Read up on tips, how to’s and steps on how to get a small business loan.
Small business loan articles and resources. Information including tips and steps on how to get a small business loan. Find articles on different types of small business loans including asset based loans as well as loans on equipment. Other articles cover mca merchant cash advances and accounts receivables financing. Merchant cash advance information includes getting low rate cash advances and how to get out of a merchant cash advance if they are causing your business a cash flow problem.
Concurrent funding is when your business continues to get more money while you pay down the original business loan. Why concurrent funding? Get new funding soon after you start paying down your current loan. Your business is likely to qualify for new funding several times during the loan. Apply below and say you are interested in concurrent funding options. Read more if a larger business loan is needed.
FAQ Frequently asked questions on a concurrent loan for businesses
What is a concurrent loan?
A concurrent loan is when the same lender makes another separate loan before their existing loan is paid off. The concurrent loan can be as soon as 1 month after funding.
Why get a concurrent loan instead of redoing the same loan?
Lenders do not want to refinance the existing loan after only a month or two. The numbers in the contract would be wrong. As a result, it is easier to do stand alone business loans separately. This is especially true if the lenders want to extend more funds frequently such as monthly.
Won’t my existing lender give me less money because I already owe them?
The lender will always give you as much as they can. If you have a good payment history with them, they usually give you more than other lenders because you have a proven record with them. If you need more than they will give, then you can consider other lenders
What should I do to get a concurrent loan?
Find out how much you owe on your existing business loan:
Find out what the balance is on your loan and what the requirements are for getting more money. Only some contracts will allow you to get more business funding after paying on your existing loan for just 1 month. Many other contracts require your business to have paid the loan down 40% to 50%, or even more.
By knowing what your contract says, you can contact the lender as soon as you are eligible. Check that your payments have been on time and if being late makes your business ineligible for more funding.
Small businesses have a hard time getting a loan from banks. But why is that? Why don’t banks lend to small business? There are several reasons. Find out how to get lenders to lend to your business.
Banks are much more risk adverse
Banks are risk adverse because of the low rates they offer. So by earning less on each loan, the bank has to have more paying loans to make up for one default.
Banks charge low rates on loans
The lowest rates for business loans are at banks, savings and loans, credit unions and the sba. Because rates are low, the bank will make much less interest income from the loan. What can you do about it? Get a business loan that a bank will not approve. Apply below. Secure DocuSign 30 Second Application here
Call us at Tel: 1-919-771-4177, or Question? Contact us here.
What are other reasons banks do not lend to small business? Banks need strong credit, financial statements and good collateral.
Business owners who do not have a high credit score, strong collateral and strong financial statements will probably not be approved at a bank. As a result, your business needs a lot more funding options. Apply above.
FAQ frequently asked questions on why don’t banks loan to small business?
So why won’t banks lend to small businesses?
Banks, savings and loans and credit unions in general only accept the lowest risk businesses mostly because they offer among the lowest rates in small business lending. Their default rate has to be very low so they can only underwrite the safest and lowest risk customers.
What do banks look for to approve a business loan?
Banks look for excellent credit, collateral and the ability to repay. Cash flow as shown through financial statements and tax returns shows a businesses ability to repay. The collateral often needs to be the type of collateral a bank will accept.
My bank turned me down for a business loan. What are my options for business funding?
It depends on your credit, cash flow and collateral. If your credit is not good, your business may need to get an asset based business loan where the collateral is the basis for approval.
My bank turned my business down for insufficient cash flow even though our business has strong sales. What does that mean?
The bank reviewed your business net income after expenses and decided there isn’t enough income left to pay the new debt. They may have looked at the net income on your bank statements or the cash flow in your business checking account.
Additional Factors on why banks don’t lend to small business.
Banks are heavily regulated. Through state banking commissions, the federal reserve and fdic, bank’s level of risk in their lending programs is often reviewed and restricted. As a result, banks put depositor funds at risk if they make loans that are too risky, especially larger commercial loans. If those loans default it could compromise the financial stability the bank and depositor funds.
Net income for the new payment
Your most recent business net income or bank statements are used to calculate if your business can make the new payment. Not all business loans look at this, but banks do.
2 to 3 year cash flow history.
Traditional banks also ask for business financials including business tax returns for the most number of years, usually 2 or 3 years.
Type of business and industry
Banks consider the industry type in their business loan decision. Banks, savings and loans and credit unions usually prefer certain industry types over others because some industries are considered risky and restricted.
Time in business
Less than 2 or 3 years time in business will often be a decline reason.
Other loans your business already has
If your business has any other loans already, that may be a reason to be denied a business loan by a bank. This is often called over obligated or sufficiently obligated.
Lack of financials such as interim financials
Not having the requesting financial statements can be a decline reason.
Not a homeowner.
If you are a business owners and not a homeowner, some lenders may decline you. Being a renter instead of a homeowner can be a decline reason. Banks may see renters as less stable and therefore riskier.
Time at current business location
Businesses at their current location for less than 2 years may be denied by banks and other lenders. Lenders will decline if they feel that stability is lacking.
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 Docusign 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.
FAQ’s Frequently asked questions on being declined for a business loan for non business revenue transfers between business checking accounts.
Question: My business has transfers between business accounts each month. Can you still fund a business loan with transfers between accounts?
Answer: Yes. We will look at the transfers between accounts. If they are not business revenue then we will just deduct the amount from the total. If they are business revenue then they will be kept as part of the deposit totals and used as part of any offer.
Question: Our business was declined for having non revenue transfers into our business account. Why would the lender decline our business for that?
Question: Transfers are often not counted as revenue because a transfer into an account may not be business income from a customer. The lender believes that deposit did not come from a sale or service to a customer.
Question:I was denied for a business loan because the lender would not count transfers between business accounts even though they were revenue. Why would they not count and include those transfers?
Answer: The most likely reason is that the repayment of the loan will only usually come from one business account even if the business has more than one business checking account.
Question: Our business does transfers between accounts for payroll and other needs. Why should we be penalized for that when it comes to our revenue totals for a business loan?
Answer: If your business is transferring between accounts for payroll and operating expenses then those transfers will probably be counted with us towards your total revenue in the loan analysis.
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.
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!
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. If the lender has no coj confession of judgement, you will still want to work out a payment plan to avoid a default.
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.
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.
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.
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 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.
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.
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
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. The mca company can also declare the act of closing your business checking account to stop the daily payment as an intentional 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.
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.
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.
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.
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.
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.
If approved, review the terms of the approval. If you are satisfied, close the transaction.
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. Apply above or call us at Tel: 919-771-4177.
FAQ Frequently asked Questions on getting out of multiple cash advances:
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 above and also helpful articles. Review funding program details below. We offer free consultation because we want your business to succeed.
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.
FAQ Frequently asked questions on how to get a real estate merchant cash advance
What am I getting by using real estate that I am not getting without it?
You are much more likely to get approved and also approved for a higher amount with longer terms. If your business has several cash advances and high total balances on advances then using your real estate will be the only way to consolidate them or pay them off. If your business has 3 or more advances there are almost no other available options to solving your cash flow problem. If you do not use your real estate then you have to find an investor that is willing to take on the entire risk that all the advance companies took. They have to take all the risk from several cash advances into one loan. That is why investors and other lenders rarely want to invest into a longer term monthly payment consolidation of several short term cash advances.
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.
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.
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.
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.
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.
Step 6: If approved, review terms and conditions. Rates and terms will not be as favorable for some time on your advances after defaulting.
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. If your business is making good revenue and profits now that will help. If your business is making more revenue than before that will make your profile even stronger after a default.
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 negotiating 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.
Proving your business address and location are required for many business transactions. It requires documents 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.
The business owner can submit any of the following because almost all are accepted.
Business rental lease agreement, or a copy of the business rental lease agreement.
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.
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.
Articles of Incorporation or a partnership agreement that has the same address on it.
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.
Step 4: Make contact with funding programs and confirm your business address information will be enough.
Step 5: Submit a request or application.
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.”
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.
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:
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?
Ask the lender for all the options they will accept to prove the location of your business. The lender may accept more for proof of business address than what they are saying.
What is a site inspection?
A site inspection is when a company sends someone in person to inspect the place of business of another company. This is usually done for business loans, vendor relationships and when large contracts are signed between companies. The goal is to confirm another company’s address and place of business. It also proves that the business is open and operating.
What will not work for proof of business address and location?
PO Boxes, addresses that do not have a building or structure on them, out of state addresses, vacant lots and raw land are not accepted as proof of a business address and location
h6>Examples of what generally will not work for proof of address:
Virtual office address
P.O. Box: post office box
Address to a vacant lot
Address to a physical location that does not have a building or structure on it
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.
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.
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.
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.
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.
Step 4: Make contact with funding programs and confirm your business criteria meets minimum funding program requirements. Discuss amounts with the lender representative.
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.
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. It could be as low as 450 or lower. Does my business still have a chance to get funding?
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 small 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.