How to Pass a Bank Verification for a Business Loan:
How to Pass DecisionLogic bank verification (Video Transcript: Click to Expand)
or Decisionlogic to get a business loan or a Cash Advance. Will Sanio, SmallBusinessLoansDepot.com. Today’s Video: How to pass a bank account verification to get money for your business.Start the process anytime by Tapping apply on the Bottom right of this screen, or tapping on the end screen of this Video, or on the Apply Button on the Webpage.
Step 1: Total Deposits:
[ woman counting bills ]Look at the total deposits into your business checking account for the current month. You want the dollar amount to be on track for the current month or not more than about 25% less than the average for the last 4 months.
Step 2: Minimum balance:
Know the minimum amount you need to have in your account at the time of the bank verification or decision logic. Often it’s a multiple of the payment, either daily, weekly, bi-weekly or monthly. Example: If your payment is $90 per day 5 days a week, then the minimum you should have in your account is about $270 for a cash advance and many other business loans. If the payment is $500 per week, then you should have at least $500 in the business account but better $1,000 or more. If the payment is $1,000 a month, then you should have at least $1,000 but better $2,000 or more in the account. If you do not have the minimum amount needed to close, [ clock ticking ]it is better to wait a few days or longer until you do, or you may be declined right before closing.
Step 2: Overdrawn:
Your account should not be overdrawn at the time you do the bank account verification or Decisionlogic, your business will be declined if you are. If you are overdrawn, you must wait until the account has a positive balance. If you’ve recently been overdrawn more than 2 or 3 days in a row, the lender may decline for that reason. If your business account was overdrawn a total of 5 days or more per month during each of the last 4 months, that may trigger a decline.
Step 3: NSF’s:
Also known as insufficient funds are charges that were rejected by your bank or debits that were paid but overdrew the account. The bank account verification looks at the NSF’s since the beginning of the month. You should not have more than about 5 or 6 average per month NSF’s during the current month. In summary, the lender will look at your current balance, and for the month to date since the beginning of the month, your total deposits, NSF’s and overdrafts and make a pass or fail decision.
Step 4: Complete:
If you pass, this is often the last step. In some cases, final verifications of the business and owners are completed. If it is the last step, [ woman giggling ]you will be funded.
If you fail the bank account verification, [angry woman growling ] try to find out from the lender what the problem was. You may be able to fix it in a few days such as low current balance or too many overdrafts or NSF’s in the current month. [ vault door opening ]The lender may be able to fund you after a week or two of good balances and cash flow. [ fire hose gushing ] If your cash flow had more problems, the lender may tell you to wait longer and do the bank account verification after that. Work closely with the lender to find out how long that is. For more details tap on the end screen or go to smallbusinesssloansdepot.com [guitar sound ]
You need to complete a bank verification such as DecisionLogic to close a business loan. Your balance may be low or overdrawn.
Don’t fail your bank checking account verification requirement.
What is Bank Verification, also known as DecisionLogic? Bank verification reviews your recent business cash flow to make sure your deposits are not too low and your business can handle the new business loan payment. To review the
video mode only page, go to pass decisionlogic bank verification.
Call 919-771-4177 for more info.
STEP 1: Review Total Monthly Deposits:
VIDEO CLIP below: Total Deposits: How much is enough?: 23 Seconds –
38 Seconds in Clip below.
Don’t get declined for failing a bank account verification or Decisionlogic to get a business loan or a Cash Advance. Total Deposits. Look at the total deposits into your business checking account for the current month.
You want the dollar amount to be on track for the current month or not more than about 25% less than the average for the last 4 months. If it’s much more than that your offer may be reduced or declined.
STEP 2: Check the Minimum Balance Required
VIDEO CLIP below: Minimum Balance: 39 Seconds –
79 Seconds in Clip below.
TIP: Know the minimum amount you need to have in your account at the time of the bank verification or decision logic. Often it’s a multiple of the payment, either daily, weekly, bi-weekly Or monthly.
Example: If your payment is $90 per day 5 days a week, then the minimum you should have in your account is about $270 for a cash advance and many other business loans.
If the payment is $500 per week, then you should have at least $500 in the
business account but better $1,000 or more. If the payment is $1,000 a month, then you should have at least $1,000 but
Better $2,000 or more in the account.
TIP: If you do not have the minimum amount needed to close, it is better to wait few days or longer until you do, or you may be declined right before closing.
Overdrawn:
VIDEO CLIP below: Overdrawn: Is Approval Dead?: 80 Seconds –
103 Seconds in Clip below.
Review recent overdrafts for the last 4 months in your account. Your account should not be overdrawn at the time you do the bank account verification or Decisionlogic, your business will be declined if you are.
TIP: If you are overdrawn, you must wait until the account has a positive balance. If you’ve recently been overdrawn more than 2 or 3 days in a row, the lender may decline for that reason.
TIP: If your business account was overdrawn a total of 5 days or
More per month during each of the last 4 months, that may trigger a decline.
Step 3: Review NSF’s for the last 4 months in your account.
VIDEO CLIP below: NSF’s: Insufficient Funds: 104 Seconds –
131 Seconds in Clip below.
TIP: NSF’s: Also known as insufficient funds are charges that were rejected by your bank or debits that were paid but overdrew the account.
TIP: The bank account verification looks at the NSF’s since the beginning of the month. You should not have more than about 5 or 6 average per month NSF’s during the current month.
In summary, the lender will look at your current balance, and for the month to date since the beginning of the month, your total deposits, NSF’s and overdrafts and make a pass or fail decision.
STEP 4: Complete
VIDEO CLIP below: Complete: Pass or Fail Bank Account Verification for Loan: 132 Seconds –
171 Seconds in Clip below.
TIP: If you pass, this is often the last step. In some cases, final verifications of the business and owners are completed. If it is the last step, you will be funded.
If you fail the bank account verification, try to find out from the lender what the problem was. You may be able to fix it in a few days such as low current balance or too many overdrafts or NSF’s in the current month. The lender may be able to fund you after a week or two of good balances and cash flow.
If your cash flow had more problems, the lender may tell you to wait longer and do the bank account verification after that. Work closely with the lender to find out how long that is. For more details tap on the end screen or go to smallbusinesssloansdepot.com.
DecisonLogic is a company that many lenders use to verify a bank account and it’s activity. They review the current month to date , recent negative days or overdrafts, the current and average balance, and is a main reason an MCA is declined. If you have recently opened a new business checking let the lender know.
Review
1. 3 Times the Loan Payment.
The current balance must be positive. An overdrawn will result in an immediate decline.
Do not move forward with the review with less than twice the new payment in your account. For more info on how to successfully get a loan of this type, you can watch the How to get a Bank Statement Loan Video.
For Example:
If the new payment is $400, then you should try to have $800 to $1,200 available to help insure you will pass a Decisionlogic verification. Don’t have a low balance the day of the balance check.
2. Few or No Negative Days.
The most recent week should have no negative days.
Don’t worry too much. A negative balance day will not automatically decline you. If you had more than one overdrawn day, the risk of a reversal of the approval increases. You want a maximum of 5 total negatives in any of the last 3 months bank statements to get funding.
3. Strong Average Balances
The current month’s average daily balances should be strong. The amount depends a lot on your overall business sales and any new debt. Do keep an average daily balance of at least $1,000 if possible. Pay close attention to this if your business has had recent low sales.
Businesses with higher annual revenues must have higher average balances in their checking account.
Lenders look at this number to help them decide if the business will have the cash flow to handle expenses and all required payments. Strong average balances will help you successfully pass a decisionlogic review.
4. No New Loans
Your business should not have taken out any new loans during the last 30 days. The lender can see any new debt through the end of the previous month, but not the current month.
Did you take out a new loan in the current month? New loans taken out since the beginning of the month trigger a re-review.
Call 919-771-4177 for more info.
FAQ: How to pass a DecisionLogic Bank Verification Check:
What is a Decisionlogic check?
The lender securely reviews the current and most recent cash flow in your business checking account. They use that information as part of their final closing items to decide if the loan will close and fund.
What can I do after failing DecisionLogic?
Talk to the lender. Try to find out as much as you can about why you did not pass the account verification review. Also ask if you can wait a few days and try DecisionLogic again. Some declines are based on low balances and very recent NSF’s.
New deposits coming in during the week along with a clean account can change a decline back into an approval.
How do I pass a DecisionLogic check?
The lender may not tell you but find out as much information as you can. Tell them your current and recent balances are and ask if that will be good enough to pass and close the loan.
Conclusion
Ask the lender what they are looking for before the bank verification check.
What if I failed the verification check? Ask if you can try it again after you make substantial deposits or overcome the obstacles that caused the verification to fail. These 2 main ways should allow you to overcome the verification hurdle and get funding!
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.
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