Declined for a small business loan because recent sales have been low? Are the low March, April and May sales months and bank statements keeping your business from getting funding? Many businesses are being declined for this right now.
There is a fix! Choose from several small business loans your business can get with revenue drops as much as 75%! Complete the secure application below.
Small Business Loan with low recent sales – Secure Docusign Or Call us at Tel: 1-919-771-4177
Many businesses have had low or no sales in the last few months because of the Covid-19 lockdown. Their many challenges include not being able to get financing.
Save your valuable time. Don’t spend weeks racking up hours and inquires applying with lenders and programs that are almost certain to decline your business. Apply with programs here that will lend even with much less demand during the virus. Get funded now. Apply above.
What are examples of declines in demand?:
March, April & May were much slower sales because of covid-19.
The most recent (3) months sales are looked at. The total deposits per month are reviewed to determine trends. Questions by the lenders include:
Is there a downturn? If so, how much? What were the customer’s average daily balances? Were they overdrawn with NSF’s and overdrafts?
50% or 60% reduction
Lenders look at how much of a reduction in business your business has had. How steep of a reduction, how quickly, how long and has the business started to recover? The main thing lenders will look at is the percentage sales drop. Any drop in sales over 25% is considered significant. Funding may still be possible with drops of 50% to 75%. If a business has had a major drop in sales and needs a larger business loan, then they can add real estate to back the funding and get a much higher loan loan.
Some segments of your business were strong while others had very low sales.
Example: A retail store’s overall sales in March, April & May were down 50%. In store customers dropped to almost 0 because of the lockdown. However, because their website offers shipping and delivery of products, online sales were up 75%.
How to get a small business loan in spite low recent sales?
– Make your case. Don’t just say business was bad. Say more.
Example: Explain why. You can say “We had a drop in business and purchases because of the virus. In spite of that, we are now open and sales are increasing”.
In the example above, provide the information when applying. Explain how it was not the fault of your business, and you still had sales that are now increasing, both positive current trends. This shows that your business overcame obstacles and is rebounding.
Have all the following questions already answered about the slowdown in business and provide them when you apply.
How bad has it been?
What is the situation now?
How has it affected your business?
What are you doing about it?
When do you expect sales in rebound and increase?
How can you show the business will survive?
FAQ Frequently asked questions on getting a business loan with low recent sales
What are slow sales?
When sales are less than normal for a specific time period. Lenders consider any reduction of sales of more than 25% to be a significant reduction.
How do lenders look at a major hit in revenues?
Lenders want to know why were sales low, and for how long? They also will consider if sales are expected to rise again and when? Lenders also look at the percentage drop in sales and whether the business can survive, still make a profit and pay all expenses.
How can I get a business loan when we are operating at 50% capacity?
There are several other types of financing a business may still be able to get. Asset based financing is the most likely to include using receivables, equipment or real estate.
My tax returns last year were good, so why did the lender decline
us for a drop in business?
The lender is most worried about the condition of your business now and in the future. When there is a recent big downturn without certainty of improvement, lenders consider this very high risk.