This article covers 3 options on how to get a business loan when an account is overdrawn.
Apply for low balance programs below now that can get you approved if you have a current or recently overdrawn business account.
FAQ: How to get a business loan when an account is overdrawn – Frequently asked questions
Can I get a business loan with an overdrawn account?
Yes, there are several solutions for approval to get funding fast when your account is overdrawn.
How can we get business funding when our account has been overdrawn?
Occasionally overdrawn accounts are expected and can be funded. You are matched to one of several programs that fits your situation. How much and long your account has been overdrawn is reviewed and matched to the best programs.
How much can we get after being overdrawn?
Your sales in the current month and time in business are important in evaluating an offer. Average balances and sales in the last three months are also looked at. Programs consider low or no recent sales due to the virus.
3 Options for an overdrawn business account.
- Step 1 You can apply while your account is overdrawn, however it is best if you can make it positive during the application process. The processing may go quickly and a bank verification may be done before you have a chance to make a deposit and put the account into the positive.
- Step 2 Keep funds in the account until closing. The lender may check your account at anytime before closing.
- Step 3 Pass bank verification. The lender will verify your account, including the balance and also the most recent activity in the last few weeks.
Next steps when your business has already been declined
If one of the reasons your business is declined for a business loan request is your business checking account being overdrawn, it will be harder to get approved in the next 15 to 30 days. Many funding companies do not want to fund to a business that is overdrawn or has just been overdrawn on their business checking account. The minimum balance they want to see is at least $500, even if your account does not go overdrawn. Lenders like to see the average daily balance of the business checking account to be $2,000 or more.
The lender may tell you they will re-consider your request once your account has been in the positive for 30 days. You can do this, but most businesses do not want to wait. What can you do?
Apply with another lender
This may be your best choice if the account is now in the positive and the lender will not re-consider the request for 30 days. In this case, choose another lender and apply. If your account is still overdrawn it is best to wait until you can get it positive. Lenders will not fund if they verify balances and learn the account is overdrawn.
Other business loan options
Asset based loan
Another option is also a loan against equipment, also called a loan on collateral. This type of funding is between 24 and 48 months with a monthly payment. Equipment such as construction equipment and also semi-trucks may qualify. Trucks must be 2009 and newer.
Unsecured Options
Accounts receivables financing or bank statement loans to get capital. You may be able to get the capital the business needs this way.
Your main customers are likely factoring for other clients just like you and you are unlikely the 1st one they are factoring.
Contact us@ 919-771-4177 to discuss these approvable loan options, or apply above now.
