Missed mca payments? Take these steps now!

Missing one mca payment should not cause your business problems.   But what if you have more missed mca payments?   What can you do to avoid problems?    In this post we will talk about what you can do if you cannot pay  cash advance payments and the best steps to take.

First consider if you can get out of your merchant cash advances.    Paying off your advances or extend the term may be best.  Pay offs can be done through a longer term loan as well as asset based loans.     Contact us below to get started!

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missed mca payments
You have missed mca cash advance payments. What should you do now?

What can you do after missed mca payments?

Communicate with the lenders immediately.

Contact the cash advance companies right away. Do not think the problem will work itself out or that you will probably catch up in a couple of days. Communication is key. It is better if you contact them before you miss more payments. However, if you already missed a payment then contact the advance companies that day or the next day at the latest.

What do I tell the mca companies?

It depends on your situation. What is your cash flow situation right now?  Can you begin making the payments again right away? Figure out what you can pay, when, and how often.   Let them know what is happening with your business.    If you have a good reason for missing payments, tell them that reason.   If you can back it up with documentation, all the better.    Being proactive and communicating will be your best option at the beginning.

Can you start making payments again?

Call the cash advance companies even when you can start  making payments immediately. They still want to know why you missed mca payments.  That will help your case.  You may end up missing another payment later you did not expect to miss.   It is better if you are already on record as being in contact with the lender.

Missing consecutive payments

If you expect to miss more payments consecutively, then you want to decide if you can payoff the advances first. Paying off advances with another loan is better than continuing to miss payments.   You can choose from unsecured options such as a bank statement loan, and a large business loan if you need a lot.

Bouncing more mca payments.

If you know you cannot sustain your payments then paying off the advance may be the best option.   This is because missed payments will make it much more difficult for your business to borrow in the future and make this your worst option.    Many merchants would rather not take out a new loan.   However, if you are approved for a new loan that can payoff loans you cannot pay, you should strongly consider doing so.   Many businesses cannot even get approved for a payoff and don’t have that choice.

Payoffs

Paying off your merchant cash advances may be the best option.   But when is it better to payoff and when is it better not to?  It is usually better to payoff the cash advances when you know you cannot keep paying the current payments.   Paying the advance off with another loan works very well if you have less than 3 months or so left on the exiting advances. Taking out a loan to payoff a low balance is still much better than missing mca payments and defaulting.    You can avoid damaged credit, court action and trouble getting loans in the future.

When does it make sense to payoff one loan with another?
Example: A merchant has an advance with a daily payment of $100 and has a remaining balance of $3,000.  He has 30 payments left but he cannot keep making those last payments and will go past due and default. Before going past due the merchant is offered another loan for 6 months to payoff the $3,000. The new daily payment will be about $35 per day for 120 days.   The borrower can afford this easily.   Problem solved.   The business now has a payment they can afford and does not have to worry about paying the advance on time.

Payment plans after delinquent mca payments

Payment plans are best when the business can neither keep making the daily payments or paying off the advance. The cash advance company may be very willing to set up a payment plan. They will be able to get payments in full and the merchant will make the total sum of payments.   It is up to the lender to do this.   If your business wants to go this route then be ready to explain to the cash advance company why a payment plan will work for both of you.

Extending the term

Extending the term is usually similar to a payment plan. Sometimes it is more informal and the cash advance company will just let the borrower continue making payments past the term without a formal contract.  At other times a formal new contract will be written that replaces the old contract.    Expect the mca company to charge penalties, fees and more interest as part of the new contract.

Lowering Payments

Getting your mca cash advance company to lower the payments works best when your business just needs short term cash flow relief for a week or two. Your business may just have a brief cash flow problem it needs to work around.   Be aware that mca companies are not receptive to businesses calling in multiple times and asking to lower payments for a while.    It is supposed to be a rare request rather than one of convenience.   Some lenders may only do this once during the term of the contract.     If you think your business will need to ask for lowered payments several times then find a different option.

Pausing payments

A pause for one to three weeks may be all a business needs.  As with lowered payments, your business has to be sure it will be able to restart and continue payments when the payment pause is over.     You should not pause payments if you need a longer term permanent solution.    Sometimes businesses will ask to pausing payments when they know they will have a problem again when the regular payments start back up.   If this is you, then you should put all your efforts into solving the problem permanently on the front end.

Settlements after significant missed mca payments

A settlement directly with the mca cash advance company can be considered when other options will not work.  Settlements usually happen after a merchant has failed with a payment plan or lowered payments and not able to handle regular payments anymore.    It is a step before a default but still considered better than a default situation.

Beware of 3rd party settlement companies that tell you to put a stop payment on a merchant cash advance company.

We believe this is the worst choice in almost all cases.   Many settlement companies will tell you to do this to buy time for them to negotiate with the mca cash advance companies on your behalf.     However, they still want you to pay them a lot of money upfront before they start negotiations for you.    We believe this is a very bad idea for your business for several reasons.

Let’s break down why:

Your advance will be declared in default immediately when you put a stop payment on them.  You certainly will not want to even consider this if you have not read your MCA contract in detail.   The contract will tell you all the actions the advance companies can take when you put a stop payment on their daily Payments.  Putting a stop payment on a merchant cash advance will definitely result in the strongest response against you by the mca companies.   If they have a coj, then they will file it against you almost immediately.    The settlement companies telling you to do this do not have to deal with the problems you will have! Do not do this!

Beware of companies that tell you to close your business checking account

MCA companies will react in about the same way as when you put a stop payment on their daily payment. They usually consider closing your business checking account as an intentional default.

What is an intentional default?

An intentional default happens when a borrower takes an intentional action not to make good on the contract.  This is almost always combined with little or no communication with the cash advance company. Lenders think of the borrower as trying to evade an obligation and contractual promise to pay. Worse, their contract usually includes specific language that talks about what actions and remedies they can take if the borrower closes their account. We believe this is a bad option for almost all borrowers. Contact us above for much better options!

Defaults

Defaults are the least desirable option.   The lender has declared that they are taking a loss on the loan.   The worst adverse action has already been taken against the merchant, which may include filing a coj confession of judgement. All efforts should be taken to avoid a default on a cash advance.
If the mca company has a coj confession of judgement, they can have it enforced through a court in one or two days.    Sometimes they can have it affirmed by a court the same day.

What can the cash advance company do then?    They can have the sheriff contact any bank they wish and demand that the bank verify if your business has a checking account there.   If so, the cash advance company can debit all the funds out of your account.

In conclusion

The tips above can guide you on how to handle specific situations with cash advance payments. If you continue to struggle with debt long term the National Foundation for Credit Counseling, NFCC can help with budgeting and strategic long term debt planning.

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FAQ Frequently asked questions on missed mca payments

I missed an mca payment. What can the merchant cash advance company do?
If you have only missed one or maybe two payments then the mca companies are unlikely to
take any other action besides trying to contact you. If you have not talked with them yet then contact them
immediately.
My cash advance company has threatened to take action against me for missing payments. What can I do?

If your mca company has threatened to take action against you it means they probably have not done so yet. You still may
have an opportunity for a good result. Look at what you can pay and consider offering to make that amount of a payment to them.
If they refuse then put your offer in writing and email it to them. This may work strongly to your benefit if there is future court action against you. It demonstrates that you communicated with the cash advance companies. You attempted to work out a solution and still fulfill your obligation to them based on your worsened financial situation and they refused. Whatever your outcome ends up being, this action should put you in the best possible position later.

I don’t want to talk to the mca companies. They are very aggressive, rude and threatening. Why should I talk to them?
You should talk with them because if you don’t they will take action against you. They may be able to put a freeze on your business
checking account or block your account. You will not be able to use your business checking account if they do that. That will
be the worst result for you and your business. Talk to them to see if you can come up with a solution.
My cash advance company said they can lower the payments or pause the payments. Which one is best?
Pausing the problems is best when your business has a short term cash flow problem for two or three weeks but
will be able to begin making the payments again after that. Lowering the payments will be best if your business is going
to still have trouble making the regular payments later. If you cannot make the regular mca payments later then it is better
to try to get the payments lowered long term until you have paid off the contract.
I have some delinquent mca payments right now. Should I payoff the mca payments or try to work out a compromise?
Payoff the cash advances if you are able through another loan when you cannot keep making the daily payments and know you will probably default. When you have the cash flow to keep making a lower payment then it is best to try to work out a compromise with the lender.
A settlement company wants me to close my business checking account so that the mca companies cannot debit any longer.
Is this ok to do?
You should not close your business checking account to stop daily mca debits other than in some rare cases. Closing your account
automatically causes you to be in default.
I missed some daily mca payments and the advance company is telling me I am in default. Can they declare me in default?
If the contract says missing a certain number of payments puts your account in default and you missed that number of payments
then they can declare you in default. Negotiating the best possible outcome is almost always better even if you have been
declared in default of an mca. By communicating with the advance company you usually get the best possible outcome for
your business. In some cases when you do not have the cash flow to work out a payment plan then you may have to consider
other options. Contacting a business attorney that specialized in cash advances may be your best choice in such a case.

How can I get out of multiple advances

What are multiple advances?

When a business has more than 1 cash advance, they have multiple advances .  Does the example below look like your business?:    

A business has three mca positions:
# 1:   Balance of $20,000 with daily payments at $333 per day.
Merchant has 60 business days left or approximately 3  months.
#2:    Balance of $10,000 with daily payments at $166 per day.
Merchant has 60 days left or 3 months.
#3:  Balance of $5,000 with daily payments of $83 per business day.
Merchant has 60 days left which equals 3 months.

If your business has advances from stacking, complete the secure 30 second application below to rescue your business today!   Get payments now you can afford that will not hurt your business, or credit or reputation.
Several options to reduce your daily and weekly cash flow for advances and longer term options such as weekly and monthly payments.

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How you can get out of multiple advances.

  1. Add up and know your total daily, weekly and monthly payments on the advances as well as how much longer you have to pay on them.   Also get your total payoff balances.    Know your approximate credit score.
  2. Search for lenders that either payoff or restructure your debt as earlier options.    Funding programs that recommend you close your business checking account or negotiate a settlement hurt you the most and should be your last possible options.
  3. Choose a program that best matches your business profile for your amount of debt, ability to pay and urgency for a fast loan on any new program that allows you to get out of your advances.
  4. Talk to a representative of the program.   Tell them about your business and ask them about their underwriting criteria.   Try to assess what your chances of approval or being declined are for each program.   Once you find the best matching program, then apply.
  5. If approved, review the terms of the approval.   If you are satisfied, close the transaction.
  6. Receive funds into your business account and begin repayment with improved cash flow.

We have excellent programs with a high approval rate to fix your multiple mca multiple positions problem.  Almost all businesses can improve their cash flow.   Take actions before you have missed mca payments.   before you have missedApply above or contact us at Tel: 919-771-4177.

Get out of multiple advances today
If your business has several short term advances, contact us and get this solved today.

FAQ Frequently asked Questions:

How can I get out of these without missing payments or defaulting?
You can either pay them all off through a consolidation or refinance them and extend the term several more months. You may qualify to extend the term for up to 10 years.
How much lower can you get my Payment? I need to reduce my payment by half or more. Can you do that?
We have programs available that can reduce your payment between approximately a third to more than half. In some cases your payment can be lowered as much as two thirds.

There are links to several other financing options below and also helpful articles.  Review funding program details below.    We offer free consultation because we want your business to succeed.

How to get a real estate merchant cash advance

What is a Real Estate Merchant cash advance:

A business loan with short term daily or weekly repayments using real estate as collateral.   The real estate may be commercial or residential.
One of the closing requirements is residential or commercial real estate with enough equity in the property to cover the amount of the loan.  As stated, the Business Owner can offer:
– Commercial real estate
– Residential Real Estate
– Raw land in some cases
If you do no have the real estate needed for a real estate merchant cash advance, then  contact us below at SmallBusinessLoansDepot.com for several funding options such as bank statement loans that do not require real estate.

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What can you do if you don’t have any real estate?

Sometimes Business Owners do not have the real estate that is required to close this type of a business loan.
What other ways can you get a business loan?  What is the lender is asking for?

Real estate will not be required for other funding options such as a
asset  based loan, and accounts receivables financing.

How to get a real estate merchant cash advance:

    1. You must have property that has at least 50% equity or more.
    2. Tip: Higher loan requests over $50000 and land with a value over $100000 will work better.
    3. Do a search for lenders that offer business loans or mca merchant cash advances using real estate as collateral. Review the features and benefits and find the program that best matches your situation.
      Do a search for lenders that offer business loans or merchant cash advances with real estate as collateral.
      Search for lenders that offer business loans or mca merchant cash advances using real estate as collateral.
    4. Contact the funder. Discuss your request and business profile with a representative. Try to prequalify and find out how likely your business is to meeting approval requirements.
      Contact the funder. Discuss your request and business profile with a representative.
      Call the funder. Review your profile with a representative to see if you may qualify or prequalify.
    5. If you prequalify consider applying and submit an application and required information. After an approval review the approval terms and conditions.
      If you prequalify then consider applying
      Once you have determined that you prequalify or have an excellent chance of qualifying then consider completing and application.
    6. Complete the transaction when satisfied with the terms and closing requirements.  Provide any closing stipulations required. Receive funding into your business checking account.
      Small Business Loans Depot
      Small Business Loans Depot

    Learn more about real estate backed loans:
    Recent examples from the web: 

    FAQ Frequently asked questions on how to get a real estate merchant cash advance

    How can I get an mca cash advance using real estate?
    The amount of the loan or mca merchant cash advance is usually higher if there is equity in the real estate. The cash flow of the business and amount of monthly deposits is important. The approval amount is increased because of the value of the real estate and equity it has.
    We have several cash advances and are suffocating in the debt. We have equity but need help immediately. Can you help us immediately or will it take weeks?
    You can get funding to payoff your advances fast with this program. It typically does not take weeks as with a traditional real estate. Funding can be as fast as several days or one to two weeks.
    Why do I have to use real estate to get financing that is basically cash advances?
    You do not have to use real estate to get cash advances and it is not required. If you qualify to get a regular unsecured mca merchant cash advance then you can do so. This is an additional option that may allow your business to get approved instead of being declined. It may also allow your business to get approved for a higher amount of financing using real estate instead of unsecured.
    Can we get longer cash advance terms by using our real estate?
    Longer terms are often 1 year and sometimes up to 2 years. This is longer than a regular merchant cash advance. An offer you may received with a term of 1 to 2 years with real estate would have probably been a 6 to 9 month offer without real estate.
    Does the property have to be free and clear?
    The real estate does not have to be free and clear. It only has to have enough equity in it collateral wise.
    Can I payoff all of my cash advances and other debts and get cash also?
    If the cash flow of the business qualifies along with any equity needed then you can get enough to payoff all business cash advances along with other debt. You can get the remainder in cash to use for any reason your business needs.

    Below you can consider other financing options. Review funding program details below.

How to get an MCA Merchant Cash Advance after a default

Did your business default on an mca merchant cash advances in the past? If your business wants to get a cash advance again, consider new program options here.

Some businesses that have defaulted on one or several mca cash advances in the past decide they want to get advances again because they now understand the amounts and daily payments they can handle and make.  Programs are also available for businesses that have missed cash advance payments, or have had delinquent or lapsed  payments.

If your business wants mca merchant cash advance funding after a previous nonpayment, several new programs and options are available. Complete the 30 second application below.
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How to get another MCA Merchant Cash Advance after a default

Step 1: Research companies online that offer merchant cash advances to businesses that have a previous default on an mca cash advance. Closely review restrictions for terms and conditions of approval.

Step 2: TIP – Repayment of a previously defaulted merchant cash advance as well as the amount of time since the default may affect your ability to be approved under different programs. Ask if there is a minimum time requirement since the cash advance default.  Know the month and year your business first officially defaulted and the amount of the default. Default reporting drags on time wise in business and personal credit reports and makes it look like the default was much more recent than the original date the merchant cash advance company declared a default. Any payments you made on the default often do not appear on the business and personal credit reports a lender looks at and you will not get credit for any payments made. Provide documentation of the payments made.

Step 3:  Select the programs that your business will most likely qualify for.

Select the programs that your business will most likely qualify for.
Decide on the programs that your business will most likely get an offer from.

Step 4: Make contact with these lenders that fund with previous defaults. Try to verify how likely your business is to meeting the funding program conditions and requirements.

Make contact with these default lenders that fund with previous defaults.
Contact mca default lenders. Apply here to begin.

Step 5: Submit an application for funding. Provide all documentation you have that improves your chance for an approval. Provide documentation that proves the time since the default and if any payments were made.

Submit an application for funding.
Apply and provide any documentation that show how long it has been since your business originally defaulted on the mca merchant cash advance.

Step 6: If approved, review terms and conditions. Rates and terms will not be as favorable for some time on your advances after defaulting.

Small Business Loans Depot
Small Business Loans Depot
Alternative funding for businesses
Small Business Loans Depot

FAQ Frequently asked Questions on getting an mca merchant cash advance after defaulting

Why will most cash advance companies not fund me after a merchant cash advance default?
If your default was within the last two years, almost all cash advance companies believe your chances of going past due again are too high. Lenders want to see an extended period of time after a default before giving your business funds again. That often is two years. A few programs will consider funding again after approximately six months. The amount of time may be shorter based on your businesses situation.   Does your business generates over $50000 per month in revenue?   Then it will be more likely to get another cash advance sooner after a default.
Can I get a merchant cash advance after a default?
Yes. In about 6 months after a default your business may be considered for another cash advance and other types of financing. Approval depends on how well your business has recovered and also how much revenue it now has per month.
How long after a default can I get another cash advance?
Your business can be considered for another cash advance and other funding types 6 months after a default.  Keep good records and documentation on the exact time you were formally declared a default by the previous cash advance company.
How do I know if I defaulted on a cash advance in the past?
You should have received correspondence through the mail or email or by telephone that your delinquent cash advance was declared a default.
What if I did not repay any of the the defaulted cash advance?
It may be easier to get another cash advance if you repaid or settled the defaulted cash advance. This is because future lenders would rather know that your business made an effort to repay some of the advance or tried to reach a settlement to pay a lower amount to try to satisfy the debt.
Can I get more if I repaid the merchant cash advance that I defaulted on?
The dollar amount of a future advance after a default depends more on your current revenues and situation rather than if you repaid the merchant advance you defaulted on.  Partially or fully repaying a cash advance after a default will  play a bigger role on whether you will be approved or declined.
I defaulted on more than 1 cash advance. Can I still get another mca cash advance?
Yes. You may still be able to qualify for a new advance. Approval depends a lot on how many advances you had as well as how long it has been and the total amount you defaulted on.
Does it matter how much the amount of the defaults were?
The amounts of the defaults do matter and will be looked at along with other things such as how much revenue your business is making now.
I am still in collections on my old merchant cash advances. Can we still be approved for funding?
Yes, your business still has a chance to qualify for more funding. Provide the details of the collection activities and they will be reviewed.
I am still negotiating with attorneys on my previous defaults. Can I still qualify for a new advance?
Your business may still qualify for a new advance if you are still negotiation on your previous defaults. Collections and negotiations on old defaults and non payments can go on for months or years. Any repayment or settlement will be looked at along with how much time has gone by since the original default.
I paid a settlement on a merchant cash advance instead of defaulting the entire amount. Can I show a settlement letter and get another business loan or advance sooner?
You may be able to get another business loan or cash advance sooner if you paid a settlement instead of the full amount. Defaulting on the full amount of the mca cash advance is the worst way to go. Paying a settlement shows that your business made effort to pay money that was owed and that your business was still profitable enough to pay a settlement amount rather than a total default.

How to prove your business address and business location

Definition of business location.  What is proof of business address?

Proof of business location are documents provided that prove the physical address of a business.   What can a business owner show as  proof of business location or proof of business address?   Learn which documents you can use to prove to prove the business address or business location, and how to get them.
Common problem:  I can’t prove my business address or business location.  Contact us or apply below today.   We are experts and can easily show you how to prove business address and business location.   You will learn what the easiest and fastest way is to show proof of business location for your business.
Examples of proof of business location and proof of business address.

A business owner applies for a small business loan and is approved.
Closing requirements almost always require the owner to provide documentation of proof of the address of the business, or location of the business.  There are several options in showing proof of business address.

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The business owner can submit any of the following because almost all are accepted.

  1. Business rental lease agreement, or a copy of the business rental lease agreement.
  2. Mortgage statement showing the business address.   If the business purchased the real estate through a commercial real estate loan, then a current mortgage statement can be provided.
  3. A current business license if the business address has stayed the same since
    the business was established and the original business license was obtained. An option a  sole proprietor can provide is a business license or a schedule C.
  4. Articles of Incorporation or a partnership agreement that has the same address on it.
  5. The most recent business tax return if the address is the same as the address of the business loan application and approval.

How to prove your business address and business location

Step 1: When making any request or application in the name of your business, review in advance what may be required to prove your business location or business address.

Step 2: Tip: Gather information you have on your business location and business address in advance.  Have the items available or make a list to discuss.

Step 3: Do business with companies that will accept the proof of business address that you have, or can get.

Do business with companies that accept the proof of business address you can provide
Narrow down your list of businesses you will do business with to the ones that accept the proof of business location that you can provide.

Step 4: Make contact with funding programs and confirm your business address information will be enough.

Make contact with funding programs and confirm your business address information with be enough.
Try to confirm ahead of time that the business address information will be satisfactory.

Step 5: Submit a request or application.

Submit a request or application.
When satisfied you will meet the requirements, apply.

Step 6: If you receive an offer, first review the terms including the items required to prove the location and address of your business. If ready to complete an offer, submit the required items. Get final questions answered before closing. Finalize the transaction.

If you do not have, or cannot provide the types of documentation for proof of business location or business address,   contact us below.   We can guide you, and give you tips on how you can get proof of your business location.

You don’t have any proof of business location and don’t know what to do and how to get it?

Sometimes business owners cannot prove the address of a business that is required to close a business loan.
How to prove business location.  Are there other ways?  What is the lender asking for?  There are other options in addition to the ones listed above.
If you cannot prove your business address now, review your options and fixes below:

How you can fix the following problem:   “I can’t prove my business address and business location.”

  1. Get an updated business license. Your city or county can reprint or resend a copy of your business license that shows the updated business address.  If the city or county shows a previous and outdated business address, then provide the current address before requesting a reprint of the business license.
  2. Review the address at the secretary of state to see the current business address and business location listed.  If the current business address is wrong, contact the secretary of state and update the articles of incorporation to update and list your current address.

Remember:  Evidence of your business address and business location is often required for small business loans.  The person applying in the name of the company has to be able to prove where the business is located.   This prevents mail correspondences from going to the wrong address and also helps prevent owners from making changes without the knowledge of the other owners.

F.A.Q., Frequently asked Questions:

The following are frequent requests and statements:

Question: How can I prove my business address?   I don’t have proof of my business location and cannot provide it.   What can I do?

Answer: Find and provide either a copy of the business lease, rental agreement, business utility bill, mortgage statement, business license or articles of incorporation.

Question: I’m having trouble getting proof of my business location. The lender will not accept my website as proof of business location. What should I do now?

Answer: If you are close to an approval, ask the lender for all the options they will accept to provide the location of your business. The lender may accept more for proof of business address than what they are saying.   If you are still having trouble, contact us. We can provide information on you will need to get what are want – “Proof of my business location” and “proof of my business address”.  You can apply with us for a small business loan.  We have the expertise to best solve this problem.
Examples of what generally will not work for proof of address:
  1. Virtual office address
  2. P.O. Box: post office box
  3. Address to a vacant lot
  4. Raw land
  5. Address to a physical location that does not have a building or structure on it
  6. An out of state address.   This happens when the business is located in one state but a business address to a different location or another location in another state is provided.
  7. When the business address is in one state and the owners home address is in another state.   This is referred to as an absentee owner or out of state owner.

There are exceptions to some out of state owner situations.     If the business address is on the border of one state and the owner lives within a reasonable distance in a neighboring state.    A business owner that lives less than 50 miles from their business is usually acceptable.  Examples are a business that is listed in Kansas City, KS, and the owner lives in Missouri.    Other examples are a business in Chicago, IL, and the owner’s home address is in northwest Indiana, less than 50 miles away.

How to get a very low fico credit score business loan

Get a very low credit score business loan.

Business loans with very low credit scores.   Credit scores below 500 and as low as 383 are considered for a small business loan.  This low fico credit score business loan program is a good match for below 500 and sub 500 credit bureau fico scores for small business loans.

Many programs do not offer small business loans with the owner’s credit score below 500, or have limited offers.    Get up to $150,000 in business funding with credit bureau and fico scores below 400 and down to 383.   Business funding is based mostly on the revenue of the business, not the credit score.

Contact us below or first read the “Howto” section steps, direction and tips to getting low fico credit score business loan and also other business financing and then apply below.   so call us. We will be happy to discuss your situation first.  Almost all callers will find out if they have a strong chance for approval after calling in.

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How to get a very low fico credit score business loan

Step 1: Research companies that have low fico credit score business loans as main programs.   Review minimum funding amounts, rates, features and benefits and processing time from application to completion.

Step 2: Tip:  Prepare explanations or documentation for any unfavorable or incomplete information in your business profile.   This can be slow business periods or limited information on your business.

Step 3: Choose the program that most fits your very low fico credit score and overall customer profile.

Choose the program that most fits your very low fico credit score and overall customer profile
Pick the program that you think is going to be the best match for your business.

Step 4: Make contact with funding programs and confirm your business criteria meets minimum funding program requirements.   Discuss amounts with the lender representative.

Make contact with funding programs and confirm your business criteria meets minimum funding program requirements.
Contact the lender and talk about whether your business meets the requirements.

Step 5: Submit an application for funding.  Provide documentation you have that improves your chance for an approval, higher offer amounts and better terms.   This can include financial statements, additional bank statements or tax returns.

Provide documentation that improves your chance for a higher offer
Get a higher offer by submitting documentation that shows your business to be stronger.

F.A.Q., frequently asked how to get a very low fico credit score business loan questions.

Question: Can I get a business loan with a credit score below 500?
Answer: Your business still has an excellent chance of qualifying. If your business has the cash flow and revenue to make the payment then you may qualify.

Question: I am a business owner and have a very bad credit score under 500. It could be as low as 450 or lower. Does my business still have a chance to get funding?
Answer:
Your business still has a good chance to get funding. The reasons for the low credit score will be looked at to see what is happening right now on your credit bureau. The score is usually not the reason for any denial.

Question: My credit was hurt and severely damaged due to a divorce. Does that disqualify me from a business loan?
Answer: This program is focused on the ability of your business to pay and not on credit.

Question: How can I get a business loan with charge offs and tax liens on my credit?
Answer: Your business can still get funding with the owner having charge offs and tax liens. Programs that your business may still qualify for include funding based on the monthly business deposits as well as the assets of the business. Funding based on the assets can be based on the accounts receivables of the business or the real estate or equipment.

Question: How low can my credit score be and still get a business loan?
Answer: Your credit score can be as low as 383 and still have a chance to qualify. If your business has revenue and cash flow and assets then it still has a good chance to qualify. There are many ways for your business to qualify than just the credit score.

Question: I have a business and have bad credit but am only a 50% owner. Can the other owner with much better credit apply instead?
Answer: Yes. Apply using the other owner with better credit and a higher credit score. If more than 50% ownership is needed then you can be added as the second owner.

Also consider other financing options.

Review funding program details below.

How to get same day and next day business loans

How to get same day business loans and next day business loans.  The following are steps, direction and how to tips.

Search online for lenders that specialize in getting a business loan the same day you apply. Consider reviews if available.

Read program requirements to determine if you qualify to get a business loan the same day or the next day. Verify they are not payday loans or title loans.

After reviewing, make a list of the top two or three funding programs that best match your business.

Pick the top programs that match your business.
Make a list of the top two or three funding programs that best match your business.

Contact those funding programs. Verify features, benefits and requirements with a representative. Ask if there are cut off times or deadlines during the day for providing information, documentation, or other stipulations.

Contact those funding programs. Verify features, benefits and requirements with a representative.

If your business meets the requirements, consider applying for the program that best aligns with your business.

If your business meets the requirements, consider applying for the best matching program

On any offer made to your business, review the terms with a representative. Before closing, verify with the representative that you will be funded by the day and time of day your business needs to receive funding into your business account. Confirm that funds will be wired by a certain time and that your bank immediately credits incoming wires into your business account. Complete the transaction and receive funding.

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F.A.Q.:  Frequently asked same day and next day business loan questions:

How fast can I get funding for my business?

Application to funding for your business can be as fast as three or four hours

How do I know for sure I will get a business loan the same day or the next day?

Ask your representative for specific details. Ask about cut off times and deadlines for business being funded the same business day or next business day

I wont need the money if I do not get it by a certain day. What if I get the money for my business too late?

Ask if you can return the funds and cancel the contract if funds are not sent out by an agreed day and time. If the lender agrees to void the contract, try to get the agreement in writing. If you do not get it in writing, then you will have to decide whether to accept a verbal promise.  Some programs are automatically set up by law to allow you to return funds or cancel the contract up to 72 hours after closing. it is called right of rescission. This can vary by lender and by state.   If you rescind the contract you must return all of the funds by that deadline.

I did not receive my business funding through ach or wire yet. What can I do?

contact your bank.   Find out what their rules and regulations are for incoming Ach and wires. How long does it take them to process and credit an ach or wire once it is received. ask if an incoming wire goes directly into your business account or if it first goes into a general wire account at your banK?   Does your bank have to transfer funds from a general wire account into your business checking account?  How long does that take?
What do I need to qualify for a business loan?
Strong and increasing business revenue as well as good personal and business credit are the most important factors needed to qualify for a business loan. Other factors to qualify for a business loan often include time in business as well as business assets available for collateral if needed and amount requested.
How much do you have to put down on a business loan?
Down payments range between $0 and 10% down on business loans. Mca merchant cash advances do not require money down. Business loans to obtain equipment usually require 1 or 2 payments down at closing. Some business loans may require 5% down depending on the purpose of the funds. Down payments cannot be debited from proceeds.

Get money to pay IRS business taxes today!

Does your business need money to pay IRS business taxes?    Funding programs are available that cover federal IRS taxes, state taxes and local taxes.     The money can also be used to pay quarterly tax payments , OIC offer in compromise settlements, and income tax settlements.

Contact us below or follow the “Howto” section, steps and tips on how to get funds to pay business back taxes here:
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Call us at Tel:  1-919-771-4177, or Question? 

How to get money to pay IRS business taxes:

Identify business funding programs that offer money to pay IRS Taxes, including business back taxes, tax liens and OIC, offer in compromise, and tax settlements.

If your business has the cash flow, select programs are available to satisfy the need to pay your specific tax debt.  Tax debt and liens of all amounts are usually considered by these specialty programs.  Some may require additional collateral such as real estate, listed stock, or other collateral that covers the amount of the tax debt.   Open tax liens over $10,000 are more difficult to get funding for without collateral.

After evaluating, choose the program that is most likely to provide the funding needed for your business to pay and satisfy the required tax debt.

Choose the program to pay business tax debt
Choose the program to pay business tax debt

Contact the lender.  Check features, benefits and program requirements.  Ask about restrictions, including what is needed for approval and closing.

Check features, benefits and program requirements
Check features, benefits and program requirements

When you determine your business meets the requirements, apply for funding.

When you determine your business meets the requirements for a loan to pay business taxes, apply for funding.
When you determine your business meets the requirements for a loan to pay business taxes, apply for funding.

For any offers made, review the full terms and determine if your business can make the payments.   If so, provide the items needed by the funder to close the transaction.

FAQ Frequently asked questions on how to get money to pay irs business taxes and business back taxes.

Can I get a loan to pay my business taxes?

You can get a loan to pay your business taxes. Get an unsecured loan to pay your business taxes through several programs with terms between 2 to 12 months. With a good credit score you may be able to get up to 60 months and up to 120 months in some cases. Other programs to pay business taxes are based on the sales of your business. More loan options to pay your business taxes include asset based against commercial or residential real estate. Programs are fast funding and the business can usually get funds within days.

Can I pay my business taxes late?

You may be able to pay your business taxes late. File an extension on your business taxes and pay as much of your estimated taxes as you can pay. If you do not know what your estimated taxes are you can file an extension before april 15th and complete and then pay your taxes by October 15th. Interest and penalties may apply. In some cases you cannot pay your taxes late. If you have filed an extension already you must pay all taxes due by October 15th of the same year. Contact a cpa for confirmation of your situation.

Do I have to be in a payment plan to pay back business taxes?

If you cannot pay the amount of the back business taxes plus interest plus penalties then you will need to get a payment agreement with the IRS or state for state taxes.

Do I have to provide information on the IRS payment plan to the lender?

When you or your business has an IRS or state payment plan it is better to provide the payment plan documentation.   Doing so may help you secure the funding you need. Provide information on an OIC offer in compromise if you have that.

What if I have an open tax lien?

Programs are available to allow your business to payoff or settle an open tax lien if approved. Approval depends on the amount of the open tax lien as well as the cash flow of the business and the owner’s credit score. Other factors include the average daily balance of the business as well as the time in business and assets of the business and owner. .
If the cash flow and revenues of your business show that you can handle the payment amount needed for funding to payoff the open tax lien, then your business has an excellent chance of being approved.

How long does it take to get funding?

Processing time from application to funding on approvals is usually 2-3 business days. Time to funding may depend on how many tax liens you have and if there are state and federal tax liens.

What if I have an IRS tax lien on my credit already?  Can I get funding to pay the IRS if there is a lien listed on my credit bureau?

Having a lien on your credit is usually not the deciding factor. You still often have an excellent opportunity to get money for your business.  The cash flow of the business and being able to show documentation on the lien is more important. The information from the IRS or state on the lien will provide all the details needed on the lien.  There are programs that will payoff irs or state back taxes directly with a lien on your credit report. The lien can be on any bureau report including Equifax as well as TransUnion and Experian.  The owner can use the funds to pay off and satisfy or settle the lien.

Is the tax lien paid off at closing or do I payoff the IRS or state tax lien myself?

This depends on the program.  In most cases you are funded into your business checking account and payoff and satisfy the IRS or state tax lien yourself. A requirement for closing your business loan may be to provide documentation on the lien so funds funds can paid to the IRS or state directly.  This applies to IRS tax liens as well as state tax liens and real estate taxes.

Do I need collateral for a business loan to pay back IRS taxes?

You do not have to have collateral to try to qualify for funding to pay IRS business taxes with many programs.

If I file an extension can I still get a loan to pay business taxes?

Yes you can still get a loan to pay business taxes even if you file an extension. The extension allows to to pay by October 15th of the same year. If you pay the amount owed by October 15th of the same year then it does not matter whether or not you get a loan to pay the business taxes owed. You are supposed to pay the estimated taxes owed by tax day which is usually April 15th. If you have not completed your taxes then you may not know what your estimated business taxes are. Pay what you can and then pay the rest by the extension filing deadline of October 15th.
If you do not qualify for programs that do not require collateral there are programs available that use commercial or residential real estate with equity. Other programs may use equipment owned outright such a construction equipment or tractor trailers. The equipment must be free and clear.

How to get a used car dealer business loan


We specialize in fast approval funding for used car dealers. Programs include small used car dealers such as buy here pay here lots. Other programs for larger car dealers and newer dealerships. Apply below
How to get used car dealer loan:

Find lenders that offer a used car dealer business loan
Secure DocuSign 30 second used car dealer business loan application here
Call us at Tel:  1-919-771-4177, or Question? 

If your used car lot has more than $15,000 per month in revenues and bank deposits, then your business has an excellent chance to be approved for a used car dealer loan

Select the program and approval requirements that best matches your business profile

Ask the representative what their approval requirements are for that program. If your used car dealership meets those approval requirements, apply for funding

Complete application and provide any additional documentation requested to show business revenues, like bank statements or financial statements

Review approval terms and closing requirements. Submit the items requested. Complete closing and receive funding into your business checking account

Used car dealership loan
Used car dealer loan financing

F.A.Q. used car dealer loans

What types of car dealer loans are available?

Buy here pay here used car dealer loans,  new car dealer loans , specialty car dealer loans, luxury car dealer loans, exotic car dealer loans and short time in business car dealer loans, and new used car dealer loans.  Newer programs include small car dealer loans, auto sales loans, used car lot loans, and longer term used car dealer loans.

What are the rates for your used car dealer loans?

Rates depend on the time in business, the cash flow and credit. Rates start in the low teens on up

How long does our car lot have to be in business?   We have only been open 5 months.

Your Dealership needs to have at least three months time in business and 3 months business checking account statements to pre-qualify.

My credit is bad.  How much does credit matter?

Credit scores are a minor factor.   Credit scores can be as low as 383.

We are a small used car dealer.   How much can we qualify for?

The amount you can get depends mostly on the average daily deposits.   Most offers are between 35% and 75% of average monthly deposits.
as an example we can calculate the following:
ABC Auto Sales has the following total monthly business checking account Deposits:
July business checking account Deposits =    $30,000
June business checking account Deposits = $20,000
May business checking account Deposits  = $25,000
Based on the mathematical formula first add each months deposits and get a total.
$30,000 + $20,000 + 25,000 = 75,000
So it follows that:
$75,000 % 3 = $2500.

If an offer is 50% of monthly deposits then:
$25000 X .50 = $12500.
Therefore a typical offer with these numbers would usually
be approximately $10000 – $15000.
Because this is the average offer the maximum and minimum expected offers can be calculated.
The maximum expected offer is calculated as $25000 X .65 = $12250.
The minimum expected offer is calculated as
$25000 X .35=$8750.

We sell our used car dealer notes.  Does that matter?

Selling notes does not affect an offer amount because notes are future income.   offers and approvals are calculated using the most recent cash flow.
If the car lot has been selling notes for some time then the recent cash flow already takes that into account.

Our dealership specializes in exotic cars.   Can we still get financing?

Yes.  specialty used car dealers fall into the same used car dealer business loan funding program and are not restricted.

Can we use this financing to buy more cars?

Yes.  The working capital can be used to buy cars at auction or anywhere your dealership wants to buy cars from.   You can also use the loan proceeds.  For example, you can use the proceeds to buy cars from wholesalers and customers.

Do you have longer term used car dealer loan programs?

Yes.  One used car dealer loan program offers terms up to 10 years.   This program is only available in certain states. Ask if your state is in the program.

We want to buy a lot for our used car dealership.  Can we use this financing for that?

Yes.   This financing can be used to buy real estate as well as a building, including repairs and improvements.
How long does our car lot have to be in business? We have only been open 5 months
Your dealership needs to have at least three months time in business and 3 months business checking account statements to pre-qualify
We need a loan for our used car dealership fast. Can we get one in a day or two?
Yes, you can get a loan for your used car dealership within one or two business days. Same day funding is possible in some cases. This is also for buy here pay here lots and new car dealerships.

We hope our “How to get a used car dealer business loan” tips and direction have been helpful.    Contact us with questions.   Fast turn around and quick funding.