Metro Hardware has 3 locations in the north Detroit suburbs. Metro hardware SVP Oscar Salazar announced, “With this line, Metro Hardware will be able to streamline seasonal inventory purchases more effectively. We will expand product lines and start a marketing campaign that effectively uses target marketing and social media. We will continue to work with SmallBusinessLoansdepot.com to expand our credit line relationship.”
11/05/2014 – For immediate press release – High Point Aviation closes $1,250,000 business bank statement loan through SmallBusinessLoansDepot. President James Martin issued a statement. “This credit facility gives High Point Aviation the ability to compete nationally in the Corporate jet market. High Point will become a leader in this aviation segment in the United States and Canada. We will increase our international presence in the European market and we look forward to expanding this credit relationship in the future.”
08/19/2014 – For immediate release – Prism Technologies establishes a $250,000 business bank statement loan. Executive Vice President Lilly Preston announced “This line gives Prism Technologies significantly more flexibility to complete our new technology manufacturing plant. We will also be able to complete product lines that have been pending and add new lines in the next year.”
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 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.
Many businesses have significant cash flow challenges in the first few years. Expert counseling from organizations such as S.C.O.R.E. and the small business development centers can help with cash flow planning. Businesses should take advantage of cash flow when they may not qualify for other loan products.
A customer wishes to obtain a higher business bank statement loan approval amount. What can they do? Provide strong Financials. What are strong financials?
Strong financials have increasing sales from one year to the next. Net income should be the same from year to year. The net income cannot be close to zero or negative. Net income should be more than the annual new loan payment. A company will not be approved if it’s net income figure is zero. In many cases, the net income figure may only be a paper loss and not a real loss. The company’s accountant may be using accounting 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, talk to them. Tell them your company will be applying for business loans in the future. Your business needs to reflect 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 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.
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.
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