Businesses often begin as a Sole Proprietorship or Partnership and Incorporate later.
When this happens, the Secretary of State will only show the time in business since the time of the Incorporation. The time the Company was a Sole Proprietorship or Partnership will not be added.
For example, if a Company was Unincorporated for 3 Years and has been incorporated for 2 Years, it will only show on the Secretary of State as 2 Years Time in Business. If the Company wants credit for the full 5 years, they should provide the business licenses since it began as a Sole Proprietorship. Lenders will give the Company credit for the full 5 years.
Not being able to provide proof of the existence of the business
Some States do not require a business license to operate a business. The owner will operate the business in their personal name and say they run a business. They will not be able to get a business loan because they cannot prove the existence of the business the way Lenders require it.
Business Account balances are too low or overdrawn at the time of closing
After a business is approved for a business loan, their Business Checking account may be reviewed before closing. This will include a review of the current balances, the Month to Date balances, NSF’s and Overdrafts within the last 30 to 60 days.
Many business loans require a verification of the business bank account. This is often done through 3rd Party Vendors such as a DecisionLogic check, and Joinme. Bank verification can also be done through phone verification.
Cannot pass merchant loan closing call
The lender will often call the merchant just before closing for a merchant loan closing call. The purpose of this is to go over the terms with the merchant, get agreement and simply verify the merchant and that they want to close the loan.
The business cannot provide all of the documentation required in the closing stipulations.
Business loans have a list of closing requirements that have to be met. If the applicant can get most of them but not all of them, they may not be able to close the loan. If you fall short in getting the Documentation required to close a business loan, talk to the Lender about what is missing. You may be able to get the remaining items waived. Another option is to provide substitute information. Many times alternatives to what was asked for may be accepted. New business
A new business and businesses less than 2 years old will have a hard time getting funding. There are still some options for a very short time in business that a new operation can take advantage of to get funding.
Frequently asked questions FAQ: The top reasons business loans don’t close
What are the main reasons businesses can’t close a loan?
Problems at closing and denials include not being able to satisfy closing requirements and
customer background checks. Other reasons include low revenues, bad credit, short time in business and type of business.
What can we do if there is a problem before closing?
Many obstacles to closing can still be overcome and the loan might still close. Possibilities include asking the lender for a lower amount. Ask them specifically what can you do to correct any closing problems and still fund the loan. Some things cannot be corrected but get them to offer solutions to you.
What business loans can we get after the banks have turned us down?
There are many alternative options your business can consider when traditional banks won’t
close the request. Contact us to review your specific situation.
We are a leading funding source for all Small Businesses looking for the best alternatives to Banks.
Author Biography:Will Sanio, Owner of SCF Funding, dba SmallBusinessLoansDepot.com, has a Bachelor of Science Degree in Business Administration with a concentration in Finance from the University of Tennessee, Knoxville.
Over 20 Years experience including 10 Years with Wells Fargo, formerly Wachovia Bank and First Atlanta Bank. Specializing in Traditional and Alternative lending.
Will Sanio: University of Tennessee Diploma – Bachelor of Science in Business Administration with concentration in Finance – Click or Tap to Enlarge Image.
Customers have several common complaints about Business Loans. Here, we will take a look at the Top 12 customer complaints. Customers often do not close an approved business loan because of one or more of these reasons. Apply below for programs that fund businesses over these hurdles!
The rates and cost is too high. They want a better rate and terms.
Customers often want and need a business loan with a lower rate and better terms.
Another requirement is they need working capital with lower total repayment and lower cost overall.
The approval amount is not enough
Customers often call in and say they need a higher approval amount and more money
for my business loan. They will go for a different loan if they cannot get what they want, or also get a second loan.
The term of the loan is not good.
Customers also say the term is too short and needs to be longer. Another requirement is a business loan longer than 24 months.
It is not a Monthly Payment.
A very frequent request is to get a business loan with a Monthly payment. Customers really want a Monthly payment if they can get it.
It is a daily payment.
Applicants will say right away if they do not want a business loan with a daily payment. Many have had this type of repayment in the past and will not do it again.
It is a Merchant Cash Advance.
Customers oftentimes do not want a Merchant Cash Advance. They will say they need a business loan that is not a Merchant Cash Advance. When this is the case, the customer will look for alternatives to a Merchant Cash Advance.
The Prepayment option is not good.
Another complaint is they want a business loan with no prepayment penalty. They want to be sure they will get a good discount if they pay off early.
The type of loan is not what they wanted.
Sometimes customers will tell you they don’t want the type of loan they have been approved for. They do not want very expensive payments or an unfamiliar product.They are not sure what type they want, but they have decided they don’t want the one being offered. Have a conversation about other business loan types so Customers will get the loan that works for them.
They don’t want to put up Collateral
Many do not need or want a business loan with Collateral. They do not want to put up Collateral, or they do not have Collateral.
Do not want to give a Personal Guarantee.
Customers may not want to close a business loan with a Personal Guarantee. They believe they can get an offer without one but most financing requires it.
Whether the loan will, or will not be reported on their Personal Credit.
A business loan that reports on Personal Credit is sometimes specifically requested. Other times, customers want the opposite and do not want it reported to the credit bureau.
The request took too long.
Some requests that are eventually approved do not close because the processing time was too long. Customers will tell us they need funding quickly. These are the Top 12 Customer complaints with business loans. Contact us to apply for programs that avoid these problems.
We are a leading funding source for all Small Businesses looking for the best alternatives to Banks.
Author Biography:Will Sanio, Owner of SCF Funding, dba SmallBusinessLoansDepot.com, has a Bachelor of Science Degree in Business Administration with a concentration in Finance from the University of Tennessee, Knoxville.
Over 20 Years experience including 10 Years with Wells Fargo, formerly Wachovia Bank and First Atlanta Bank. Specializing in Traditional and Alternative lending.
Will Sanio: University of Tennessee Diploma – Bachelor of Science in Business Administration with concentration in Finance – Click or Tap to Enlarge Image.
What type of alternative business loans can I get in Canada?
Canadian companies can find alternative working capital loans available in the United States.
The company’s business cash flow is how they can qualify. Because of this, the business needs to have the following:
$10,000 per Month in deposits each of the last 3 months.
5 or more deposits per month.
An average daily balance of $1,500 or more.
How do I qualify for a business loan in Canada?
Review the alternative business loans for businesses in Canada on this page. Decide which option you may qualify for. Complete the Online application above or call and talk to a representative and discuss which loan option might be best for your business.
Canadian Accounts Receivables financing
After a Company’s products have been delivered or services rendered to another company, they send an invoice for payment. Canadian Accounts Receivables financing funds about 75% of the face value of the invoice is paid immediately to the company issuing the Invoice. When the paying company pays the invoice, the last 25% is paid minus a service fee. As a result, the company’s cash flow is accelerated by 100% during the year
FAQ Frequently asked Canadian business loan questions and requests
Can I get a business loan in Quebec?
We have excellent options for businesses in Quebec. Terms between 3 and 9 months with competitive rates and fast funding.
Amounts range from $10,000 as high as $500,000 for Canadian companies. Establish a relationship now for easy future funding. Underwriting offers fast renewal funding options. Apply above.
Canadian small business loans. Get easy and fast alternative business loans for businesses in Canada. Short 30 second Application.
We are a leading funding source for all Small Businesses looking for the best alternatives to Banks.
Author Biography:Will Sanio, Owner of SCF Funding, dba SmallBusinessLoansDepot.com, has a Bachelor of Science Degree in Business Administration with a concentration in Finance from the University of Tennessee, Knoxville.
Over 20 Years experience including 10 Years with Wells Fargo, formerly Wachovia Bank and First Atlanta Bank. Specializing in Traditional and Alternative lending.
Will Sanio: University of Tennessee Diploma – Bachelor of Science in Business Administration with concentration in Finance – Click or Tap to Enlarge Image.
Other bank statement business bank statement loan advantages:
Get up to 125% of a customer’s total monthly deposits. If your business has average monthly deposits of $100,000, then expect your approval to be up to $125,000 if there are existing loans.
How to qualify
– Provide a signed and dated application online.
– Send the last 3 months complete bank statements from the main business account along with the application.
FAQ Frequently asked questions:
Question: What is the most we can get?
Answer:The approval amount depends mostly on monthly deposits per month, the average daily balance, credit and time in business. With high deposit volume your business certainly may get a high offer.
Question: We are in Canada. Can we get funding?
Answer: Yes. This loan based on business bank statements is also available in Canada as well as Puerto Rico.
Question: How long does funding take?
Answer: Approvals are usually the same day and as fast as 2 to 4 hours. Funds can be in your business checking account that same day or next day.
Question: What are the repayment terms?
Answer: The repayment terms are between 1 Month and 24 months. Most offers are 6 to 12 months. Sometimes approvals for 12 to 24 months are available.
Answer: Yes, the most is 7 overdrafts or 7 NSF’s per month. If your business has more than 7 overdrafts then it can still be reviewed for approval. Over 5 overdrafts or NSFs per month are considered high.
In conclusion:
For all the reasons above, your business has an excellent chance of getting funding based on the monthly revenue it deposits. This funding is an excellent way to do that without being denied for bad credit, time in business and not having financials.
For further expert general small business assistance, visit SCORE, Counselors to America’s Small Business.
Video Description: How to get a large business loan. Includes options, programs, requirements, approval and the funding process. STEP 1: Call the Lender, STEP 2: Qualifying, STEP 3: When you Apply, Only Provide:, STEP 4: Closing
Call the lender that offers bigger loans and talk with someone that can make an assessment or a pre-approval. Tell them your company’s specific details. Type of business, annual or monthly revenues, deposits, time in business and credit.
Are there clear reasons they might deny you? This helps you know where your business stands. Do you have a good chance? This avoids wasting time with unnecessary declines also.
VIDEO CLIP Below: Call the lender: Give them details : 10 Seconds – 35 Seconds in Clip below.
Call Lenders to match your company’s needs.
Step 2: Qualifying
What is it going to take to get the amount you need? Generally it includes annual revenues. Getting amounts more than your annual gross revenue is hard to qualify for. An amount up to that is easier.
Review your time in business. Short time in business such as less than a year can be approved. The longer the time in business the higher the amount.
Review your credit score. High amounts can be approved with a low credit score, even below 600. The higher the score, the more you have a chance to qualify for.
Also, big business loans into the millions can be backed by real estate. Weekly, bi-weekly, daily or monthly payment options are available depending upon the program.
TIP: There are specialty low rate programs for preferred industries, like retail, restaurant, auto repair, beauty supply and spa, medical, dental, and chiropractors as well as hospitals and emergency care facilities, construction and manufacturing companies, factories, grocery and convenience stores, landscaping and landscape design companies.
Hospitality, hotels and motels, assisted living and nursing homes, golf courses and resorts, cannabis dispensaries.
TIP: Is your business in an industry that is restricted and cannot easily get funding? Find out what options are available for your business. Used car dealers, real estate, trucking companies, collection agencies, non profits, attorneys, religious organizations, and many other hard to fund types of businesses that have trouble finding options.
For larger bigger business loans, they also include construction companies and contractors, cleaning and maintenance companies, brokers, insurance, mortgage and financial brokers, staffing companies and temporary employment agencies, small and larger logistics and transportation companies.
VIDEO CLIP Below: Qualifying Clip:
36 Seconds -126 Seconds in Clip below.
How do I qualify?
Step 3: When you Apply.
When you apply only provide cash flow information that helps your request. Don’t send bank statements or other financial information that shows weak sales unless you are required to send it.
Avoid sending information that was not requested. It may be interpreted in negative ways you did not realize in advance.
VIDEO CLIP Below: When you Apply, only provide: 127 Seconds -143 Seconds in Clip below.
Apply for Funding
Step 4: Closing
TIP: Should be an easy slam dunk? Lots of businesses get declined between the approval offer and the closing for funding.
Examples include: Closing requirements also called stipulations that are reviewed as part of the closing process. They are low recent balances in the business, even overdrafts, NSF’s and overdrawn accounts.
This may happen in the current month that the lender does not know about and why they do a bank verification before closing. Proof of ownership or other financials such as information on other owners, more bank statements, or a tax return could be requested.
If your company is declined, ask what are the reasons and if you can fix it now or in the short term so you can get approved and close. Sometimes you can satisfy the denial reasons, still close and get the money wired to your account.
Finally, a background check will be completed. This can pull up previous businesses the owner had in the past. They may have had a default or slow payment with with other lenders. We can help you deal with these issues and get you funded. Contact us at 919-771-4177.
TIP: Other big business loan types and challenges companies face trying to get higher approval amounts include specialty business loans to repair your truck, against your truck or vehicles, or against your trailer. Loans for hot shot and some hot shot start up options.
Where to get business loans processed on weekends and in evening hours after 5. Have you ever been asked for a MTD month to date statement? We show you how to get it step by step and also avoid being declined for problems with your current month such as the drop in deposits since the beginning of the month.
Are you afraid you will be declined and not want to apply maybe because your credit score is too low, or other reasons? Find out in advance the top 9 reasons why business loans are declined and what business loans you can get approved for and close with a low score and other problems.
Articles on emergency business money for payroll and product orders. Are your invoices being paid too slow? Learn how to speed up your invoice payments through factoring. Is your business a new start up and you don’t have 3 months statements or time in business?
Many businesses have low or declining monthly deposits and low average balances. Find out where and how your business can get funding with these issues.
Resources on what to do if your business needs funding and has a current federal or state tax lien. Also learn what some States like California, Virginia, Florida, Utah, New York and others require for bank statements and the disclosures involved.
From unsecured cash flow loans like bank statement loans, business line of credit style options, asset based loans on your equipment, trucks, big rigs, construction equipment.
To apply, click on the apply button at the bottom right of this screen, or on the end screen of this video, or call us at 919-771-4177 or go to smallbusinessloansdepot.com. On YouTube, please subscribe, like and share.
VIDEO CLIP Below: Close: 144 Seconds – 300 Seconds in Clip below.
FAQ Frequently asked questions on large business loans. How can we qualify for a larger business loan?
Businesses that have revenues over $25000 per month and time in business over 3 months may qualify for higher amounts. Higher deposit amounts and average balances per month qualify for bigger loans. For some programs higher credit scores or strong financial statements can increase approval amounts.
Do higher amounts take longer to close?
Many of the programs get money to businesses in the same one or two days as smaller loans. Certain longer term programs and amounts over $500,000 can take longer to approve.
Can newer businesses qualify?
A start up can get large business funding amounts if they have had strong sales in the first few months. The business will need to have been operating and generating revenue for at least three months.
Can we get funding from the same program again later?
Yes. When the business pays the balance down to 50% it can qualify for more funding right away. One program is available now in which businesses can get funds after 30 days of timely payments.
Will Real estate and other assets be required?
Real Estate is not required. Customers that offer real estate or other assets can get higher approval amounts. Most businesses close the maximum they qualify for without using real estate or any other assets.
Can we get a monthly repayment and a longer term?
Monthly and weekly repayment business loans are available with longer terms of up to 60 months.
Many businesses need funding for over $500,000 or as high as $1,000,000 and higher.
Paying off a large Merchant Balance with a loan
You can take a merchant cash advance with a high or large balance and pay it off. Doing this can extend the term several months longer. A large merchant cash advance of over $100,000 or over $200,000 with less than 6 months left can be paid off and the term can be extended to 10 or 12 months. Terms up to 120 months may be available with same day and next day loans. Payoff your advance today!
Business owners say they have been declined because the amount they asked for was too high. They requested a business loan over $250,000 or more and were denied. Our programs are designed for higher dollar business loan needs.
Callers call in and ask:
Use the following chart below to determine what you will need when applying.
$50,000 to $100,000 Business Loan: Provide an application and last 3 months bank statements.
$100,000, $150,000 and $200,000 business loan. Provide an application and last 3 months business checking account statements.
$250,000 to $300,000 business loan. Submit an application, last 3 months business checking account statements and Year to date interim Profit and Loss (P & L) Statement.
$350,000, $400,000, $450,000 and $500,000 Business loan. Submit an Application, last 4 Months business checking account statements, Year to date Profit and Loss and Balance Sheet.
$500,000, $600,000, $750,000, $1,000,000 and $1,500,000 business loan
$500,000, $750,000, and $1,000,000 business loan: Submit an application, last 6 months complete business checking account statements. Provide the last 2 Years business Tax Returns.
$1,000,000, $2,000,000, $3,000,000, $4,000,000 and $5,000,000 business loans. Submit an application, last 12 months business checking account statements and last 3 years business Tax returns.
Businesses that have been denied by a lender because the amount of the request was too high will still try to get small business loans another way. Ask lenders upfront if they have a maximum loan amount and if they have different criteria for different dollar amounts. If so, what are they?
Because the lender has different lending criteria for higher business loan requests, they may not provide you with the information. Ask these questions to help get approved and also avoid unnecessary declines.
Show Video Transcript Details
In minutes and seconds.
0:00 Introduction
0:10 Step 1: Give the lender details
0:36 Step 2: Qualifying
0:47 Time in Business
0:54 Credit Score
1:06 Payment Terms: Weekly, Bi-weekly, Monthly, Daily
1:11 Preferred and Favored Businesses
1:36 Restricted Businesses
2:07 Step 3: When you Apply: Only Provide
2:24 Step 4: Closing: Problems and challenges
2:32 Closing Requirements: Stipulations
2:58 Declined? Do this
3:10 Background check
3:27 Other big business loan options
3:45 Current Month to date statement
4:42 California, Virginia, Florida, New York, Utah
5:01 how to apply
How to Get a Large Business Loan
Large business loans, big business loans, most lenders offer something small, or tell you no. [no] To apply, click on the apply button at the bottom right of this screen. So how to get a large business loan.
Step 1: Call the lender
that offers bigger loans and talk with someone that can make an assessment or a pre-approval. Tell them your company’s specific details. Type of business, annual or monthly revenues, deposits, time in business and credit. Are there clear reasons they might deny you? This helps you know where your business stands. Do you have a good chance? This avoids wasting time with unnecessary declines also.
Step 2: Qualifying:
What is it going to take to get the amount you need? Generally it includes annual revenues. Getting amounts more than your annual gross revenue is hard to qualify for. An amount up to that is easier.
Time in business. Short time in business such as less than a year can be approved. The longer the time in business the higher the amount. Credit score. High amounts can be approved with a low credit score, even below 600. The higher the score, the more you have a chance to qualify for.
Also, big business loans into the millions can be backed by real estate. Weekly, bi-weekly, daily or monthly payment options are available depending upon the program.
There are specialty low rate programs for preferred industries, like retail, restaurant, auto repair, beauty supply and spa, medical, dental, and chiropractors as well as hospitals and emergency care facilities, construction and manufacturing companies, factories, grocery and convenience stores, landscaping and landscape design companies. Hospitality, hotels and motels, assisted living and nursing homes, golf courses and resorts, cannabis dispensaries.
Is your business in an industry that is restricted and cannot easily get funding?
Find out what options are available for your business. Used car dealers, real estate, trucking companies, collection agencies, non profits, attorneys, religious organizations, and many other hard to fund types of businesses that have trouble finding options.
For larger bigger business loans, they also include construction companies and contractors, cleaning and maintenance companies, brokers, insurance, mortgage and financial brokers, staffing companies and temporary employment agencies, small and larger logistics and transportation companies.
Step 3:
when you apply only provide cash flow information that helps your request. Don’t send bank statements or other financial information that shows weak sales unless you are required to send it. Avoid sending information that was not requested. It may be interpreted in negative ways you did not realize in advance.
Step 4: Closing.
Should be an easy slam dunk? Lots of businesses get declined between the approval offer and the closing for funding. Examples include: Closing requirements also called stipulations that are reviewed as part of the closing process. They are low recent balances in the business, even overdrafts, NSF’s and overdrawn accounts.
This may happen in the current month that the lender does not know about and why they do a bank verification before closing. Proof of ownership or other financials such as information on other owners, more bank statements, or a tax return could be requested.
If your company is declined, ask what are the reasons and if you can fix it now or in the short term so you can get approved and close. Sometimes you can satisfy the denial reasons, still close and get the money wired to your account.
Finally, a background check will be completed. This can pull up previous businesses the owner had in the past. They may have had a default or slow payment with with other lenders. We can help you deal with these issues and get you funded. Contact us at 919-771-4177.
Other big business loan types and challenges companies face trying to get higher approval amounts include specialty business loans to repair your truck, against your truck or vehicles, or against your trailer.
Loans for hot shot and some hot shot start up options. Where to get business loans processed on weekends and in evening hours after 5.
Have you ever been asked for a MTD month to date statement? We show you how to get it step by step and also avoid being declined for problems with your current month such as the drop in deposits since the beginning of the month.
Are you afraid you will be declined and not want to apply maybe because your credit score is too low, or other reasons? Find out in advance the top 9 reasons why business loans are declined and what business loans you can get approved for and close with a low score and other problems.
Articles on emergency business money for payroll and product orders. Are your invoices being paid too slow? Learn how to speed up your invoice payments through factoring. Is your business a new start up and you don’t have 3 months statements or time in business?
Many businesses have low or declining monthly deposits and low average balances. Find out where and how your business can get funding with these issues. Resources on what to do if your business needs funding and has a current federal or state tax lien.
Also learn what some States like California, Virginia, Florida, Utah, New York and others require for bank statements and the disclosures involved.
From unsecured cash flow loans like bank statement loans, business line of credit style options, asset based loans on your equipment, trucks, big rigs, construction equipment.
To apply, click on the apply button at the bottom right of this screen, or on the end screen of this video, or call us at 919-771-4177 or go to smallbusinessloansdepot.com. On YouTube, please subscribe, like and share.
We are a leading funding source for all Small Businesses looking for the best alternatives to Banks.
Author Biography:Will Sanio, Owner of SCF Funding, dba SmallBusinessLoansDepot.com, has a Bachelor of Science Degree in Business Administration with a concentration in Finance from the University of Tennessee, Knoxville.
Over 20 Years experience including 10 Years with Wells Fargo, formerly Wachovia Bank and First Atlanta Bank. Specializing in Traditional and Alternative lending.
Will Sanio: University of Tennessee Diploma – Bachelor of Science in Business Administration with concentration in Finance – Click or Tap to Enlarge Image.
Start here for full LGBT small business loans and options. Equal access to business loans. Consider us for your gay business owner funding resources for alternative loans.
How are we different? We will first discuss your business in detail. Your future business goals and needs will then be reviewed. From that, the business loan products that are the best fit and can be approved will be discussed. We stay with you through the entire loan process.
500 and lower credit scores can be approved. Tax liens, short time in business accepted. $5,000 to $500,000. Short and long term loans. 3 months to 120 months. Fast turn around. Same day responses in most cases. Short 1 page application. Fast and easy process.
We will help you get an LGBT business loan fast through this program.
LGBT business owners sometimes encounter discrimination in the loan process. Our loans avoid these problems. There is full and equal access to business loans for the lgbt community. We discuss the specific needs of each business owner in detail. We help them determine the product that best fits their business now.
We work with and volunteer extra professional assistance to the community. There are many requests. Callers call in asking for gay friendly business loans.
Business Loan for Gay and LGBT businesses questions:
Are some of these lgbt friendly business loans programs specifically for the LGBT Community? No. These loan programs have been reviewed to insure they are friendly to the Gay and LGBT business community. All customers are welcome as well.
Business loans for Gay and LGBT Businesses Resources:
Program # 1: Business funding based on the assets of the business. If the business has over $10,000 per month in sales, they may be able to get a business loan based on their sales.
Commercial real estate with equity can also be used to payoff the open tax lien. At closing the tax lien is paid off from the proceeds of the loan. Another option is to use business equipment. Get capital based on business equipment. Use the funds to payoff the tax lien. These options can also be used to pay a tax lien that has a payment plan and also tax extension deadline balances.
Business loans with an IRS payment plan
There are several business loans that can be obtained for a business with an IRS tax lien that has a payment plan. A business can use the revenues of the business or the hard assets of the business. This can be Real Estate or Equipment.
Business loans without a payment arrangement with the IRs.
A business that has a tax lien without a repayment plan can be financed. Businesses needing immediate help can now quickly use their revenues or assets to get working capital or a business loan. The process is fast and easy. Up to 5 to 10 business days and just a one page application.
Resolve your open business tax liens with several quick programs.
Finally, other sources of information related to tax liens may be found at the SBA small business administration site.
FAQ on business and open tax liens
What is an open tax lien?
An open tax lien is a lien that has been filed by the irs or state government against a person or business that does not yet have a payment plan approved for repayment.
Can I get a business loan with a tax lien on my credit bureau?
There are several business loan options for businesses with a tax lien or open tax lien that are usually paid off at closing. Options are based on assets such as real estate or equipment as well as on cash flow.
Do I need an offer in compromise from the IRS before I can get a business loan?
A formal oic is usually, but not always needed. Real estate or equipment backed transactions may allow for payoffs of irs or state liens at closing. Smaller tax liens may not require an offer in compromise to close a business loan.
How do I know if I have a tax lien against me or my business?
Registered letters are sent by the IRS and state when liens are filed against you or your business. It will also appear on your credit bureau and against real estate you own. The county real estate office will have a record of liens against property.
Should I pay a tax lien if it has already been filed and damaged my credit?
Most lenders will not approve a personal or business loan with an active tax lien. Companies and vendors you do business with may be reluctant to enter into a contract with one on your credit file. The IRS also has the power to seize any of your assets without notice.
In most cases, banks are the institutions that require annual payout provisions on business loans.
The balance has to be paid down to zero at least once per year. This is a major negative that borrowers should be very cautious about.
Don’t mistake this for a minor aspect of the transaction because it could end up being very hard for the companies to do. Very few can payoff a balance on any debt once per year.
Borrower considerations
If an annual payout provision is not met, what can the lender do? If the company does not pay the balance off once per year, the lender may have the right to:
Call the loan due and to be paid in full immediately or face a declaration of default.
Raise the interest rate
Impose heavy penalties and fees.
Do they have the right to take some or all of the collateral? Can they liquidate any listed stock or bonds that were pledged? If so, how likely is it the lender may do this?
Will the lender liquidate assets fast or only if the borrower goes very far past due? These questions need to be asked. Borrower that pledged free and clear collateral such as real estate as security may have high risk exposure.
The borrower needs to consider the requirements if real estate is secured for the transaction. For transactions larger than $100,000 or more, the borrower must closely monitor their cash flow during the year.
Even for businesses that have high annual sales, coming up with a significant amount each year is challenging.
Consider your average monthly bank balance as an estimate of the most they can come up with to meet an annual payout provision. That amount is the maximum balance they should carry on their loan during the year.
To get funding without a landlord waiver closing stipulation requirement, apply below.
Lenders require landlord waivers to avoid or minimize losses for businesses with bad credit or slow pay as well as default on previous loans. Many business loans include collateral that is on the premises of the borrower. The landlord waiver allows the lender to enter the property and obtain the collateral in the event of a default. If the lender did not have a signed landlord waiver, they could not enter the place of business of the borrower to take their collateral. Landlord contact information will be ask for if this is required.
Without the landlord waiver
The lender cannot legally enter and repossess collateral. The owner of the property can seek recourse against any lender entering the premises without permission of the landlord. There are some business loans in which a lender asks for a landlord waiver but does not consider it critical for the loan. This requirement is one of the top customer complaints with business loans.
A lender normally considers a landlord waiver absolutely critical if they ask for it and will not fund a transaction without the waiver. Lenders worry that a landlord will refuse to allow them on the business property. If this happens, the lender may not be able to recover their collateral if there is a default.
Why do I need to get a Landlord waiver?
Example: In the vending industry
Lenders that finance multiple vending machines will not fund transactions without all of the required landlord waivers. Lenders that finance vending machines know that if they finance 10 vending machines, those 10 machines may be in 10 different locations throughout a metropolitan area. If the borrower defaults, the lender would have to go to 10 locations to pick up the collateral. They also cannot simply show up at a place of business to pick up collateral. They must also have to have permission from the owner of the property because they will be uninstalling equipment, which is considered making a change to a property. The lessee agrees in the lease not to make a change in the property without the permission of the landlord, so the lessee must contact the landlord.
What is a landlord waiver? Are landlord waivers required for a business loan?
In the event of a default on this asset based loan lenders do not want to contact 10 different landlords. Each landlord would have to agree to an on site repossession. The landlords know if they agree, those business that leases space from them may go out of business.
The landlord does not want the lessee to go out of business. The landlord may want to deny the request.
These are the reasons why lenders will ask for this when a business loan is first closed.
The SBA also offers info on small business and negotiating with landlords.
Video Description: Use Business equipment to get money for your business. Construction Equipment such as Yellow Iron, Trucks Rigs, Vehicles, and Trailers. Low credit scores OK.
We are a leading funding source for all Small Businesses looking for the best alternatives to Banks.
Author Biography:Will Sanio, Owner of SCF Funding, dba SmallBusinessLoansDepot.com, has a Bachelor of Science Degree in Business Administration with a concentration in Finance from the University of Tennessee, Knoxville.
Over 20 Years experience including 10 Years with Wells Fargo, formerly Wachovia Bank and First Atlanta Bank. Specializing in Traditional and Alternative lending.
Will Sanio: University of Tennessee Diploma – Bachelor of Science in Business Administration with concentration in Finance – Click or Tap to Enlarge Image.
Show Video Transcript
Loan against Equipment
Video Transcript: In minutes and seconds
0:00 Introduction
0:02 Make a List of Your Free and Clear Equipment
0:14 Provide Cash Flow Information
0:17 Match with a Lender that Offers Loans on Equipment
0:22 Apply
0:26 Gather required Documents and Close Transaction
[ desert wind whistling ] How to Get a Loan Against Equipment.
[ engine running ] Make a List of your Free and Clear Paid Equipment.
Get Pictures and Info on [ engine idling ] Vehicles,
[ engine revving ] Rigs and Semi’s, [ revving continues ] Pick Up Trucks,
[ pressure releasing ] Construction Equipment,
[ duck quacks ] Trailers and Other Equipment.
[ counting money ] The Lender may pay off valuable pieces with a low balance.
Provide your Last Few Months Bank Statements to show Cash Flow.
Match with a Lender that Offers Loans Against Equipment.
[ desert wind blowing ] Call and ask about Amounts and Terms.
Apply and Get Your Best chance for Approval by working closely with a Rep.
[ race car engines ] Close the transaction and Gather all Closing Items.
Proof of Ownership, Titles, Pictures or More.
[ water bubbling ] Low Credit Scores OK.
Finish by signing the Contracts and getting Funded.
Need more money than your Assets can get ? Get extra funds without putting up your equipment here using a bank statement loans option. Or just visit the bank statement loan video page here.
Qualifying equipment includes many types of construction and industrial equipment, business and commercial business vehicles. This includes tractor trailers, big rigs, commercial vehicles and semi -trucks. Is your truck down? Find out more about a truck repair loan here, or just watch the Truck Repair loan Video here. You can even get a loan on a trailer! Low credit scores down to 500 and below may qualify.
FAQ Frequently asked questions on a loan against equipment or vehicles.
What is a loan against equipment?
A loan on equipment lets businesses use the equipment or vehicles they own outright to qualify for a business loan. Borrowers can get a loan against construction equipment as well as tractor trailers and semi-trucks. Other qualifying assets include business vehicles and some types of machinery. The approval process is usually one or two days and the collateral stays on your property.
How much can I get?
You can get up to 60% against the current retail value of qualifying pieces. If your equipment has higher than market value, then provide documentation to prove the value from upgrades or customization.
How do put a value on the pieces?
Asset value data is used for each equipment type. The prices of comparable pieces on sale through industry leading vendors and suppliers may be used.
How old can my assets be?
Most trucks can be up to 8 years old. More than 8 years can still be funded with reduced approvals. Construction pieces and machinery can be older depending on the type, manufacturer, model and age.
Do I need to have proof of ownership?
Proof of ownership will be needed. Title, registration or bill of sale can be used for proof of ownership. Proof of purchase may also be needed and can be a paid invoice, loan or lease payoff letter, or bank proof of payment.
Can you take trucks or cars as collateral?
Free and clear trucks or cars including big rigs, semi trucks, OTR over the road tractor trailers, dump trucks, and vans may be used as security. Standard trailers such as big tex and gooseneck can be pledged. Cars, trucks and passenger vehicles may qualify if they are used partially for business.
Cnc milling machines, 18-wheelers, rigs, tractor trailers qualify. Machine tools may also bring significant working capital.
Construction equipment such as front end loaders, bobcats, skid steers, bulldozers, ditch witches, woodworking equipment, semi trucks, 18 wheelers, tractor trailers may also qualify.
Your business makes money by using equipment rather than owning it. Get the unused cash in your equipment and use it for cash flow in your business.
Business loan programs are open, approving and funding small business loans on construction equipment, some large machinery, commercial vehicles, big rigs, semi trucks, Over the road tractor trailers OTR, vans, dump trucks, and even trailers such as gooseneck trailers.
Submit the one page loan against equipment application and also the equipment list . Decisions are usually made in 1 day. Funding happens within five business days. $150,000 total funding is available.
Tell us the type of loan you are looking for. Callers ask for different types of loans, including a loan against construction equipment. Others ask for a loan on equipment using their construction assets. Some callers request a loan on machinery.
Underwriting reviews the age and condition of the equipment. Complete the equipment list. Use the most valuable and newest equipment on hand. Older equipment may qualify. This includes trucks and tractors. Through this loan against equipment, loans against a tractor-trailer is approved. It is also called a loan against an 18 wheeler as well as a loan against semi-trailer truck. Other products are a loan against a big rig, and loan against a semi truck.
Top 7 vehicles to get a business loan against:
1 Commercial Vehicles
2 OTR Over the road trailers
3 Big Rigs
4 Semi Trucks
5 Dump Trucks
6 Trailers
7 Vans
The following are examples of equipment and vehicles that can qualify under the program!
1. Cat 314ELCR
2. Cat TL943
3. Doosan DX 300LL-5
4. Ford F250XL and Ford F350XL
5. Ford F450
6. John Deere 225DLC
7. Kenworth T370
Thank you for visiting our loan against equipment resource page.
Will cash flow loans become as significant as traditional loans, including collateral based loans, in the future?
It seems so. Since the recession of three years ago, many business’s credit and the personal credit of the owners was hurt.
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Businesses needed working capital but banks were, and are still, balking at making loans to all but the most top shelf companies.
Loans based on the company”s cash flow, as proven by their bank statements and tax returns will become increasingly prominent in the industry. Companies which offer such loans will also come into existence in greater numbers and offer more diverse products to satisfy the increasing demand of these loans.
After all, many business owners wonder, if my credit has been hurt in the recent past, but my company’s cash flow is now excellent even if my credit has not caught up, why don’t you do a loan based on my proven cash flow? The answer, more and more, will be – Yes, we will
