Bank Statement Business Loans – high approval rates

What are bank statement business loans?    They are loans that rely on the bank statements of your business as your ticket to get approved for financing.

Why can they be good for your business?

Your can get around problems that cause declines for most requests.    Does your business have revenues?   Then your business has an excellent chance right now to get fast funding.

Get an offer today for the capital your business needs using just the last 3 months business bank statements.    Start below with same day approvals.

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Features and benefits:

  1. High approval rates and high approval amounts
  2. almost all businesses can prequalify based on their cash flow.
  3. Same day approvals common
  4. Large business loans also available
  5. Review options on how to get a large business loan over $100,000, 250,000 and as high as $1,000,000
  6. Daily, weekly and monthly repayment options available for many businesses
  7. No prepayment penalty for some programs
  8. Does your business have tax liens?   We have a program that specializes in business loans with tax liens.
  9. Soft credit pull for some programs
  10. No collateral needed

Other bank statement business bank statement loan advantages:

Get up to 125% of a customer’s total monthly deposits. If your business has average monthly deposits of $100,000, then expect your approval to be up to $125,000 if there are existing loans.

How to qualify

– Provide a signed and dated application online.
– Send the last 3 months complete bank statements from the main business account along with the application.

FAQ Frequently asked questions:

Question: What is the most we can get?
Answer:The approval amount depends mostly on monthly deposits per month, the average daily balance,  credit and time in business.    With high deposit volume your business certainly may get a high offer.
Question: We are in Canada.   Can we get funding?
Answer: Yes.   This loan based on business bank statements  is also available in Canada as well as Puerto Rico.
Question: How long does funding take?
Answer: Approvals are usually the same day and as fast as 2 to 4 hours.  Funds can be in your business checking account that same day or next day.
Question: What are the repayment terms?
Answer: The repayment terms are between 1 Month and 24 months.   Most offers are 6 to 12 months.  Sometimes approvals for 12 to 24 months are available.
Question: Can my business have overdrafts and nsf’s?
Answer: Yes, the most is 7 overdrafts or 7 NSF’s per month. If your business has more than 7 overdrafts then it can still be reviewed for approval. Over 5 overdrafts or NSFs per month are considered high.

In conclusion:

For all the reasons above, your business has an excellent chance of getting funding based on the monthly revenue it deposits.    This funding is an excellent way to do that without being denied for bad credit, time in business and not having financials.

For further expert general small business assistance, visit SCORE, Counselors to America’s Small Business.

Business Bank Statement Loan

Definition of Business Bank Statement loan:

Businesses that get a business bank statement loan based on their Gross Sales.  Since almost all businesses have sales, almost all businesses pre qualify.   The funds can be used for any reason, marketing, advertising, inventory, expansion, additional employees, cash flow, new product lines, or taxes.  How to get this financing . Steps and tips on what to look for as well as getting approved and closing. Terms and conditions information.

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Businesses provide their last 3 months business checking account statements and a simple one page application.   If the Gross sales figure is significant, the approved amount will often be higher.   Repayment terms for this product are 2 to 18 months.

How can my business get a loan using bank statements?

Features and Benefits:
– Only 4 to 5 Deposits per month are needed in most cases.
– No Site inspection for most clients.
– Renewals often possible once balance is 40% to 50% paid off.

What is needed for Approval?
– Most recent 3 months complete business checking account statements
– Signed and dated within last 30 days application.

What is needed for closing?
– Completed closing docs.
– Copy of driver’s license
– Copy of voided check.  Specifically, this is a copy of a voided business check.
– Other requirements may apply.

Funding amounts of up to $500,000 can be obtained.  Up to 125% of the total dollar amount of monthly deposits can be approved.   For example, if the customer deposits $50,000 per month, a maximum of $62,500 can be approved.    Approval time is 24 to 72 hours.  In most cases, businesses are approved for 25% up to 100% of their total average deposits of the last 3 months.    As an example, if a business deposits and average of $40,000 per month, they will most often be approved between $15,000 to $40,000.

Approvals can be higher with a higher average daily business checking balance. If the customer has more than one business account, then both account statement can be provided.   2 lines may be approved.    If your business is seasonal, then the last 12 months account statements can be provided.   This will strengthen the request.

For example, a construction business is often a seasonal business with at least 2 or 3 months in the winter being low volume months.  Rather than receiving a lower approval amount due to this, simply provide the last 12 months, which will include the higher volume months.

Required to qualify or pre-qualify.
– Signed and dated application from 50% of ownership.
– Last 3 months complete business bank statements from main business operating
account.
– For amounts over $150,000:  The most recent 6 months business bank statements
and first page of the most recent business tax return.

Required for Loan Contracts:
Valid and clear driver’s license.
Voided business check for approved account.
Valid E-Mail address for owners.
Federal Tax ID number, or TIN.
Other requirements may apply on a case by case basis.

Other benefits:
– Renewal options may start at 40% pay down of balance.
– No standard site inspection in most cases.
– Tax Liens up to $100,000 may be accepted.
– Bankruptcies 6 months or more O.K.
– Only 50% ownership required in many cases.

A Dental practice in Lakeland Florida needed some expansion capital.   Due to the recent time in business and some past credit issues, the company wished to use their strong Gross Sales.

The company provided their most recent 3 months business checking account statements. A one page application was submitted.   Within 24 hours, they were approved for a $40,000 business bank statement loan.    They chose a repayment term and original documents were E-Mailed. The customer returned the completed documents.

A simple verbal verification was completed with the customer.   Following the verbal, the funds were wired directly into the customers account within 24 hours.    The customer had access to the funds and was able to pay a contractor to begin expansion and remodeling of a section of their practice immediately.

Features of this business bank statement loan product include:

Low credit score acceptable.   Credit scores even below 500 accepted.
No application fees or advance payment fees.
Unsecured transaction.   No collateral is required.
There are no restrictions on how the funds are used.
Fast and Easy application process.
The entire process takes approximately 5 business days.
Difficult transactions handled routinely.

What are common decline reasons that you may be able to approve?
– 5 or more overdrafts or NSF’s per month.
– Less than $7,500 per month in revenues.
– Less than 2 Months in business

What are the primary factors that are looked at for this business bank statement loan?

Average daily balance.   The average daily balance is considered.  Lines begin with an average daily balance starting at $3,000.   The higher the average daily balance, the higher the approved amount will tend to be.

Number and dollar amount of Monthly deposits. A minimum average of 5 deposits per month are requested.  The higher the dollar amount of the average monthly deposit, the higher the approved amount.  Approvals are up to 125% of the average monthly deposits.

Beginning bank balances. The balance at the beginning of the month is reviewed for each of the six months.   The amount of the beginning balance is not critical.   Many businesses have some of their largest monthly expenses at the end of the month.  These include monthly business office rental payments, business mortgage payments and other payments.  After payments such as these, the beginning balance at the first of the month may be lower.

Ending bank balances – The balance at the end of the month is also reviewed.   For reasons similar to the reasons above for reviewing the beginning  bank balances, the ending balance is assessed.   Many businesses have large expenses at the end of the month, including many automatic debit payments.

Insufficient funds and overdrafts. The statements are reviewed for the total number of overdrafts and insufficient funds per month.   A company can have some insufficient funds and overdraft events per month.  The statements are reviewed to make sure that the numbers are not excessive per month.A customer wishes to obtain a higher approval amount. What can they do?  Provide strong Financials.  What are strong financials?

Gross income.   Gross income figures should be increasing from any one year to the next.    This includes Profit and Loss statements.   If the Gross income figure decreases from one year to the next, this is considered a negative and will hurt the request.

Net income.   The Net income figures should be flat or increasing from year to year.   Net income figures should be $25,000 or higher.   Lenders will question the ability to repay if net income figures are too low.

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The SBA offers assistance with business plans and putting together financial statements.

Loan Using Bank Statements

How to get a loan using business bank statements

  1. Get the most recent three (3) months complete business checking account statements
  2. Review your total dollar amount in deposits per month, your average daily balance, number of deposits per month, personal credit, type of business and time in business.
  3. Select a bank statement loan program that best fits your business.
  4. Complete application and provide the last three months business bank statements.
  5. If approved, submit required closing information and close transaction

Small Business Loans Depot offers a loan using bank statements through the company’s Gross Sales.   Every company has sales, so almost all companies can qualify.

Many callers call in and request a “loan using bank statements” or a “business loan using bank statements”.  Get started on this financing today.  Provide the  most recent 3 months business checking account statements and 1 page application.

  • Our Loan using Bank Statements can be used by a business to get up to $250,000 working capital, and as much as $500,000 in some cases.
    A customer can get a renewal of their original funding at 50% paid down.
  • The funding can be used for any purpose the business needs.
  • Applying is fast and easy and the entire process takes approximately 3 to 7 business days.
  • This product has no upfront application fees.
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Other Features

Ask about our Flex payment or Flexible payment product because the payments are variable and not fixed.   United States and Canadian companies only.
Example:

A business is approved for $25,000 with a 6 month term and a $100 daily payment.  With other programs, the business has to repay $100 every business day even if sales are slow or if sales are higher than normal.

With the Flex payment program, if the customer’s deposits drop 25% one day, then the daily debit is $75.   If the deposits increase 50%, then the daily debit is $125.    This program has a great advantage for customers.   If their sales are slow, they won’t have a higher burden to make the payment.   When their sales increase, they will still have the same percentage taken out and repay the funding sooner.

A business can get up to 125% of it’s monthly deposits with this program.   The customer’s beginning bank statement balances, ending balances, amount of monthly deposits and also average daily balances are looked at to determine the approval amount and terms.    The repayment term is between 2-18 months.

Customers with more than one active business checking account with significant balances should use the account with the highest amount of deposits.    The minimum time in business is 4 months for the start up program.  Your business should provide it’s first 3 months statements to try to qualify for the start up program.

Benefits:

– Just 4 Deposits per month required in many cases.
– No Site inspection for qualifying deals.

What is required to submit for an approval?
– Most recent 3 months complete business checking account statements
– Signed and dated application.

What is required for closing?

– Copy of voided check.  Specifically, this is a copy of a voided business check.
– Copy of driver’s license.
– Landlord contact information.
– Other requirements may apply.

Required to pre-qualify or qualify:

– Signed and dated application from at least 50% of company ownership.
– Last three months complete business bank statements from the main business
account.
– For amounts over $150,000:  The most recent six months complete business bank statements and the 1st page of the most recent business tax return.

Required for Loan Contracts to be sent:

– Clear copy of driver’s license.
– Copy of a voided business check off of the approved account.
– Valid E-Mail address for the owners of the company.
– Federal Tax ID number, or TIN.
– Other requirements may apply.

Other business bank statement loan customer benefits:

– Renewals and renewal options often begin at 40% pay down of balance.
– No standard site inspection is performed or required for many customers.
– Bankruptcies older than 1 Year are usually acceptable.
– Only 50% ownership needed in some cases.

If a customer’s sales increase in the 6 months to year after the line is established, the line size may be increased very significantly due to both the increase in revenues and satisfactory repayment.

Other issues:

Other issues for the Loan using Bank Statements program include average balances, amount of deposits per month, number of deposits per month, beginning balances, ending balances, and overdrafts and NSF’s.

Question:  How much time does the process take and how long does it take to receive the funding?

Answer:  The decision process takes approximately 24 to 72 hours. The customer receives the loan documents the same day or the next day.   Once the customer returns the completed documents via Fax or overnight, the loan documents are reviewed.  Once the accuracy of the documents are confirmed, a verbal verification is done with the customer and funds are wired to the customer with in 24 to 48 hours.  The entire process takes about 5 to 8 business days.

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Cash Flow – Are reviewing business bank statements critical?

When lenders have requested financial statements as part of a small business loan review process, historically they have requested 1-3 years business and personal Tax Returns, and usually an interim Profit & Loss Statement and Balance Sheet.    They have in the past not always and currently often do not ask for the most recent business bank statements.

However, is reviewing a business’ bank statements critical to the process?

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If the last 6 months business checking account statements are reviewed, they will provide a real time specific indication of the current cash flow of a business, certainly in terms of current balances, beginning balances, ending balances, average balances, # of deposits per month, expenses, and if the company has had any, or significant insufficient funds or overdraft activity.

The tax returns, while very detailed and provide significant financial information that business bank statements do not provide,  are still a snapshot of a company’s financial condition that is at 4-12 months old.    If it is the previous years return, it is at least 16 – 24 Months old.

If the Personal Financial Statement of the owner is requested, a cash on hand figure will be provided, though this too is often months old.  If the additional new debt service being considered is,  as an example, $1,500 per month, then if a company keeps steady average business bank statement balances of $10K – $20K in the past 6 months, will have a stronger likelihood of being able to easily service the new debt.     Conversely, if the company keeps average balances between $1,500 to $5,000, then there may be greater stress on the company to service the new debt.

Reviewing Bank Statements for Cash Flow
Reviewing bank statements for cash flow.

Unless there are other reasons not to request the statements, such as the customer is a long time repeat customer, or the amount requested is clearly small based on the revenues of the company, requesting the last 3-6 months business bank statements will greatly assist lenders in assessing a businesses real time cash flow.

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