Business Account Transfers: Affect on a Business Loan

Has your business been declined for a business loan for having non revenue business account transfers?

Certain transfers between business checking accounts are not counted as deposits or true business revenue by many lenders.
Get business funding programs that consider many transfers that are  automatically declined by most lenders.   Click on the application contact form below to get funding started today.   Same day and next day funding available.   Don’t be declined for having transfers between accounts.


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FAQ’s Frequently asked questions on being declined for a business loan for transfers between checking accounts that are not revenue from sales.

Question:   My business has transfers between business accounts each month. Can you still fund a business loan with transfers between accounts?
Answer:   Business revenue transfers will be kept as part of the deposit totals and used to make an offer. Transfers that are not business revenue are deducted from total business deposits for the month.

Question:   Our business was declined for transfers into our business account. Why would the lender decline our business for that?
Answer:   Transfers into an account may not be business income from a customer. The lender believes those deposits did not come from a sale or service provided and are not true business revenue.

Question:  I was denied for a business loan because the loan company did not count transfers between business accounts that were business revenue. Why didn’t they count and include those transfers?
Answer: The most likely reason is that the repayment of the loan usually comes from one business account even when the business has more than one account.

Question: Our business makes transfers between accounts for payroll and other needs. Why are we penalized for that by lenders for a business loan?
Answer: Business revenue transfers will be counted by us towards your total revenue during the loan review. For other lenders you will have to ask them to review their decision. Provide documentation and evidence that those transfers are business revenue. Invoices and deposit detail may help.

How to get approved after being declined for having unacceptable transfers between business checking accounts. — Click on image to get started!

Customer examples of businesses that were declined and we were able to get an approval for and funded.

Example 1 :  A construction company had 7 deposits in May into their main business operating account.  During the month they had 5 transfers into that account from the other business account they have.   One of the remaining 2 deposits was for only $200.    The lender only gave the company credit for 1 deposit that month and declined them for not enough deposits due to transfers.
The customer came to us asking if we could help.  The transfers were true business revenue from their other account and we were able to get them approved for  $35,000 funding.   Why were we able to help them?   We looked at the account they transferred funds from and counted those funds as real revenue.   As a result, the fact they transferred funds did not matter.

Example 2:  A manufacturing company had 8 deposits into their account in May.   All 8 of those deposits were showing on their bank statements as
“E-mail money transfer in”.   Three funders declined the business for non business revenue transfers.   The customer told us those were payments from customers and not transfers between his business checking accounts.   The customer does not accept payment by visa or master card and needed to give his customers more payment options than  only being able to pay by check.    Through his bank, his company began offering a very convenient payment via E-mail option after which most of his customers switched to and began using.  The other lenders did not consider this and immediately declined him.

Was your business declined for a business loan due to transfers between accounts?  What can you do now?
Contact the lender to discuss this decline for having business account transfers.

Communicate with the lender and find out which transfers were not counted as revenue.  The decline reason probably did not have enough information.  Ask about the details.   Also ask about the specific policy that does not allow transfers between accounts to be considered business revenue in a loan evaluation .

How can you advocate your business to the lender?
Ask the lender what it will take to get approved.  Also ask if there are any changes you can make immediately that will change the decline to an approval.

When can you apply again?
Ask how long you have to wait before you can apply again.  Most lenders will make you wait at least 30 days before you can reapply.    As mentioned earlier, if you can determine what changes you need to make with your business as well as the type of of deposits,  then make those changes before reapplying.

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