Not enough Deposits: Business loan declined?

Business loan applications are sometimes declined for not enough deposits.
Businesses have used cash flow loans to a great extent in recent years to finance their businesses.    The business account has limited activity or no activity in one of the most recent months.
How can your business fix being declined for a business loan for not enough deposits?   There are several tips that your business can follow to get financing, either right away or in the short term.   Apply below or see our FAQ Frequently asked questions below :

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Our Small Business Development Center assists in getting past these problems to help business owners get a fast and easy business loan.

FAQ Frequently asked questions on being declined for a business loan for
not having enough deposits

My business was declined for not having enough deposits. How many deposits do we need each month?
The number of deposits your business needs depends on the type of loan the business is applying for. For a merchant cash advance, 5 deposits or more per month is best. Other business loans may require more or less.
Our business had more than 5 deposits per month, so why were we still denied for not having enough deposits?
Many businesses are declined for having deposits that are transfers from other accounts or deposits that are not from the operation of the business. Those types of deposits are not considered for an approval.
Our business only has 2 or 3 larger deposits per month. How can we qualify for loans that require more deposits?
Get more deposits per month and more customers. Lenders consider a low number of deposits into a business account as higher risk because it means the business has fewer customers that it earns revenue from. Losing 1 customer will impact revenues and ability to repay a loan much more. Some businesses request their customers to make smaller, more frequent payments. This shows a steadier income which lenders consider lower risk.

Not enough deposits per Month
Has your business been declined for not having enough deposits per month?

How to get approved.

Talk to lenders in advance and find out if the lender has a minimum number of deposits per month needed to be approved for financing.  We can direct your business to these programs so that you can apply for the right program and can get approved.

Other options

Make more deposits immediately during the rest of the month and apply at the start of the next month.   A deposit to a business checking account statement is often from several customers.   Retailers usually have several checks and cash from several customers, go to the bank and make 1 deposit.    Instead of 1 large deposit, break the deposit into several smaller deposits over the course of 2 or 3 days.

Talk to the Merchant Cash Advance companies and ACH business loan lenders directly about being declined and ask them how you can get your business approved.   As your business grows, it will add more customers.  Having deposits from more customers will increase the number of deposits per month into your business account.   As a result, this will make your business a better risk from the lender’s point of view.   The number of customers a business has is an important part of looking at risk by lenders.
For example, restaurants have hundreds of customers per week.   As a result, they will show many deposits per month.   Restaurants that lose a few customers only lose a small percent of their customer base.   A business that has 4 large customers loses 25% of their customer base when they lose just 1 of their customers.

Possible solution:

If you know the deposits you make into your business checking account have multiple items, you can tell the Merchant Cash Advance company or ACH business loan company.
What are multiple items?
Multiple items means that the funds in the deposit are from more than 1 customer.    If the merchant cash advance company knows this, you can get a copy of the deposit from the bank.   The copy of the deposit will show the items deposited. If it is 5 items, you may get credit for 5 deposits instead of 1.     You may be able to get the MCA company to change the decline to an approval.   A number of ACH lenders and merchant cash advance companies are open to this.

If this does not work, ask how long you have to wait before they will consider you again.  Be clear on what they want to see the next time so you will not be declined again.

Get working capital through other loans

If the options above do not work or you cannot wait, your business can consider other types of business loans.   Which ones are best depend mostly on your company’s profile.    Choices include:
– Monthly Term loans up to 48 months based on Tax Returns
– Accounts Receivables Financing
– Business loans based based on Real Estate or Equipment Assets.
Business loans based on real estate, equipment or accounts receivables will usually not have this requirement.   Having collateral that covers the loan amount means that cash flow is not as critical.    The number of customers is also not important.

Unsecured loans depend heavily on cash flow and as a result, the cash flow of the business is scrutinized much more.    Businesses applying for unsecured loans should also have financial statements that show the business making money and having net income.   Many businesses do not show net income and this hurts their request and also causes declines.

The SBA small business administration also has excellent resources on alternative business loans

Merchant Cash Advance Consolidation Increases

Merchant Cash Advance Consolidation Increases

If your business is struggling to pay crushing merchant cash advances, then consolidate them.  Merchant cash advance consolidation increases continue.
What is a merchant cash advance consolidation?   A merchant cash advance consolidation is when a business that has more than one merchant cash advances takes out one loan to pay off multiple other advances.   The term of the loan is usually longer than the term of the other advances.

Complete the secure Docusign 30 Second application now.
Or call us at Tel:  1-919-771-4177, or Get an mca merchant cash advance consolidation here.

Businesses that have short term merchant cash advances can consolidate them into one loan with terms between 12 and 60 months.  Pay as little as 20% of your current daily or monthly payment.    If you are paying $100 per day, consolidate and pay between $20 and $40 per day.   The process is easy.  If you have been in business 6 months or longer, apply for consolidation today.

A business can lower the amount they spend on these advances as much as 100% to 200%.

We can take a look at a common example of how much a business can save per month in the repayment by consolidating merchant cash advances.    If a merchant took out a $10,000 advance for 6 months, the monthly repayment is about $2,166.   With a consolidation for 36 months, the monthly repayment can be lowered to about $400 per month.    The merchant will be repaying about 20% of the previous monthly payment.

Callers call in requesting information on identical or similar topics.   Callers request information on a Merchant Cash Advance Consolidation.   These requests will increase.

For immediate release, Pittsburgh, PA  Titan Ironworks announces a Consolidation of $175,000 in Merchant Cash Advances.   President Mark Tillman told the Pittsburgh Business Times, “This Consolidation will improve Titan Ironworks’ Monthly cash flow by $10,000 per month.  We had been paying $25,000 per month between 3 advances.  This Consolidation and extension lowers that to $15,000 per month.  With the extra cash flow, we can again put more monies into Advertising, employees and expanding new product offerings through Research & Development.”   Mr. Tillman also stated that Annual Net Income is expected to increase significantly due to the improved cash flow position.

Other sources of information on merchant cash advance consolidation increases may include the SBA small business administration

Payoff merchant cash advance

How can you payoff a merchant cash advance?  Escape your merchant advance by paying off the balance and terming it out much longer. Terms from 6 or 9 months and all the way out to 36 months or longer.
Join thousands of businesses who have paid off their merchant cash advances.
Apply below today.
Complete the secure Docusign 30 Second Application now.
Or call us at Tel:  1-919-771-4177, or Question? 

Determine what your balance is.   Complete a list of your equipment assets,
which includes Computer, medical, industrial equipment and machinery.
We will approve a loan to payoff your balance and payoff your merchant cash advance
and help you set up a 24, 36 or 48 month repayment term.   Even if you only want
to term the balance off to 24 months, this will significantly reduce your monthly payment compared to what your business was paying.

Payoff merchant cash advance

If you took out a $25,000 merchant advance for 6 months you were paying around $248 per day, or $5,457 per month.   By terming the financing out to 24 months, you will reduce the monthly payment to $1,562 per month, which is only 28% of what you were paying.  If you go out 36 months, you will reduce your payment to $1,083 per month, 19.8% of the amount you were paying.   This difference will make a dramatic positive influence on your cash flow.

FAQ’s:
How do I payoff my MCA Merchant cash advances?   What is a an MCA Merchant Cash Advance Payoff?
My MCA Merchant Cash advances are killing me.  These MCA merchant cash advances are killing my business and going to force me to close my business.   How can I save my business from these MCA’s?
These financing products all payoff MCA merchant cash advances.   The payoff is through a consolidation that lowers your daily payment at least 40% or more.    Start now.

Most frequent Requests:
– Help me payoff my MCA Merchant Cash Consolidation.
– I need get rid of my MCA Merchant Cash Advances
Help my business get out of my cash advances.
Some customers call in, skip the questions, and just ask us to do consolidate advances.  All of these requests fall into the same MCA consolidation relief product.

For immediate Release – Tucson belt company pays off merchant cash advance with 1 loan.

The company had 3 merchant cash advances totaling $75,000 with a total monthly payment of $15,000.   The monthly payment was using almost all of the company’s cash flow.   The company had 6 months left on their advances.   The three advances were combined for 1 loan for 12 months.   The monthly payment was lowered to $7,500, thereby increasing the company’s cash flow by $7,500 per Month.   President Bradford Jennings told BizTucson, “This Consolidation program was an excellent and necessary way to improve the cash flow for these Advances.   It has dramatically improved our monthly cash flow.   We will be able to increase our advertising and inventory levels.   Gross receipts are expected to increase and net income rise.  We look forward using the increased cash flow for productive reasons.”

If you are a business owner that took out a short term cash advance and are saying any of the following things or questions below, contact us today to get cash flow relief.

Callers will say they need to get out of a merchant advance to help payoff a merchant cash advance.  Other callers say they need to escape a business cash advance.    Many businesses will admit they can’t handle our business cash advance.   They will specifically say: We are trapped in a merchant cash advance.   The message is always similar in that business owners tell us they are trapped in a merchant advance.   

You will only need to complete a short 1 page Mini app and provide an equipment list which can be completed online.   The approval process takes 1 – 3 business days.  If you are approved, the closing documents may be E-Mailed to you or completed online.   You complete them and return the completed documents via fax.   A verbal verification call is completed with you and you receive funding within 1 to 2 business days afterwards.

payoff merchant cash advance
How to payoff a merchant cash advance

For other resources such as writing a business plan, you can contact the
<a “href=”http://www.sba.gov/”>SBA

How to get out of an mca merchant cash advance

How do I get out of my merchant cash advance?  Many businesses have taken out short term advances against their future sales.  Stop your crushing merchant cash advance nightmare immediately and permanently.

There are several program options to eliminate advances, for instance, a payoff, consolidation and also asset based programs and more.   Get your freedom and business back.   Apply now, below:
30 Second Application
Secure DocuSign 30 Second Application here
Call us at Tel:  1-919-771-4177, or Question? Contact us here.

How do I get out of my mca merchant cash advance?:

  • Search online for programs that will help you exit your merchant cash advances without defaulting or having problems with your existing merchant cash advance companies.   Also look at any reviews
  • Programs that will payoff your other advances while you pay a consolidation or business loan will be the best option.   For example, settlement programs are usually not the best choice.
  • Review the features and benefits of different cash advance consolidation relief programs so you can make sure they apply to your business.

    Review the programs for consolidation and cash advance relief
    Read the features and benefits of each mca cash advance consolidation and relief program.
  • Pick the program that you feel is the best match to get your business safe from your cash advances and discuss the program details with the representative.

    Choose the best mca merchant cash advance payoff program
    Select the program that you think is the best one to payoff your cash advances and keep your business open
  • Apply. If approved then review terms and closing stipulations. If the new terms put your business in a cash flow position that will allow you to stay in business you can consider closing the transaction.

    Review whether the new terms will allow your business to survive
    Review terms and closing conditions. If the cash flow will help you stay in business consider closing the transaction. Review the closing conditions to get all the items needed to fund the transaction. This may include payoff letters from your current mca merchant cash advance companies. Determine the payoff for several days in advance.
  • When closing get all items needed to meet the closing conditions.  For example, this may include payoff letters from your current mca merchant cash advance companies.  Also get the payoff for a few days into the future.

FAQ Frequently asked questions on how to get out of a merchant cash advance.

Question: How do I get out of my merchant cash advance?
Answer: There are monthly payment programs as well as asset based and cash flow improvement programs. The programs that improve your cash flow do not involve settlements or negotiation to lower your payments. Your current cash advance companies will not be contacted and you do not have to fight with the cash advance companies.
Question: Are there longer term options?
Answer: The good solution to the I want to get out of my merchant advance dilemma may well be to take the amount they owe, and extend the term out to 24, 36, or 48 months or longer. Businesses can take out an asset based loan against their equipment, or a general loan against the business. Smallbusinessloansdepot can help. We specialize in helping you get out of a merchant advance with often simple and easy loans that range from 24, 36, or 48 months. The business can choose any of these term options. Most businesses say they want to payoff my merchant advance and are happy to be able to extend the term to 24 or 36 months, which are the 2 most frequently chosen options.
Question: Can I get emergency cash flow immediately to save my business from my merchant cash advances?
Answer: Yes. Programs are available to allow your business to payoff or get immediate relief if your business is suffocating from merchant cash advances that are taking too much out of your account. Options include extending the term as well as lowering the payments and settlements.
Question: How fast can I get out of my merchant cash advances?
Answer: Processing time from application to funding is 2 to-3 business days but can be as fast as the same day. If you apply immediately and return completed closing documents it is possible to get funding within 24 hours or by the end of the business day.?
Question: Can I declare bankruptcy on my cash advances?
Answer: Bankruptcy is normally a filing on all creditors or specific creditors and not just merchant cash advances. You can contact an attorney to receive more specific information about your options?
Question: Can I stop payment on my mca merchant cash advances to get out of them?
Answer: This is not recommended. While you have the ability to do so it is considered a default by the mca cash advance companies. Very large default fees and penalties apply. The cash advance companies will often file a coj certificate judgement against you immediately if you stop payment on their daily payment. A much better option is to contact the mca companies to discuss other options.
Question: Are there state or federal laws to protect me from merchant cash advances?
Answer: There generally are no state or federal laws to protect you from mca merchant cash advances. However you review existing state or federal laws if you feel there is the possibility that the contracts may violate laws.

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Other frequent requests for assistance:
– Help me save my business.
– I have a problem and need to escape my merchant cash advances.
– I need to stop my merchant cash advances.
Many customers don’t ask questions just and say they need to be rescued from their advance emergency immediately.
– I have a problem paying my mca’s.

Most common requests and comments by callers:
I need emergency cash flow right away. Most callers say they need immediate cash flow.    Some callers still have signifiant cash flow and say they need another advance asap.

1) These cash advances are destroying and ruining my life and my business.
2)  I am suffocating from my merchant cash advances and need to lower my merchant cash advance payments.  Also, I need emergency funds right now.
4) My merchant cash advance payments are killing me, so I can’t sleep and am also having night mares from what these cash advances
are doing to me.   Merchant cash advances are strangling my business cash flow.

 

How to get out of merchant cash advances

Resources:

For more information on business in general and business loans, also visit SBA Information and Options

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