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What is Not Business Revenue?

Not Business Revenue: What does that mean?

Revenue is not equal, especially for your business.   Lenders considering small business loans such as bank statement loans often look in detail at where sales came from in your business statements.  They are looking to see if the revenue is from the operation of your business, or not.

What if your business has been denied because the lender did not accept a large part of your business sales?

Then Apply below for programs that count the maximum amount of your sales and deposits instead of deducting them and declining your business!

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Business revenue vs Non Business Revenue
What isn’t business revenue: Types of Non Business Revenue

4 Main types of true Business Revenue that lenders accept.

1. Income from Sales to Customers and Vendors:

Revenue from the normal sales your business has is the most preferred and accepted income any business can have.  Your  business model is succeeding and can repay debt.

2. Income from Affiliate Partners. 

Some businesses have affiliate relationships.   Affiliate partners secure customers on behalf of another business.    This income may come from the affiliate partners rather than those customers directly, but it is still valid receipts.

3. Money from Collections

Many businesses have delinquent accounts they collect on.  Collection receipts are valid business income, even if they are from charged off accounts.

4. Money from the sale of business assets

When a business sells hard assets such as commercial real estate, business equipment or vehicles, it is considered business revenue and should be counted that way by lenders.

This includes soft assets such as proprietary software, intellectual property and patents.  Any of these can have great value and be sold for significant amounts.   When this happens, it is counted towards business sales and included in the annual income of the business.

Windfall from court decisions or judgements

Monies from court decisions or judgements is a grey area when it comes to lenders considering this as revenue for a business. Most will give this credit as true income from the business.   Money from successful court litigation is considered monies that are truly owed to the business.

However, it is still a large one time event that will not be repeated. That makes it considerably different than money from sales which does constantly repeat, such as from a retail store.

What isn’t Business Revenue?

Transfers between business accounts or from other accounts

Transfers between accounts are not revenue for the business.  The lender analyzes them to answer the following questions:

Was the transfer from another business account of the same business?  If so, what has been the recent cash flow of that other account?

Savings Accounts:
Savings account transfers into a business checking account are not business income received by a business.

Personal Accounts:
Transfers from any personal account into a business accounts will not be considered business sales.   Claims that they are must be documented and proven to the lender.

Business Loan Proceeds

Loan Proceeds are NOT considered business income.  Money that comes from lenders cannot be added to the gross receipts of the business.   It did not come from sales, so it is not business income.

Tax Refunds

Tax refunds are not part of  business sales.   Money back from the IRS is usually from taxes paid for previous sales, so the income has already been counted.

Rebates

Rebates is money a business gets back from an old purchase.  It shows in the deposit section of a business checking account statement.    Money had to be spent in the first place to get the rebate or refund and will not be counted.


FAQ on Business Vs Non Business revenue.

What is non business revenue ?

It is money that is not earned by the business from sales, sale of business assets, collections or the regular operation of the business.

Why is the lender not counting some of my business income?

The lender has decided that some of the money coming into your business is not consistent, or not the type they can count on to repay their loan, so they don’t count it.

How can the lender decline my business by not counting revenue that I earned?

The lender can count, or not count funds they see coming into your business for any reason.   Their credit standards and criteria is not subject to law.  It is based on their internal guidelines.

Conclusion

Some of your income may not be accepted as business income and may even be deducted resulting in a denial of your loan request.

Consider other lending programs when much of your revenues may be disputed as true business income.   Contact us to match your business to programs that are not as strict in this type of review.

We are a leading funding source for all Small Businesses looking for the best alternatives to Banks.

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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4 Top Ways To Get a Better Business Loan Offer

Get a Better Business Loan Offer: Top 4 Ways

Learn the Top 4 ways to get a better business loan offer.   Use this current program to max out the most favorable terms and conditions.   Apply below now.

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How to leverage a higher quality business loan offer.

    • Give your preferred lender a copy of any competing approval. 
    • Ask for better terms.
    • Leverage your broader relationship with the lender.
    • Find out why the approval was not better. 
Get better business loan offers now!

1. Show the lender a competing offer. 

Give the funding source information on any other approvals you have to negotiate with them.

Example:

You are approved for  $25,000 in bank statement funding, but you wanted a higher amount for more months.  Your request was turned down.

However,  you have existing offers from other funders.  Send your preferred lender the actual approvals from another institution if it matches or beats theirs.

Effectiveness:  This is often highly effective because it proves that you have multiple options.   You have more negotiating power when other lenders know they are not your only choice.  Providing documentation increases the pressure on your preferred lender to make concessions.

Rarely Done:  Very few people think of showing one lender competing offers.   The do not know that you have options from other investors.   Stand out above other applicants and show competing offers.

Confidentiality:   Is this confidential information?  It is the same you gave the other lenders, so there isn’t anything confidential you are giving away.  Your current lender already has the information, so it is not confidential.

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2. Ask for better terms.

The key conditions of the business loan offer are:

Amount:  You can ask for approximately a 10% increase since some funding programs have the discretion to increase the approval by a small amount.  Give a relevant reason why your business is asking for the higher amount.

Number of Months: The number of months often has some room for negotiation.   Ask for a 3-6 month bump instead of 12.

Rates:  Better rates are often hard to negotiate.   The funding source will generally give you the rate that matches your risk profile.  Negotiating rates may be easier when it is a brokered transaction and there are points or fees in the deal.

Check to see if there are different programs with the same funding source that would be a better fit.  Doing so may give your business better terms automatically just by switching to another program.

Also ask the representative about features and benefits.  There may be incentives and benefits in the existing approval that are already available just by asking for them.

3. Leverage any broader relationship with lender. 

Applicants often have an existing relationship with the lender they apply with.

Deposit Relationship:  Make sure the funding source considers any deposit accounts into their decision because automated programs skip this review in their processing.

Borrowing History: Any good previous borrowing history should factor into the approval decision.

4. Find out why the offer was not stronger. 

Contact a loan officer and ask them why terms were not more favorable, such a higher loan amount, number of months and rate.  Take a close look at those reasons and decide if you can overcome them right away rather than taking more time to fix them.

Example:
Getting your credit score increased will take too long to help you right now.   Getting updated financials showing your business in a stronger financial situation is faster and therefore could be used to get an improved business loan offer quickly.

For more ways to get the most out of your approvals, check out 7 ways to boost your borrowing power.


FAQ: Frequently asked Questions on getting a superior business loan approval:

How can I get a better offer?

You may get better terms if you have multiple offers and show them to the lender you want.  Tell them they need to beat the other offers in order for your business to close with them.

Will the Lender negotiate?

They are most likely to negotiate if they are given an incentive to do so.   Applicants who prove they can close with another funding source and are prepared to do so will often get a negotiated closing.

What if I don’t get better terms from the lender?

Apply with other programs if you are likely to get multiple offers.    After getting 2 other approvals, go back to the lender you want to close with and negotiate to get better terms.

Conclusion: Take advantage of easy ways to get better terms.

Most applicants do not push for better terms from lenders and as a result, sometimes miss easy chances to get a stronger deal.

Taking other approvals and asking your favorite lender to beat them always gives you a strong chance of getting concessions.   Ask for better terms and use any existing and previous relationships when negotiating. You will probably greatly increase your chances of getting an improvement on the original approval!

We are a leading funding source for all Small Businesses looking for the best alternatives to Banks.

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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How to Use an Asset With a Lien to Get a Business Loan

Do you want to get a Business Loan using assets with a lien?

How to unlock your Assets!  Here are 3 ways to use an asset that has a loan on it now as collateral for a new business loan.

Apply below:  Expert programs that include guidance getting the maximum out of your collateral.   Even if you still owe on it right now!

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1. Request a lien release. 
2. Lender takes a 2nd lien position
3. Payoff the lien with proceeds. 

3 Ways to use an asset with a loan on it as collateral for a new loan. 

1. Ask for a release of lien:

Call the existing lien holder and ask them to release the UCC lien.   Read here for more about what UCC Liens are.    Lenders often take much more collateral than they need because they want to cover any losses on defaults.  They sometimes even take all of a business’ assets instead of only they need.  They over collateralize the loan and improve their loan to value position.  Most borrowers think that is only way it will be and do not object.   The lender wins by default just by asking for more than they deserve.   

The lender may agree to release a certain piece or more of the collateral they are holding.  This works best when they have many pieces of collateral and you have already paid a lot of the loan down with timely payments. 

Push the lender hard on loans you have paid down significantly as agreed.   

Negotiation Example:  2 years ago, you took out a 4 year business loan for $100,000 and your current balance is $40,000.   The lender took 4 pieces of construction equipment worth $25,000 each and all payments have been on time. 

Telling the loan company they still have enough collateral  and maybe more than when the loan was originally closed.

The loan to value, LTV, may now be lower than when the loan closed.    In those cases, you have paid the loan loan down faster than the equipment depreciated during that time.

If they agree, follow up to verify your asset has been released at the Secretary of State, also known as the SOS.    Push hard to get a release as you may need the extra collateral, especially for a larger business loan.

2. New lender takes a second position. 

They can take a 2nd position lien on the collateral.

This works best with real estate that has a lot of equity in it.  The new loan provider can be the 2nd lien holder against the Real Estate.

Example:  A first position lender has a lien on commercial real estate.   The property is worth $500,000 and the current balance is $100,000.   The new lender makes a loan for $50,000 and then takes a 2nd lien on the property behind the 1st lien holder.   2nd and even 3rd positions are usually limited to real estate or cash flow financing.

3. New loan proceeds are used to payoff the loan

The existing loan balance on the asset is paid off.   This happens most often when the balance on the loan is very low.  As part of closing, the 1st lien is paid off and that amount is debited from the proceeds of the new loan. 

For Example:  Your business is closing a loan for $50,000 using equipment as collateral.    There is a first lien holder on the equipment and that loan has a payoff balance of $10,000.  At closing, the new lender sends a check for the payoff amount to the first lien holder and takes a 1st position on the collateral.
 

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FAQ on getting a business loan using assets with a lien .

Can I use equipment with a loan on it as collateral?

Lenders may take a 2nd position on the collateral.  In most cases, they will not make a loan if there is a lien on the asset and it is not paid off.

Do I have to payoff the loan first?

You will have to payoff the loan in many cases.   Some real estate and cash flow loans may not require a payoff of the 1st lien holder.   This will vary by lender depending on their guidelines.

Can a lender payoff the loan on my collateral?

Lenders can payoff the loan on your collateral.   The process is faster when the lender pays off the loan because they will verify and also handle the payoff. 

Can I get a loan before I have the title in hand?

Ask the lender if they are willing to close the loan and request payoff and title from the lender holding the title as part of closing.    You will have to have the title in hand if they are not willing to do that.

Conclusion

Getting a business loan using assets with a lien is possible.

Find out the lender’s requirements early in the process.   If allowed, there may be extra steps that can take a few days.   Start right away and you can close a few days sooner.

Between a release of lien, a 2nd position, or payoff, there are several creative ways you may be able to use collateral that has a loan on it right now to get a new loan.

If not, find out if other lenders have different criteria that will allow you to use encumbered collateral.    Checking into these options often lets borrowers get loans they never would have gotten otherwise.

We are a leading funding source for all Small Businesses looking for the best alternatives to Banks.

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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Business Tax Extension Loan For IRS October 16th 2023

Business Taxes Deadlines for 2023 and 2024

Do you need a business loan to pay IRS taxes by the due dates and haven’t come up with the funds?

4th Quarter 2023 Taxes: Due by January 16th, 2024
2023 Taxes due by April 15, 2024

Leverage the assets or cash flow of your business to pay IRS business taxes by April 15, 2024.   Several unique programs available, below now!

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Call 919-771-4177 for more info.

Apply above to: Pay IRS business taxes by the April 15th 2024 Deadline and Quarterly taxes for 4th Quarter 2023 by January 16th 2024. 

Multiple Programs to get approved through. 
Flexible criteria. 
Fast funding and closing. 

Get a business loan to pay the IRS extension deadline of October 16th 2023

Need the money to pay the IRS 2024 Deadlines?  Get your business tax extension loan now!

1. Funding against the equipment your business owns. 

Businesses that have construction equipment or over the road tractor trailers can use their equipment to pay tax extensions.

You can get between 40% and 60% of the retail value of the equipment, depending on the year, make, model & condition.

Example: Your business owns a 2010 John Deer Front End Loader with a retail value of $60,000.    Based on a 40% Loan to Value, the offer would be $24,000.    The percentage will depend on the condition of the asset, maintenance records and the results of a site inspection.

A 60% valuation would give an offer of $36,000.    These ranges may vary from lender to lender.   The difference is that most lenders will not make this type of loan at all and it is also considered a specialty business loan.

Traditional banks will rarely make this type of loan.  When they do, they typically only offer approximately 10% – 20% of the value of the equipment and require real estate as part of the loan.

Therefore, if your business has to have money to pay the IRS extension amount and gets any offer close to that range, it should be strongly considered.

2. Funding against business property. 

When the IRS amount your business has to pay is high, then you may need to use business real estate.

The real estate will need to have at least 50% equity in order to have a chance to get the amount you need.    A 50% equity requirement seems like a high number.   Most lenders do not loan against 100% of the value of real estate and 65% to 85% is the maximum.

It is hard to qualify to get a loan to value higher than 70% or 75% of the appraised value.

3. Funding based on the cash flow of your business.

Another option is to fund against the cash flow of your business.  This may be the best option for businesses that are asset poor.

For Example: Your business has limited assets but strong business revenues.  You need $25,000 to pay by October 15th,  and business annual sales are $300,000.

Based on getting approximately 50% of monthly sales, $25,000 X .50 = $12,500.     An average offer will be approximately $13K.    Offers in this example could range from $10K to $30K depending upon other factors.

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FAQ Business tax extension loan 

Can I get a loan to pay business taxes by October 15th ?

There are several programs your business can choose from to pay
October 16th, 2023 business taxes.    Consider programs based on your company assets or cash flow. 

What if we can’t pay the full amount of the extension?

Refer to your Accountant.   Typically,  accountants recommend filing the return, paying as much as you can and communicating with the IRS on a payment plan.  

What can we do if we don’t qualify for enough to pay for the October 15th extension?

You may qualify for more than 1 type of loan.  A 2nd type of loan may allow your business to get the extra amount needed to pay the IRS extension balance.

Conclusion

If you need a business tax extension loan to pay 2024 IRS Business taxes quickly, look at alternative solutions.

Getting a business loan approval when the use of funds is to pay business taxes is harder to get than for other reasons.   Look at less well known options mentioned above, including  based on assets and cash flow.

Leverage the strengths of your business to get as many options as you can.  The business loans you qualify for may not be the ones you prefer.   Be open to alternatives and your business has the best chance to get money to pay the IRS or State tax extension balance!

We are a leading funding source for all Small Businesses looking for the best alternatives to Banks.

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 in Atlanta, GA. Specializing in Traditional and Alternative lending.

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MCA: As Little as 1 Month’s Bank Statement

Video Description: MCA with less than 3 months business bank statements. This program matches well with newer businesses and companies that have been using a personal checking account to run their business and just opened a business account.

One Month’s Bank Statement MCA’s

For New businesses and More!
MCA option available with as little as one month’s bank statement and some funding options with
less than 3 months time in business. Restriction Apply, ask us how!

Complete the one page application below & provide the first month’s business bank statement. This is a start up specialty bank statement loan program for new businesses OR businesses that recently started generating revenue.    Visit our homepage for more programs.  To visit the stand along video page for this video, go to
how to get an mca with less than 3 months bank statements.

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1.As litttle as 1 Month’s bank statement required.
2.New Businesses.
3. Businesses that have been using a Personal
Checking Account for their business and just recently opened a Business Account.

Apply above:

New Business:  Loan program

New businesses can get approved with just the most recent month’s statement and the fast 15 second application.  Don’t forget to be ready for the business checking account verification. Renew the loan and increase the approval amount as your sales increase.

A short time in business is also #8 of the Top 9 reasons why your MCA was declined.

This program is excellent for
New Businesses.
Companies that expect to have big swings in business revenue
Businesses that want to establish a relationship with a lender.

With this program, all the most recent 3 or 4 months bank statements may not be required.

Typical Existing Programs

Almost all current programs require the most recent three months bank statements and a month to date statement.

Why?    Underwriting wants to see how the company’s cash flow has been over the most recent months.    They take the average of those 3 months and issue an approval based on the average.

Example: A business provides statements for the last 90 days and has the following total deposits during that time.

July:  $10,000
June: $15,000
May:  $10,000
The average per month is calculated as follows:
$35,000 % 3 = $11,666 per month.   In this example, the lender can make an offer knowing that the business brings in an average of $11,666 month.

Lenders cannot calculate an average with only the numbers for the last 30 days.  If the business deposited $10,000 in July,  then the lender will make an offer based just on that 30 day total.

An offer may be slightly lower, but the business has the opportunity to get a higher renewal offer quickly.   As sales increase, the business can get a much higher renewal offer.

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MCA Cash Advance: Less than 3 Months Bank Statements (Video Transcript: Click to Expand)
[ city street sounds ] Welcome to Smallbusinessloansdepot [ woman says Ooh! ] Need an mca cash advance with less than 3 months bank statements ? Even as little as 1 month statement? We have that program. If you have less than 3 months business bank statements, your business may
Qualify and be eligible for funding. You’ll find what you need here. To apply click on the apply button at the bottom right of this screen, or
On the end screen of this video. Or Call us at 919-771-4177 or go to smallbusinessloansdepot.com.

Eligibility

This is a unique option to help new businesses. It’s also for companies that have been running their business revenue through their personal checking account because they never opened an account in the name of the company when they started. We have even just added more funding options for these types of qualifying Businesses. We heard you loud and clear and we are delivering. Some Conditions and restrictions apply. Apply now or call us. Businesses are almost always turned down flat if they don’t have those 3 or 4 months business bank statements. But what if I don’t qualify for this option you ask? We have several Options to qualify just about all businesses.

Program Options

From Unsecured Cash Flow Loans like Bank Statement Loans, Business LOC style options, Asset Based Loans on your Equipment, Trucks, Big Rigs, Construction Equipment, and how to get a large Business Loan Through smallbusinessloansdepot.com. Click on the apply button at the bottom right of this screen. Weekly, bi-weekly, daily, or Monthly payments options are available, depending on the program. There are specialty low rate programs for preferred industries like Retail, restaurant, auto repair, beauty supply and spa, medical, Dental, and Chiropractors. Is your business in an industry that is restricted and cannot easily get funding? Find Out what options are available for your business. used car dealers, Real Estate, Trucking Companies, collection agencies, non profits, Attorneys, religious organizations and many other hard to fund type of businesses That have trouble finding options. Get a business loan when the owner, has a Misdemeanor or felony conviction on your background record. How to get an mca cash advance. What are the Qualifications for example, to get your first cash advance. Calculating affordability: Can I afford the payments? What to do if you need more money. Should I get a 2nd or even a 3rd Cash Advance? There are ways to get more money through your existing advance that are better than getting multiple advances from different companies. Articles on getting the lowest rate MCA if you need a longer term than the Standard 6 to 9 months on cash advances. And when it’s time for a renewal, get the lowest rate on your renewal.

Alternative

Several Articles are dedicated to how to get an Alternative to a Cash Advance. Also learn what some states like California, Virginia, Florida, Utah, New York and others require for bank statements and the disclosures involved. Solutions for closing requirements that you cannot meet that often cause last minute declines just Before closing. How to pass a bank verification such as DecisionLogic that is required before your business is funded. Find articles on specialty business loans to repair your Truck, against your truck Or vehicles, or against your trailer. Have you ever been asked for an MTD Month to Date statement? We show you how to get it Step by Step and also avoid being declined For problems with your current month such a drop in deposits Since the beginning of the month. Are you afraid you will be declined and not want to apply? Maybe because your credit score is too low or other reasons? Find out in advance the top 9 reasons why Business Loans are declined and what Business loans you can get approved For and close with a low score and other problems. Emergency business money for Payroll and Product Orders. Is your business is a new start up and you do not have 3 months Statements or time in business? Read about the options. Many businesses have low or declining monthly deposits and low Average balances. Find out where and how your business can get Funding with these issues.

Apply

To apply, click on the apply button at the bottom right of this screen, Or on the end screen of this video, or call us at 919-771-4177 or go To smallbusinessloansdepot.com. On YouTube, please subscribe, like and Share.


FAQ on business loans with only 1 months bank statement.

Can we get a loan with just 1 month’s bank statement?

Yes. You only need to provide the first month’s statement as a brand new business.  Businesses that had a strong month since the 1st of the current month can provide a month to date statement to get a higher offer.

What if our first month had low sales?

You may still be able to get a starter offer.   As your sales grow,  you will be offered higher amounts quickly.   This is a relationship product that your business can use like a Line of Credit.

Can we get approved with only a few weeks in business?

You only need 4 weeks or more in business.   If the business began the previous month, then provide information since the beginning of the new month.   This can be a MTD Month to Date statement.

Conclusion

New businesses have limited or no funding options.   This new program allows them to get capital after only 1 month.

Even better, a relationship is established with the lender.   The borrower can get more working capital sooner and for larger amounts as the relationship is developed.

We are a leading funding source for all Small Businesses looking for the best alternatives to Banks.

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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Prove Your Business Address and Location

Prove your Business Address and Location

Prove your business address and business location.  In this article we will review specific documents that prove this.  Learn which documents you can use, and how to get them.

If you cannot confirm your company’s address or location as proof the business exists , contact us.
We can easily assist you in verifying your commercial location.

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6 Examples of Proof of Address  you can use – Further below.

A company owner applies for a small business loan such as a bank statement loan and is approved.
Closing requirements require the owner to provide documentation of proof of location. For working capital, apply below now.

Accepted Documents

The following which will typically be accepted to confirm a company’s physical location.

1. Utility bills.

2. Commercial rental lease agreement.

3. Mortgage statement.  If the real estate was purchased through a commercial real estate loan, then a current mortgage statement can be provided.

4. A current business license. Often accepted if the address has stayed the same since inception and when the original license was obtained. A sole proprietor can provide a license or a schedule C.

5. Articles of Incorporation. A partnership agreement that has the same address on it may also be accepted.

6. Business tax return. Often accepted if the address matches the listing on the loan application.

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FAQ Prove your business address

What is accepted for proof of business address?

A copy of a utility bill, lease, mortgage statement, landlord verification, business license or articles of incorporation should work. See a complete list on this page.

What can I do if my proof is not accepted?

Ask for all the options they will accept as proof of a commercial location. They may accept more than what they list. Pictures and videos of your business may be accepted. A site inspection can work as a last resort.

Why is a P.O. Box not acceptable?

P.O. Boxes are not usually accepted. Addresses that do not have a building or structure, vacant lots and raw land are not accepted as proof of the address and location.

What is a site inspection of my business?

A site inspection is when someone comes in person to inspect your location. This is usually done for loans, vendor relationships and when large contracts are signed between companies. The goal is to confirm the company’s address and that the business is open and operating.

How to prove your company address and location

Step 1: When making any request or application in the name of your company, review in advance what may be required to prove your location.

Step 2: Tip: Gather information you have on your company address in advance.  Have the items available or make a list to discuss.

Step 3: Apply with companies that will accept the proof of business address that you have, or can get.

Narrow down your list of lenders you apply with to those that accept the proof of business location you have.

Step 4: Make contact with funding programs and confirm your business address information will be enough.

Try to confirm ahead of time that the business address information will be satisfactory.

Step 5: Submit a request or application.

When satisfied you will meet the requirements, apply.

Step 6: If you receive an offer, first review the terms including the items required to prove the company location and address. If ready to complete an offer, submit the required items. Get final questions answered before closing. Finalize the transaction.

If you do not have the types of documentation for proof of 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 the owner cannot prove their address which may be required to close a loan.

Are there other ways to verify it?  What is the lender asking for?  There are other options in addition to the ones listed above.
If you don’t have proof now, review your options and fixes below:

How you can fix the following problem:

I can’t prove my business location.

  1. Get an updated business license showing that address. Your city or county can reprint or resend a copy of your permit to operate.  If it shows a previous and outdated location, then submit a correction before requesting a reprint.
  2. Review the address at the secretary of state to see the current information.  If the current information is wrong, contact the secretary of state and update the articles of incorporation.

Remember:  Evidence of your company’s current address and will be required for funding.    This prevents mail correspondences from being incorrectly sent and also helps prevent owners from making changes without the knowledge of the other owners.

Examples of what generally will not work for proof of address:

  1. Virtual office
  2. P.O. Box: post office box
  3. Vacant lot
  4. Raw land
  5. Any location that does not have a building or structure on it
  6. An out of state address.   This happens when the business is located in one state but was originally located in another.
  7. When the business address is in one state and the owners personal home is in another.   This is an absentee 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.    An owner that lives less than 50 miles from their physical operations is usually acceptable.  Examples is a company that is listed in Kansas City, KS, and the owner lives in Missouri.    Other examples are a company listed in Chicago, IL, and the owner’s home address is in northwest Indiana, less than 50 miles away.

We are a leading funding source for all Small Businesses looking for the best alternatives to Banks.

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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How to Get a Used Car Dealer Business Loan

Used Car Dealer Business Loans

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Call 919-771-4177 for more info.

Programs for:
Buy Here Pay Here Car Lots.
Start Up Car Lots.
Small and Low inventory Lots.
Low Monthly Sales Lots.
Bad Credit Owner down to below a 500 bureau.
Exotic and Specialty Care Lots.
Author Biography: Will Sanio

Data Secure 15 Second Request Form Here.

Call us at Tel:  1-919-771-4177, or Question? 

How to get a used car dealer business loan

Preparation

Step 1:  Research companies that specialize in used car dealer business loans. Decide which programs meet your dealership’s needs for the amount, credit, time in business and what you need the funds for.

Search online for used car dealer lenders

Prepare your documents

Step 2: Tip: Prep your information a few days before you need the funding. Amounts over $50,000 need more time to be approved and closed. Car lots selling more than $15,000 per month have a better chance of getting an offer.

Get company information, bank statements and business licenses together days before they are needed.

Look closely at the cash flow in your bank statements. Explain low sales months, overdrafts, nsf’s and low balance periods upfront when you first apply. This can help get approvals, better offers and help avoid declines.

Settle on Top Companies

Step 3:  Contact your preferred companies and ask about their approval criteria.
Tip: Ask if you can be prequalified. Some funders can either prequalify through an online application or a representative by calling in.

Contact the lender. What are their requirements? What are the most common reasons for denial?

Complete your application

Step 4: Apply with the programs the most aggressively solicit used car dealers while matching your needs. Complete an application for funding and provide all supporting documentation needed.

Apply with the best matching program.

Review Approvals

Step 5:  After approval, closely look at the terms and closing requirements. Get all of your closing documentation together and submit to complete the transaction.

If the closing terms are satisfactory, provide all remaining documents and close the transaction to receive funding.

The lender will usually make a final merchant call to you. They will verify that the owner completed the closing documents and is ready to start the transaction. Confirm this and receive the wired funds into your account.

Loans to used car dealers are considered restricted loans by almost all lenders.   We have programs for below 500 credit scores.

F.A.Q. Frequently asked questions

Can our car lot get fast funding the same day or next day?

Same day funding is possible for applications received by noon. After mid day, funding on approvals and closings is possible the next day.

How long does our car lot have to be in business?

Time in business of at least 3 months is needed. The most recent three months business checking account statements are then submitted to pre-qualify.

What types of car dealer loans are available and for how long?

Programs are for dealers that specialize in buy here pay here, new and used cars, specialty, luxury, exotic, and short time in business. There is an option for small lots with low inventory of less than 10 cars. The longest term option is up to 10 years and available in most states. Other programs are short term bridge loans from 3 to 10 months.

How much does bad credit matter?

Low credit scores and bad credit will rarely be declined. Scores can be as low as 400. Having cash flow and positive business checking account balances are the most important approval requirements.

What are the rates?

Rates start in the low teens and depend mainly on cash flow, time in business and credit.

Can we use this financing to buy more cars for inventory?

The working capital can be used for anything such as to buy cars at auction, from wholesalers, customer trade ins, or anywhere your dealership buys.
It can also be used to buy lot space, repairs and improvements.

Used car dealer loan financing. $2,500 to $1,000,000. Tips and steps on how to get a used car dealer loan.

 

 

We are a leading funding source for all Small Businesses looking for the best alternatives to Banks.

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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How To Get a Large Business Loan

How to get a Large Business Loan

Use your business cash flow or assets to get a large business loan.  How to search and contact lenders and learn how to get approved.   Get up to $2,000,000 through these programs.  Fast and easy process with 1 to 3 day closings may be available.

Very little documentation and financials in most cases.  Business loans up to 2,000,000 available with either real estate or unsecured with strong monthly cash flow.

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Call 919-771-4177 for more info.

Search and contact lenders that offer a big business loan and review their approval criteria

If your business generates more than $50,000 per month in gross revenue, or your personal credit score is over 600, then your business has a good chance to be approved.

How to get a large business loan: How to steps, direction, and tips:

How to get a large business loan fast and easy

Estimated Cost: $0
Total Time: 1 Day<
Supplies Needed:  Financia statements if available, Business bank statements, and Tax returns for requests over $100,000.
Time available.
Tools needed: Internet connection, phone, computer

Step 1:  Preparation

Research companies that offer big business loans. Search for programs that best match your business for the amount requested, your annual sales, credit, time in business and use of funds by your business.

Search for companies that offer specific programs that you are looking for.

Step 2: Have your business financial information ready to go.

Tip: Start the process a few weeks before needing business funding.  Larger funding amounts over $100,000 often require more time for an approval. If your business generates more than $50,000 per mont hin gross revenue and your personal credit score is over 700, then your business has a better chance to be approved.

Review your business bank statements and financial information before providing. If there are any problems then write an explanation for those problems before applying. This can include slower business periods during the year, low net income on financial statements or any other reason.

Start weeks before you need the loan if possible. You may need that time to get documentation together.

Step 3:  Settle on the top 2 or 3 programs that best matches your business for your profile and the reason you want the loan.

Contact qualifying companies and ask about their qualifying criteria

Try to find out if your business has a good chance to be approved.   Some lenders may be able to prequalify your business over the phone.

Call and talk with a representative of the most qualifying programs. Tell them your company’s main characteristics such as amount requested, time in business, credit and ask if you will qualify.

Step 4: Submit an application

Go with the most likely program you have determined can get your business a big business loan based on your review and any conversations you had with the lender.   Complete an application for funding and provide the supporting documentation requested to show business revenues such as bank statements or tax returns.

Is the program the best fit? Then apply!

Step 5:  Review approval offers

Once approved, review all details of closing terms and conditions. Make sure you can provide required items. Complete transaction and receive funding.
Was your business declined? Contact the lender and try to find out why you were declined.  Can you do anything to get the decision reversed?  If not, then go back to other lenders you looked at during your initial search. Ask the other lenders if the reason you were declined will be an issue for them.  If not, then consider applying with them.

Review approval terms. If you are satisfied, provide closing stipulations and get funding into your business checking account.

FAQ Frequently asked questions.

How can we qualify for a large business loan?

Time in business of 6 months and revenues over $25,000 per month are needed at a minimum. Higher credit scores over 600 will help get approvals and higher offers. Higher average bank balances also help.

Can we get a larger business loan with bad credit?

Your business can still get higher amounts with bad credit. Strong sales and time in business can overcome a lower credit score.

Can our start up get a bigger business loan?

Your start up will need about 6 months in business, strong sales and credit scores over 575 to have a chance at a higher approval amount.

Do we have to have collateral?

Your business does not need collateral to get a high offer. Strong sales are often enough. Time in business over 6 months and credit of 600 or higher can increase offers significantly.

Does the process take a lot longer?

The process often takes about the same amount of time. More documentation may be requested for amounts over $10000 and can take longer.

For other financing options, please review other alternate financing programs that may better match your business needs, below:

We are a leading funding source for all Small Businesses looking for the best alternatives to Banks.

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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How to Get a Business Loan with Low Deposit Volume

Business Loan with Low Monthly Deposits

If your business was turned down for a business loan for having low deposit volume under $10,000 a month, programs are now available to get approved for business funding.  Your business can get approved with slow sales, and dropped deposit volumes down to less than $10,000 per month. Your business can even get funding with deposits as low as $7,500 per month and as low as $5,000 per month.

START NOW

Call 919-771-4177 for more info.
A drop in sales could be from many reasons.  If so, then go with other loan options that are available now such as a loan on equipment.

How to get a business loan with low deposit volume

  1. Look at your last 3 months business checking account statements and document your total deposits.
  2. Search for a business loan program that specializes in funding with average deposits of less than $10,000 per month.
  3. Review approval requirements and terms and conditions as much as you are able prior to applying
  4. If satisfied, apply for funding.   When you are approved, review approval terms. If you want to close the transaction, request and complete closing documents.
  5. Close transaction
Does your business have low monthly deposit volume? Find a program that your business will be approved for.

Data Secure 15 Second Request Form Here.
Or call us at Tel:  1-919-771-4177.

FAQ Low Deposit Volume

Can my business get funding with less than $10000 a month in deposits?

Your business can get funding with monthly revenues as low as $5,000 per month. Average daily balances of at
least $1,000 per month will help offset low deposits totals. The deposits need to be from real business revenue.

Can we be approved with only 1 low month?

1 low deposit month can often be worked around if it was an exception. Providing the most recent 6 to 12 months business statements to show that the one month was unusual will strengthen your request. Also write an explanation for the low month at the time of application.

How much can we get?

Approvals depend heavily on how low the deposits are, your credit score, average daily balances, time in business and more. Average monthly deposits between $5,000 and $10,000 per month result in $2,500 to $5,000 offers.

How can my business get more money?

You can either get a second position funding or another type of loan. Your business may be an excellent fit for more options based on cash flow, credit, other assets or real estate.

Why do most lenders require $10,000 per month in deposits?

Many funders believe a business with $10000 in monthly revenues may not have enough money left after business expenses to repay loans. The biggest expenses include rental payments, payroll, inventory, utilities, taxes and insurance.

We are a leading funding source for all Small Businesses looking for the best alternatives to Banks.

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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How to Get Approved For a Small Business Loan

How to Get Approved For a Small Business Loan

Follow the steps on how to get approved for a small business loan. The steps below increase your chance of being approved.

START NOW

Call 919-771-4177 for more info.

  1. Step 1  Search online for lenders that allow you to leverage the strengths of your business when you apply.   Consider your revenues and type of operation as well as credit and time established.
  2. Step 2 TIP: Picking a program that matches your company strengths will go a long way towards getting approved.
  3. Step 3  Review the criteria from different lenders needed for approval. Make a list of the top two or three funders and their best matching programs.

    Make a list of the top two or three funders after reviewing the criteria.

  4. Step 4 Contact lenders online and by phone. Review as much approval criteria as you can with a representative. Try to get the best idea possible how closely your profile matches the requirements for approval.

    Get the best idea how likely your business is to get approved for funding with approval criteria.

  5. Step 5 Settle on the best match between different business loan programs and your strengths. Also consider your business requirements and time for funding. Apply for those programs that are the best match.

    Choose the best matching business funding program then apply

  6. Step 6 Read the terms and conditions on any approval.  Make sure there are enough revenues to cover the payments and meet all the requirements. Complete closing requirements to fund the transaction.
    Small Business Loans Depot

    Small Business Loans Depot

Need to get approved for financing?  Apply now below:

Step and tips to help get approved for a small business loan.

Data Secure 15 Second Request Form Here.
Or Question, call us at Tel:  1-919-771-4177.

FAQ :

How can we get approved for a small business loan?

Complete an online application. Provide any additional information on your company’s strengths, such as sales or start date. Doing so gives you a better chance of being approved, for a higher amount, and with better terms.

Is there a minimum time in business required?

Three months are required. Programs with vehicles or accounts receivables do not require 3 months. With revenues, you may be approved right after setting up licensing.

Can we be prequalified to avoid being declined and credit pulled?

Call us and we can review your information and prequalify you over the phone. If your business does not qualify for one product, you may qualify for one of many other loan options.

Can we get a longer term?

Options for 1 to 2 years are available. 36, 48 and 60 month programs with a monthly payment are available for customers wanting a longer repayment.

We are a leading funding source for all Small Businesses looking for the best alternatives to Banks.

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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Get Money To Stay In Business

Need money to stay in Business

What are your options on how to get money to stay in business and afloat during low cash flow times?

There are excellent options to qualify and survive slow sales periods.   Contact us below now.

START NOW

Call 919-771-4177 for more info.

How to get money to keep your business open:

  1. Step 1 Calculate your recent cash flow numbers.  This includes monthly gross and net income.   Look at your assets and your credit.
  2. Step 2 Find lenders that offer funding programs based on your numbers and your strengths.
  3. Step 3 Apply for the program that you determine best fits your company’s profile and has the best chance for approval.

Consider all relevant options such as bank statement loans to make sure you are not missing any opportunities for funding.   You may be able to get funding through programs you were not aware are available.

Get money to stay in business by matching your strengths to company programs.

F.A.Q. – Frequently asked questions.

How can I get a loan to stay in business?
Alternative funding is available when your business is trying to stay open. A bank will not loan in this situation. Show proof of income and assets with bank statements and a collateral list, and you may be able to get either asset based or cash flow capital.
I’ve tried to get funding and have been declined. How is this different?

Can I get a bridge loan while sales recover?
Bridge loans may be approved while your sales rebound. Offer amounts will be lower and increase as your sales increase back from their previous levels.

What if I can’t get a loan to save my business?
Call us and we will help you figure out if you may be missing opportunities. Another type of funding or other option may help you.

These options focus on programs that really match what your enterprise will qualify for.   Too often, companies apply for programs they never had a chance to get approved for.

Some funders focus on better credit.  If your credit is not good, you may have been declined for credit.    It may have been better to apply with a lender that focuses on tougher credit customers.

Some lenders focus on programs that offer higher approval for better credit and cash flow.  With neither, then you may have applied for the wrong programs.

Matching loan programs to your company’s strengths is critical.   Make a mental list of your company’s strengths.   This will give you a blueprint from which to work when you decide on lender.

Ask the lender about their programs first to make sure they are not trying to offer products that do not fit.

Final options after business loan decline:

Final options after business loan declines include:

  1. Adding a strong owner and sharing ownership.   This can bring in money and credit.
  2. Change your business model
  3. Scaling back the company
  4. Major expense cutting.
  5. Temporary closing.

These options may allow you to work around the problem and get back up and running in the short term.

It may also be a good time to change your operational model.  You can do this over the course of a few months and transition into a new product or service line.

Consider a co-signer to qualify.   This can be someone who becomes another owner.   If they have good credit, the may be able to co-sign for a loan for the company.

We are a leading funding source for all Small Businesses looking for the best alternatives to Banks.

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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How to Fix Missed Payments on a MCA Merchant Cash Advance or Business Loan

How to Fix missed payments on an mca cash advance

This article shows how to handle your business loan if it is past due.  Have you missed payments on a cash advance or business loan?

There are several fixes you can take when you are behind on payments. These steps and others can  or make it much less severe.  One step is to payoff the past due amount by refinancing.

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If you are not going to be able to get current, here are options to get out of an mca cash advance, or watch the get out of mca video.

Call 919-771-4177 for more info.

  1. Step 1 Contact the lender.   Let them know you are having trouble paying the advance or loan.  Be prepared to answer why you cannot pay it and how you will plan to catch up.
  2. Step 2 Ask the lender to work with you.  Ask for lowered or suspended payments.   If they refuse ask them to offer you a plan you can handle.   Determine in advance what you are able to pay.   Tell the lender what you can pay and ask them to set up a payment plan for that.   Ask if they can adjust your daily payments as a percentage of sales
  3. Step 3 Follow through on your agreement.
  4. Step 4 *How to Tip: If you will not be able to continue paying the cash advance or business loan, ask the lender for options. There are often options available just by asking for help or letting the letting know you cannot continue to make the payments.
I missed payments and am behind on my mca merchant cash advance and business loan. Here is how to fix it.

What if you cannot pay the cash advance or business loan and cannot catch it up?

If you cannot continue paying the cash advance or business loan, ask the lender what the options are.  For missed mca payments, there are good options for past due borrowers.

If it is not a mortgage loan, the best solution is usually to try to work with the lenders.   When that is not possible, other options include:

1.  Pay a settlement on the mca merchant cash advance or business loan.

If you consider this option, negotiate hard with the lender on how this will be reported on your credit.   You want to push for the best possible credit bureau reporting of this event.    If the lender reports the tradeline as “settled for less than full balance”, this may be the best reporting.

2.  Applying with another lender

This is another excellent option if you can qualify.  Payoff the debts with a new loan.   This works well if the balance you are past due on is low.    If your current past due amounts has not damaged your credit too much yet, this option may work.

3.  Another option is to ask your current lender to modify the loan.

For example:
Your current loan is $500 per month and was for 48 months.   You have 10 months left.   Ask the lender to modify the mca cash advance for a lower payment and more months.  As a result, ask them to lower it to $200 to $300 per month for 20 and 25 months.

Tell them this benefits both of you because you will have a payment you can make and as a result, their loan will be paid.   Some lenders do not want to modify.   However, if you can show them you will be able to pay the past due amount by getting a lower payment, they are more likely agree to it.

Provide documentation to support your request

Prepare a quarterly or monthly profit & loss statement to show the lender that you cannot pay but you will if they lower it.

4.  Take another hard look at all of your current expenses.

Can you easily reduce expenses somewhere else?   Are there services that you are paying for that you really do not need and can cut?   This can include business expenses and personal expenses.
How to fix your business past due loan. 1. Contact the lender. 2. Ask the lender to work with you by lowering or suspending payments. 3. Follow through on your agreement.

FAQ’s  – Frequently asked questions and comments

Question:  How can I fix missed payments on my cash advance?
Communicate with the advance company. One or two missed payments should not be a problem when you are in contact with them. Consider asking for a repayment plan or restructuring if you cannot pay at all.

Question: Will my credit be hurt if I miss payments on my mca cash advance?
A few missed payments should not hurt your business or personal credit. Your credit with that lender may be affected when several payments are missed. You may have trouble getting business funding again from that lender in the future.

Question: Will missed mca payments keep me from getting other business loans?

Defaults, lowered payments and other modifications may affect your ability in getting other business loans. Negotiate hard and you may be able to avoid being declared a default even if you have defaulted contractually.

Accounts receivables financing

Accounts receivables financing is another way to increase the cash flow you need to pay your current past due merchant cash advance or business loan.    This can give you cash now which may be enough to pay the payments you missed and are behind on.

Consider an asset based loan

This includes a loan against equipment.  Funding is between 24 and 42 months and includes a monthly payment.    Earth moving equipment, Yellow Iron and  “over the road” OTR rigs, semi-trucks are usually accepted.

We are a leading funding source for all Small Businesses looking for the best alternatives to Banks.

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.

Follow me and our Videos below!

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Business Loan During Holidays

Business Loan During the Holidays

During the 2024 holidays your business may need a loan fast.    Where can you go to avoid the slowdown your business does not have time for?   We have several programs that are fast and do not have slow processing during a holiday such as 4th of July, Labor day, Thanksgiving, Christmas, New Year’s day, Rosh hashanah, Yom Kippur, and Hanukkah.     Contact us below now for fast business loans during the holidays.  Same day closings often possible.

START NOW

Call 919-771-4177 for more info.

Don’t want to wait until after the New Year to get funding?   Often lenders will require additional items for closing and take a long time to get back to you.

Need a business loan during the holidays?

FAQ: Frequently asked questions on getting a business loan during the 2024 holidays

Is getting a business loan during the holiday season realistic?

Yes you can get a business loan during the slow holiday season. This includes 4th of July, Labor day, Thanksgiving, Christmas, New Years day, Rosh Hashanah, Yom Kippur, and Hanukkah. Fast closings are available during those holiday weeks.

How much slower will processing be?

Processing will still be fast leading right up to the holiday. Offices are open with normal business hours the next day to process applications for funding quickly.

Will staff be available to answer questions?

There will be regular staffing to answer your questions and process your request.

What about closing documentation or closing stipulations.   Won’t those show down the closing process?
Closing documentation may be required.   We work fast through these issues to avoid closing delays.    What if I need a loan the same day?    A loan closing same day is possible.    If you are approved, you may be able to be funded the next day if you cannot be funded same day.

We are a leading funding source for all Small Businesses looking for the best alternatives to Banks.

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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Top 6 Reasons That Business Loans Do Not Close

Top 6 reasons that prevent businesses from closing an approved loan

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Cannot prove time in Business

Businesses often begin as a Sole Proprietorship or Partnership and Incorporate later.
When this happens, the Secretary of State will only show the time in business since the time of the Incorporation.  The time the Company was a Sole Proprietorship or Partnership will not be added.

For example, if a Company was Unincorporated for 3 Years and has been incorporated for 2 Years, it will only show on the Secretary of State as 2 Years Time in Business.   If the Company wants credit for the full 5 years, they should provide the business licenses since it began as a Sole Proprietorship.   Lenders will give the Company credit for the full 5 years.

Not being able to provide proof of the existence of the business

Some States do not require a business license to operate a business.   The owner will operate the business in their personal name and say they run a business.  They will not be able to get a business loan because they cannot prove the existence of the business the way Lenders require it.

Business Account balances are too low or overdrawn at the time of closing

After a business is approved for a business loan, their Business Checking account may be reviewed before closing.  This will include a review of the current balances, the Month to Date balances, NSF’s and Overdrafts within the last 30 to 60 days.

If these are too many NSF’s and overdrafts, the Lender may kill the approval just before closing.   Review your balances and activity to make sure this will not impact your approval.
Cannot pass bank verification 

Many business loans require a verification of the business bank account. This is often done through 3rd Party Vendors such as a DecisionLogic check, and Joinme.  Bank verification can also be done through phone verification.

Cannot pass merchant loan closing call
The lender will often call the merchant just before closing for a merchant loan closing call. The purpose of this is to go over the terms with the merchant, get agreement and simply verify the merchant and that they want to close the loan.

The business cannot provide all of the documentation required in the closing stipulations.

Business loans have a list of closing requirements that have to be met. If the applicant can get most of them but not all of them, they may not be able to close the loan. If you fall short in getting the Documentation required to close a business loan, talk to the Lender about what is missing. You may be able to get the remaining items waived. Another option is to provide substitute information.  Many times alternatives to what was asked for may be accepted.
New business
A new business and businesses less than 2 years old will have a hard time getting funding. There are still some options for a very short time in business that a new operation can take advantage of to get funding.

All of these reasons add up to a long list of why banks don’t lend to small business.  Apply for programs that DO approve small businesses.

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Top Reasons Business Loans Don’t close

Frequently asked questions FAQ: The top reasons business loans don’t close

What are the main reasons businesses can’t close a loan?

Problems at closing and denials include not being able to satisfy closing requirements and
customer background checks. Other reasons include low revenues, bad credit, short time in business and type of business.

What can we do if there is a problem before closing?

Many obstacles to closing can still be overcome and the loan might still close. Possibilities include asking the lender for a lower amount. Ask them specifically what can you do to correct any closing problems and still fund the loan. Some things cannot be corrected but get them to offer solutions to you.

What business loans can we get after the banks have turned us down?

There are many alternative options your business can consider when traditional banks won’t
close the request. Contact us to review your specific situation.

Avoid these problems and you stand an excellent chance of having your business loan close fast.

We are a leading funding source for all Small Businesses looking for the best alternatives to Banks.

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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Top 12 Customer Complaints with Business Loans

Customer Complaints with Business Loans: Top 12

Customers have several common complaints about Business Loans.   Here, we will take a look at the Top 12 customer complaints.  Customers often do not close an approved business loan because of one or more of these reasons. Apply below for programs that fund businesses over these hurdles!

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Top 12 customer complaints with business loans:

    1. The rates and cost is too high.   They want a better rate and terms.
      Customers often want and need a business loan with a lower rate and better terms.
      Another requirement is they need working capital with lower total repayment and lower cost overall.
    2. The approval amount is not enough
      Customers often call in and say they need a higher approval amount and more money
      for my business loan.   They will go for a different loan if they cannot get what they want, or also get a second loan.
    3. The term of the loan is not good.
      Customers also say the term is too short and needs to be longer.  Another requirement is a business loan longer than 24 months.
    4. It is not a Monthly Payment.
      A very frequent request is to get a business loan with a Monthly payment.   Customers really want a Monthly payment if they can get it.
    5. It is a daily payment.
      Applicants will say right away if they do not want a business loan with a daily payment.   Many have had this type of repayment in the past and will not do it again.
    6. It is a Merchant Cash Advance.
      Customers oftentimes do not want a Merchant Cash Advance.   They will say they need a business loan that is not a Merchant Cash Advance. When this is the case, the customer will look for alternatives to a Merchant Cash Advance.
    7. The Prepayment option is not good.
      Another complaint is they want a business loan with no prepayment penalty.   They want to be sure they will get a good discount if they pay off early.
    8. The type of loan is not what they wanted.
      Sometimes customers will tell you they don’t want the type of loan they have been approved for.   They do not want very expensive payments or an unfamiliar product.They are not sure what type they want, but they have decided they don’t want the one being offered.   Have a conversation about other business loan types so Customers will get the loan that works for them.
    9. They don’t want to put up Collateral
      Many do not need or want a business loan with Collateral.   They do not want to put up Collateral, or they do not have Collateral.
    10. Do not want to give a Personal Guarantee.
      Customers may not want to close a business loan with a Personal Guarantee.  They believe they can get an offer without one but most financing requires it.
    11. Whether the loan will, or will not be reported on their Personal Credit.
      A business loan that reports on Personal Credit is sometimes specifically requested.   Other times, customers want the opposite and do not want it reported to the credit bureau.
    12. The request took too long.
      Some requests that are eventually approved do not close because the processing time was too long.   Customers will tell us they need funding quickly.  These are the Top 12 Customer complaints with business loans.   Contact us to apply for programs that avoid these problems.

We are a leading funding source for all Small Businesses looking for the best alternatives to Banks.

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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Copy of Business License

What is a Business License?

A Business License is a certificate issued by a City, County or State Government to a business.   The license legally verifies it’s right to operate and proof of ownership.    Lenders require a business license to close a business loan. Many other types of businesses transactions require a business license as proof the business exists.
Apply below for business loan programs with flexible licensing requirements.   Author Biography: Will Sanio

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Complete the secure App Data Secure 15 Second Request Form Here. Or call us at Tel:  1-919-771-4177. 

Ways to show a Copy of a Business License

F.A.Q.: Frequently asked questions on needing a copy of a business license

Is a business license required to get a business loan?

A business license can be required by the lender. It legally proves that your business exists and verifies the exact legal name of the business in which all contracts and documents are written.

What if we are a home based business?

A residential business address is almost always accepted by counties, cities and states.
If a business is home based and rents their location, the landlord’s signature may be required to show the approval of the property owner.

What do we need to have to get a business license?

A current driver’s license at minimum, valid business address and payment. The Tax Identification number may also be requested.

How fast can we get it?

A temporary license can be issued when applying and the hard copy is sent regular mail.
Businesses that interact with the general public must post their license immediately.

Where do we get a business license?

Business licenses are issued in the city or county for the address the business is located in.

How much does it cost?

Business licenses are usually a flat rate for Corporations at the State level. City
and county charges are often a percentage of gross receipts. The higher the gross receipts, the higher the cost.

How long is it good for?

Most business licenses and articles of incorporation are good for 1 year. States may let companies purchase the license for several years in advance.

What if my state doesn’t require a business license?

Some States do not require one. However, it is in the interest of your business to get a license. Many other companies will request proof of the existence of your business for certain transactions such as contracts, leases and banking.

What is a dba?

DBA stands for doing business as. This is called a fictitious name and how the business is known to the public. As an example, Acme, Inc. dba all star tire.

Is there an inspection of my location before approval?

Inspections are rarely done if the business is not a retail location and does not
serve food and beverage.

Does the name of the owner have to be on the business license?

The name of the business owner does not legally have to be on it. Sole proprietorship licenses do show the owner’s name. Corporations have the names of the owners on the original articles of incorporation and ownership updates at the Secretary of State.
Copy of Business License

Examples:

Business Licenses fall into certain Categories.
– General City or County Business license.
– Professional Licenses.

Get a business license or articles of incorporation if you are new or start up business because you  will need this to operate your business later and get financing.  Professional licenses are often in addition to professional licenses.

For example,  medical licenses such as a physician, dentist and chiropractors require additional licenses. Other types of Professional Licenses can include certain types of Construction, Engineering, Real Estate Agents and many more.

These types of Professional licenses are often in addition to a standard business license required by the city or state.

Did you know?

Some business legally operate without a Business License?
Some States do not require a business license to legally operate.

States may allow, but it can make operating much more difficult for the business.   Other businesses that require a business license to do business with them will not waive their requirement.

It will not matter to them if the State does not require it and will still require one.  Get a business license.  If your business was a Sole Proprietor, save all of the old Business licenses that you had.

Learn more about Business Licences.

Recent examples from the Web:

Consequences of not having a business license.

We are a leading funding source for all Small Businesses looking for the best alternatives to Banks.

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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Business loans with No Tax Returns: How to Get Them

Business Loan with no tax Returns

Several programs are available to get approved for a fast and easy business loan with no tax returns.  Businesses often cannot provide tax returns for loans. Programs are available to get a loan without returns hassle free.  Author Biography: Will Sanio

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How to get a small business loan with no tax returns: How to steps, direction, and tips:

Get a small business loan without having to provide tax returns.

Need a small business loan but do not have business tax returns? For businesses that need funding without tax returns asap,
fast programs are available that can get funding in your account the same day or the next day.

Estimated Cost: $0
Total Time: 1 Day
Supplies Needed:  Business bank statements. Financial statements if available.  Time Available.
Tools needed: Internet connection, phone, computer

Step 1:  Preparation

Review your company’s cash flow information such as bank statements and financial statements.

Contact your accountant to get financial statements.  Determine how much your business needs, for how long and how soon.

Review your company’s cash flow strengths by looking over your bank statements and financials.
Step 2:  Gather the documentation you do have on hand.
Tip: Start the process at least a week or longer before needing business funding, especially when business tax returns are not

available and if your business needs larger amounts

Review the bank statements and any financial information before providing.

prepare an explanation for any slow and low cash flow periods or other issues, before applying.

Giving yourself a week or two lead time will help you find the right programs, apply and get funding.
Step 3:  Research companies that offer business loans with no tax returns required.
Filter your search for programs that best matches your business for the amount requested, your credit, time in business, annual sales and the reason you want the loan.
Look for those companies that meet your specific needs and requirements.
Talk to those companies and find out about their terms and conditions.
Match up with the company that most closely meets your needs.
Find out if your business will qualify or prequalify.   Lenders may be able to prequalify you over the phone
Do a final review of your documentation based on the lender’s requirements
Asking the lender what the qualifying requirements are can save you from even applying.
Step 4: Submit your company’s application

Go with the most qualifying program for your business without tax returns.

No business tax returns required? Is the program a good fit? Then apply
Step 5: Approved or declined
Review terms if your business is approved.  To accept, provide all closing stipulations to fund the transaction.
Was your business denied? Contact the lender and find out why you were declined.  What can you do to get the decision reversed?
If you cannot get the lender to approve your business, then go back to other lenders you looked at during your search.

Ask the other lenders if you will be declined for the same reason.   If not, then consider applying with them.

If you are satisfied with the approval terms, then provide the items needed to close and get funding.

FAQ Frequently asked questions on getting a business loan with no tax returns

Can I get a business loan with no tax returns?

Yes, we have several strong programs that can get your business approved and funded quickly without having to submit
tax returns.

Can we still get higher approval amounts without returns?

Businesses with high revenues can get approved for larger amounts based on the strength of their sales.
No federal or state returns needed.

Will we have to provide other proof of income like financial statements, bank statements or pay stubs?

Cash flow through the bank statements may be requested for the lender to make the maximum offer and calculate
how much your business can pay. Financial statements such as balance sheets and profit and loss are not required.

Example of what to do if your business is asked for returns.

Your company applies for a loan and is approved.   However, the Lender requires the most recent tax return or 2 years tax returns.   If you are new, or have filed an extension, your business cannot provide this information.

Don’t have Tax Returns? Before applying, simply ask if returns will be required.  If so, try to apply for programs that does NOT require returns.   Instead of providing tax returns, you can offer cash flow information from previous years.   This may be referred to as payback months, meaning banks statements for the same months as the repayment of any new loan.

Want a business loan but do not have Tax returns?
Choose these options

 

 

 

 

 

 

Lenders will not scrutinize the returns even if they require them.   They will not review Gross and Net Profit, Business Tax Write Offs and other parts of the return.  However, if they ask for a return, you have to provide it.

Business owners are often afraid to provide a return because they show a net loss.  What can you do?

Ask the lender in advance how closely the return will be scrutinized.  Many loan programs will just get the return to verify it has been filed.

The request for returns are also part of  “closing stipulations”.    Other items that are usually required for closing stipulations include a copy of current driver’s license, in addition to a clear copy of voided business check or copy of a license.

We are a leading funding source for all Small Businesses looking for the best alternatives to Banks.

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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Declined For Time in Business? Get Approved Now!

Has your company been declined for time in business?  We have several loan options if you are new:

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Sales as little as 3 months
Brand New Businesses
Asset based options and fast closing!
Low credit scores and large approvals available. Apply below

Options

declined for a business loan?
3 Month time since start date program
Your company can get money as fast as one day. Provide the most recent (3) months company checking account statements with the one page application above, and you can be on your way to funding within 1 or 2 days.

1 Month time in business Program.

Get a large business loan in you have been operating for more than 1 year. Many applicants get up to 75% of their total monthly deposits.

Low credit score program

Were you turned down for having a very low credit score? Apply for the low credit score approval program and turn a decline into an approval.

We will help you get approved for time in business.

FAQ Frequently asked questions.

What is time in business?
The time starts from the day the company is registered with the secretary of state, city, or county.   It is not the time when revenue has started. Some lenders will look at when the company began having sales as part of their review.
Can we get approved with a few months open?
Cash flow programs for as little as 3 months operating or less are available. Certain asset based programs can be approved with only 1 month.
Can we get a loan being brand new?
There are multiple programs available if you just started. Even companies that have been registered for only a few weeks have an opportunity to be approved.
Why do lenders decline new businesses?
Lenders have statistics that prove the longer companies have been open, the more likely they will stay open. Businesses operating more than 3 years are successful for a significantly longer time.

In summary

Our programs can get you approved today with only 3 months or less since your starting date.  Just because you are new, we won’t stop you from capital.

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10 Most Common Reasons Businesses want a Business Loan

Businesses want money for many reasons.   This post will look at the 10 most common reasons businesses want a business loan and some of the best programs for them.  If your business needs a loan for any reason, complete the application information below.

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10 Most common reasons businesses want a business loan

1) My business is running out of money.
Businesses do not always need money for a specific reason and are just are running out of cash.   This can also happen during emergencies and times of crisis.  During emergencies, essential businesses can often get special business loans from state or federal programs.   Seasonal businesses often have this problem.  Sometimes revenues do not meet business expectations while expenses remained fixed.   The business may have run into problems and needs money to correct or resolve the problem.
2) I need a business loan for expansion.
One of the top reasons businesses need a business loan is for expansion.   There are many reasons for expansion.  In most cases, a successful business wants to take advantage of business opportunities but needs more money to do it.
3)  I need a business loan for taxes.
Customers frequently make the request, “I need a loan to pay business taxes”.
Many businesses need a loan to pay taxes.  This is often
for current and previous taxes as well as business tax extensions and IRS payment agreements .
4) I need a business loan to hire employees and meet payroll.
Another reason businesses often need capital is for the initial expense of hiring employees.  This often includes the cost of expanding the workspace, buying furniture and also the cost of recruiting, interviewing and adding employees to the employee rolls.     Many businesses fall short on their cash flow at times and look for ways on how to get money for payroll.
5)  I need a business loan for inventory and raw materials.
Businesses often need funding for inventory and raw materials.   Business
owners need specialized funding for this purpose.
6)  I need money for Equipment, Equipment Repairs or Vehicles.
Businesses often call in with the request, “I need a business loan for
equipment”, as well as “I need a business loan for equipment repairs”.   This would
be considered a loan against equipment.
7) I need a business loan for Marketing and Advertising.
Companies frequently need a business loan for Adverting and Marketing.  Advertising is more critical for certain industries than others.   Industries that need advertising, such as media companies, retail and online businesses have to spend significant funds on
advertising.
8) I need a business loan to buyout my Partner.
Businesses will often request a business loan to buy out another partner.   Multiple owners are no longer able to get along well enough to continue running the business together.   Callers will call in saying:  “I need a business loan to buyout a partner owner.”
9) I need a business loan to buy a Building and Real Estate.
When businesses become larger, they not not want to keep leasing space.    Landlords may also suddenly raise the rent.    Callers most frequent requests are: “I need a business loan to buy a building and property”, or “I need a business loan to buy my building.”  For this
purpose, callers say they need an asset based loan.
10) I need a business loan for insurance.
Businesses may need to pay for several types of business insurance.
Liability insurance, employee insurance and property insurance are some of the types of insurance businesses must by.    Callers will also call in and say: “I need a loan for business insurance”, as well as “I need a loan for business health insurance.”

FAQ Frequently asked questions on the 10 Most common reasons businesses want a business loan

Why do businesses need loans to borrow money for?
Businesses need loans for many reasons. For example, common needs are working capital, expansion, taxes, to hire employees, payroll and inventory. Other reasons are equipment, repairs, vehicles, advertising, partner buyouts, rental leases and insurance certifications.
Who needs a business loan?
Businesses of all types need business loans, including large and small businesses, start up and new businesses for instance. Businesses are often better off financing specific needs instead of using cash on hand they may need suddenly or for an emergency.

What can you use business loans for?
Business loans can usually be used for any legal reason. If a lender does not want your business to use funds for certain reasons, it will usually be stated in the contract or they will tell you.
What can a business not use a loan for?
Businesses cannot use a loan for illegal purposes. It is also common for a lender to restrict a business from using a loan for specific reasons. For example, a lender may not allow you to use a business loan for personal reasons. If a loan is made to purchase an asset such as equipment or real estate, the loan must be used for that reason and cannot be for anything else. The lender may even pay the seller directly instead of sending funds to the borrower to avoid monies being used for other purposes.

Business running out of money? Click on for immediate solutions
Business loan for expansion. Immediate relief and immediate solutions. Apply now

 

Need a business loan today to pay taxes? Apply now. Fast solutions to pay Federal taxes and State Taxes.

 

 

Summary of 10 Most common reasons businesses want a business loan:
“Business is running out of money”,
“Expansion”,
“Taxes”,
“Employees”,
“Inventory and raw materials”,
“Equipment, repairs or vehicles”,
“Marketing and advertising” ,
“Partner Buyout”,
“Buy a building and real estate”,
“Insurance”

Thank you for visiting our list of the 10 most common reasons businesses want a business loan.

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10 Uncommon Reasons For Needing a Business Loan

Business loan requests are sometimes for unusual reasons.   We will review 10 uncommon reasons for needing a business loan.    If your business needs funding for any uncommon reason, contact us.  Complete the Online Application.  Contact us at the number below.

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Data Secure 15 Second Request Form Here.

1 common theme among these is that businesses need a higher amount of business funding in these cases.

10 Uncommon reasons for needing a business loan:

Natural Disasters, floods, fires

Losses due to natural disasters are probably the most expensive for businesses. Businesses need money after being hit by a natural disaster.  This can be Tornadoes, hurricanes, floods, fires, drought, wildfire, hail, blizzards, oil spills and extreme winters. Businesses may need working capital to cover the cash shortfall because of disasters like these.   FEMA helps many business owners, yet is either too slow for some businesses or cannot help at all.

My business is being sued.

If a business is being sued, it may need money to hire an Attorney and go through the litigation process.   Expenses can be $10,000 and as much as hundreds of thousands of dollars.  There are different types of lawsuits that a business may be sued for that they need funds to defend.

Other types of lawsuits businesses face:

A) Being sued for Malpractice.

Businesses in the Healthcare field are usually the primary targets of malpractice lawsuits they need money for.   Other industries sued for Malpractice include Accountants, Consultants, Construction Companies, Retail Businesses and businesses that need a professional license.   A business may need a loan or money to pay for Malpractice or a Malpractice lawsuit.

B) Business being sued for not fulfilling contract

Businesses are sometimes sued if their contract is not completed correctly. This happens in the Construction industry, and many other industries also.   Many companies need money or a business loan to fulfill a Contract.

C) Business being sued for Copyright infringement

Businesses can be sued for many types of alleged copyright violations.  Copyright lawsuits happen often in the music and entertainment industry.   Trademark disputes,  intellectual property lawsuits and others are the basis of suits.   Businesses need money or a business loan for Copyright infringement lawsuits.

Need money to relocate business

Business relocation requires significant funding.   The bigger the business,  the more relocation will cost.   Relocating is a big expense for any business.   Many businesses need money or a business loan to relocate.

Partner Buyouts or Owner Buyouts.

Businesses often have more than one owner.   Sometimes multiple owners do not get along and one or more Partners want to leave.   Because of this, a buyout of the Partner or buyout of an owner may be needed.   A business owner may need money or a business loan to buyout another partner as a result.

We need a business loan to meet new City, State or Federal regulations.

City, State and Federal Regulations change over time.  Businesses sometimes have considerable cost to comply with regulations.  A company may need a business loan to meet new regulations.

The last 5 of 10 uncommon reasons for needing a business loan below:

Need a business loan for training and licensing requirements.

Business may have to provide training to all of their employees or meet new licensing requirements.    A business loan will probably also be needed for updated licensing and training.   City and State offices also have information on licensing and training requirements.

Theft

Theft causes sudden losses.  Companies need a business loan to recover from customer theft, employee theft,  shrinkage, and also loss of inventory.    A business loan and also a line of credit covers businesses from lost cash flow.

Major Accounting Errors

Businesses have cash flow problems because of mistakes made by Accountants as well as Bookkeepers.
Math errors are probably less frequent mistakes.  Accountants also incorrectly take deductions and file the wrong type of Return.   They may not tell the business owner to increase their estimated quarterly payments either.   These errors cause a higher tax liability.   The business then needs to get a business loan to pay more taxes because of Accounting Errors.  Your Accountant can provide Quarterly reviews to avoid cash flow hardships.

City Infrastructure Repairs.

Cities, Counties and States do extensive street and road repairs.  This also includes Sewer work, pipes and cement work.   States make Bridge and Highway repairs that also affect traffic exits and main roads.  Retail stores are also affected by these County or State Road repairs.  Retail stores located on a main road with major construction work are also devastated.  Businesses therefore need a business loan to also makeup for a loss of Sales and lower cash flow.

Need a business loan to hire overseas technical workers.

Industries cannot find all of the workers they need domestically, so as a result, they must also hire workers from other countries.  Technical fields are another industry that also has difficulty hiring skilled workers.  Hiring workers from overseas is a big expense.  Therefore, companies may need a business loan to pay for the cost of hiring overseas workers.

But what are the main reasons businesses need loan?   Review the 10 most common reasons businesses want a business loan to get helpful tips and steps on how you can get your business loan request approved and funded.

Thank you for visiting this resource.  Visit 10 uncommon reasons for needing a business loan in the future for especially relevant information on unique loan requests.   Contact us for your business loan needs.

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Canadian Small Business Loans

Canadian Business bank statement loans

What type of alternative business loans can I get in Canada?
Canadian companies can find alternative working capital loans available in the United States.

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Another option is a business bank statement loan.

Call 919-771-4177 for more info.

Data Secure 15 Second Request Form Here.

The company’s business cash flow is how they can qualify.  Because of this, the business needs to have the following:

  • $10,000 per Month in deposits each of the last 3 months.
  • 5 or more deposits per month.
  • An average daily balance of $1,500 or more.

How do I qualify for a business loan in Canada?

Review the alternative business loans for businesses in Canada on this page.   Decide which option you may qualify for.   Complete the Online application above or call and talk to a representative and discuss which loan option might be best for your business.

Canadian Accounts Receivables financing

After a Company’s products have been delivered or services rendered to another company, they send an invoice for payment.  Canadian Accounts Receivables financing funds about 75% of the face value of the invoice is paid immediately to the company issuing the Invoice.   When the paying company pays the invoice, the last 25% is paid minus a service fee. As a result, the company’s cash flow is accelerated by 100% during the year

FAQ Frequently asked Canadian business loan questions and requests

Can I get a business loan in Quebec?

We have excellent options for businesses in Quebec. Terms between 3 and 9 months with competitive rates and fast funding.

Amounts range from $10,000 as high as $500,000 for Canadian companies. Establish a relationship now for easy future funding. Underwriting offers fast renewal funding options. Apply above.

Canadian small business loans. Get easy and fast alternative business loans for businesses in Canada. Short 30 second Application.

We are a leading funding source for all Small Businesses looking for the best alternatives to Banks.

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.

Follow me and our Videos below!

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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.

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🇺🇸 Call 919-771-4177 for more info.

Data Secure 15 Second Request Form Here.

Bank Statement Business Loans

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.

 

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.

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10 Problems You May be Causing Your Business – And How to Fix Them

The following is a list of 10 problems you MAY be causing your business. They may not include other major problems businesses face.  This list touches on some long standing problems businesses face in addition to advances in Technology. Apply below for Business Capital

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10 Problems you could be causing for your business

You have a great product and service.  Just pass the information to an audience waiting to hear it.  Not quite.  You need to understanding your customer’s problems, goals, and priorities.  What do they think they need for their business to prosper quickly?   What do they see as their biggest needs and problems?  Understand this and you will do well with customers.  Your customers will feel your business has the skill and competence to solve their issues.

Make your customers feel like they are the most important ones in the world.
Get working capital for your business here.

Not Selling Effectively

Not selling effectively is a consequence not understanding your customer’s needs properly. If your business does not have a correct and full understanding of your customer’s problems and needs, your customers will not be very interested in your products or services.  Continue to improve your sales skills and learn how to sell effectively.    Find resources to help your company continue to improve sales skills.

Not doing proper follow up is a major mistake in business. Your business must  have a system in place for the correct people to do follows up with new and existing customers.  If you have new prospects and did not close business with them on the initial call, you want to follow up with them.   Many businesses effectively use an E-Mail marketing systems.   These may be most effective with existing customers.   Simple followup with new prospects is often is one of the most effective ways to get new customers.

Not keeping up with Technology

Many business owners don’t keep up with technology well enough.  Some keep up with some aspects of trends but there many technology advances and updates that business owners miss.  Subscribe to technology groups, websites and magazines.   Get important updates through E-Mail or on your phone. These can help your company with technology, Marketing, Sales, Manufacturing, Accounting and other updates.

Rejecting Criticism

Many business owners reject most, or all criticism.   There are several reasons embracing some criticism is helpful.  You don’t have to agree or accept all the criticism or feedback you receive.     Much of it is unfounded and may come from friends or acquaintances that don’t know enough about your business.   However, sometimes it may have validity  and be things you haven’t thought about.  Keep an open mind and you may hear important ideas of how to improve your business.

On to the last 5 of 10 Problems you may be causing your business.

Check out your competition

Many business owners do not keep track of their competition.   Your way is not the only and best way to run your type of business.  There are important things you should know. Have new companies recently entered your industry?   Are your competitors offering something good you are not offering?   If you are a retail business, have you checked to see if new stores have opened in your market that sell what you are selling?  These are some of the questions you may really want to know the answers to.

Check frequently to see if new products or services have entered the market that you don’t know about.  If new products or services are being offered by competitors that you don’t have, don’t panic.  Knowing about it sooner rather than later usually gives your business enough time to develop a plan and react to the changes.   If you keep track of industry trends, you may be aware of products in your industry in time for you to be among the first to offer them.

Managing Expenses Closely

Manage business expenses from the highest expenses first, in priority to the lower expenses.   Not managing expenses closely enough is often a major factor in business cash flow problems.  An analysis quickly identifies business expenses that are too high or not needed.

Taking on too much debt to start

Many business owners take on a lot of debt to start a business.  The problem can be made worse by using several credit cards to get capital.   Many businesses need several months or longer to begin generating major revenue.   Making Profit & Loss projections before opening the business can pinpoint a risk of cash flow problems before they happen.  Working with an Accountant before opening can help identify cash flow weaknesses. Another good option is to visit a local SCORE office for business advice.   This is the Senior Core of Retired Executives.   They can provide excellent advice.  Many cities and colleges have a Small Business Development Center that can provide assistance.

No new ideas

Good ideas may come from other businesses.   The best ideas come from within.  Focus on what new paths your business can create.  Try to think of business products, services, techniques, sales, marketing methods you have not thought of before.

 Customer Feedback

Find out what your customers think about your businesses’ products, service and staff. Customers many times are more honest when they are not speaking with you face to face or on the phone. This is true if they were relatively satisfied with your services but had some things they would have preferred to be handled differently.

Customer surveys and after service calls are a good way to find out more about what your customers really think. Offer a discount off future service for giving significant feedback and your feedback should increase.

Technology improvements and putting into action some of the long standing business service improvements mentioned above may be the most powerful way to accelerate your business’ path to success.   Follow the tips above and cut down dramatically on these 10 Problems you may be causing your business.

Thank you for visiting our page on 10 Problems you may be causing your business – and how to fix them!

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How to Get a Large Business Loan: Video

How to get a Large Business Loan

Video Description: How to get a large business loan. Includes options, programs, requirements, approval and the funding process. STEP 1: Call the Lender, STEP 2: Qualifying, STEP 3: When you Apply, Only Provide:, STEP 4: Closing

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Call 919-771-4177 for more info.  Access Video Transcript details here

How to get a large business loan

Steps to successfully get approved for and close.

How to Supply: Cash Flow Statements

How to Tool: Desktop, laptop, tablet or phone

Step 1:  Call the Lender

Call the lender that offers bigger loans and talk with someone that can make an assessment or a pre-approval. Tell them your company’s specific details. Type of business, annual or monthly revenues, deposits, time in business and credit.

Are there clear reasons they might deny you? This helps you know where your business stands. Do you have a good chance? This avoids wasting time with unnecessary declines also.

VIDEO CLIP Below: Call the lender: Give them details :  10 Seconds – 35 Seconds in Clip below.

Call Lenders to match your company’s needs.

Step 2: Qualifying

What is it going to take to get the amount you need? Generally it includes annual revenues. Getting amounts more than your annual gross revenue is hard to qualify for. An amount up to that is easier.

Review your time in business. Short time in business such as less than a year can be approved. The longer the time in business the higher the amount.

Review your credit score. High amounts can be approved with a low credit score, even below 600. The higher the score, the more you have a chance to qualify for.

Also, big business loans into the millions can be backed by real estate. Weekly, bi-weekly, daily or monthly payment options are available depending upon the program.

TIP: There are specialty low rate programs for preferred industries, like retail, restaurant, auto repair, beauty supply and spa, medical, dental, and chiropractors as well as hospitals and emergency care facilities, construction and manufacturing companies, factories, grocery and convenience stores, landscaping and landscape design companies.
Hospitality, hotels and motels, assisted living and nursing homes, golf courses and resorts, cannabis dispensaries.

TIP:  Is your business in an industry that is restricted and cannot easily get funding? Find out what options are available for your business. Used car dealers, real estate, trucking companies, collection agencies, non profits, attorneys, religious organizations, and many other hard to fund types of businesses that have trouble finding options.
For larger bigger business loans, they also include construction companies and contractors, cleaning and maintenance companies, brokers, insurance, mortgage and financial brokers, staffing companies and temporary employment agencies, small and larger logistics and transportation companies.

VIDEO CLIP Below: Qualifying Clip:
36 Seconds -126 Seconds in Clip below.

How do I qualify?

Step 3:  When you Apply.

When you apply only provide cash flow information that helps your request. Don’t send bank statements or other financial information that shows weak sales unless you are required to send it.
Avoid sending information that was not requested. It may be interpreted in negative ways you did not realize in advance.

VIDEO CLIP Below: When you Apply, only provide:  127 Seconds -143 Seconds in Clip below.

Apply for Funding

Step 4: Closing

TIP:  Should be an easy slam dunk? Lots of businesses get declined between the approval offer and the closing for funding.

Examples include: Closing requirements also called stipulations that are reviewed as part of the closing process. They are low recent balances in the business, even overdrafts, NSF’s and overdrawn accounts.
This may happen in the current month that the lender does not know about and why they do a bank verification before closing. Proof of ownership or other financials such as information on other owners, more bank statements, or a tax return could be requested.

If your company is declined, ask what are the reasons and if you can fix it now or in the short term so you can get approved and close. Sometimes you can satisfy the denial reasons, still close and get the money wired to your account.

Finally, a background check will be completed. This can pull up previous businesses the owner had in the past. They may have had a default or slow payment with with other lenders. We can help you deal with these issues and get you funded. Contact us at 919-771-4177.

TIP:  Other big business loan types and challenges companies face trying to get higher approval amounts include specialty business loans to repair your truck, against your truck or vehicles, or against your trailer. Loans for hot shot and some hot shot start up options.

Where to get business loans processed on weekends and in evening hours after 5. Have you ever been asked for a MTD month to date statement? We show you how to get it step by step and also avoid being declined for problems with your current month such as the drop in deposits since the beginning of the month.

Are you afraid you will be declined and not want to apply maybe because your credit score is too low, or other reasons? Find out in advance the top 9 reasons why business loans are declined and what business loans you can get approved for and close with a low score and other problems.

Articles on emergency business money for payroll and product orders. Are your invoices being paid too slow? Learn how to speed up your invoice payments through factoring. Is your business a new start up and you don’t have 3 months statements or time in business?
Many businesses have low or declining monthly deposits and low average balances. Find out where and how your business can get funding with these issues.

Resources on what to do if your business needs funding and has a current federal or state tax lien. Also learn what some States like California, Virginia, Florida, Utah, New York and others require for bank statements and the disclosures involved.
From unsecured cash flow loans like bank statement loans, business line of credit style options, asset based loans on your equipment, trucks, big rigs, construction equipment.

To apply, click on the apply button at the bottom right of this screen, or on the end screen of this video, or call us at 919-771-4177 or go to smallbusinessloansdepot.com. On YouTube, please subscribe, like and share.

VIDEO CLIP Below: Close:  144 Seconds – 300 Seconds in Clip below.

closing the transaction

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Need more money than your cash flow can qualify your company for ?   Watch how to get a loan against your Equipment Video here.

Other options for getting extra funds without putting up your equipment are bank statement loans options.

Check out other options on our homepage smallbusinessloansdepot.com.


FAQ Frequently asked questions on large business loans.
How can we qualify for a larger business loan?

Businesses that have revenues over $25000 per month and time in business over 3 months may qualify for higher amounts. Higher deposit amounts and average balances per month qualify for bigger loans. For some programs higher credit scores or strong financial statements can increase approval amounts.

Do higher amounts take longer to close?

Many of the programs get money to businesses in the same one or two days as smaller loans. Certain longer term programs and amounts over $500,000 can take longer to approve.

Can newer businesses qualify?

A start up can get large business funding amounts if they have had strong sales in the first few months. The business will need to have been operating and generating revenue for at least three months.

Can we get funding from the same program again later?

Yes. When the business pays the balance down to 50% it can qualify for more funding right away. One program is available now in which businesses can get funds after 30 days of timely payments.

Will Real estate and other assets be required?

Real Estate is not required. Customers that offer real estate or other assets can get higher approval amounts. Most businesses close the maximum they qualify for without using real estate or any other assets.

Can we get a monthly repayment and a longer term?

Monthly and weekly repayment business loans are available with longer terms of up to 60 months.

 


 

Many businesses need funding for over $500,000 or as high as $1,000,000 and higher.

Paying off a large Merchant Balance with a loan

You can take a merchant cash advance with a high or large balance and pay it off.     Doing this can extend the term several months longer.  A large merchant cash advance of over $100,000 or over $200,000 with less than 6 months left can be paid off and the term can be extended to 10 or 12 months.  Terms up to 120 months may be available with same day and next day loans.   Payoff your advance today!

Business owners say they have been declined because the amount they asked for was too high.  They requested a business loan over $250,000 or more and were denied.  Our programs are designed for higher dollar business loan needs.

Callers call in and ask:

Use the following chart below to determine what you will need when applying.
$50,000 to $100,000 Business Loan:  Provide an application and last 3 months bank statements.
$100,000, $150,000 and $200,000 business loan.   Provide an application and last 3 months business checking account statements.
$250,000 to $300,000 business loan.  Submit an application, last 3 months business checking account statements and Year to date interim Profit and Loss (P & L) Statement.
$350,000, $400,000, $450,000 and $500,000 Business loan.   Submit an Application, last 4 Months business checking account statements, Year to date Profit and Loss and Balance Sheet.

$500,000, $600,000, $750,000, $1,000,000 and $1,500,000 business loan

$500,000, $750,000, and $1,000,000  business loan:  Submit an application, last 6 months complete business checking account statements.  Provide the last 2 Years business Tax Returns.
$1,000,000, $2,000,000, $3,000,000, $4,000,000 and $5,000,000 business loans.   Submit an application, last 12 months business checking account statements and last 3 years business Tax returns.

Businesses that have been denied by a lender because the amount of the request was too high will still try to get  small business loans another way.   Ask lenders upfront if they have a maximum loan amount and if they have different criteria for different dollar amounts.  If so, what are they?

Because the lender has different lending criteria for higher business loan requests, they may not provide you with the information.   Ask these questions to help get approved and also avoid unnecessary declines.

Show Video Transcript Details
In minutes and seconds.
0:00 Introduction
0:10 Step 1: Give the lender details
0:36 Step 2: Qualifying
0:47 Time in Business
0:54 Credit Score
1:06 Payment Terms: Weekly, Bi-weekly, Monthly, Daily
1:11 Preferred and Favored Businesses
1:36 Restricted Businesses
2:07 Step 3: When you Apply: Only Provide
2:24 Step 4: Closing: Problems and challenges
2:32 Closing Requirements: Stipulations
2:58 Declined? Do this
3:10 Background check
3:27 Other big business loan options
3:45 Current Month to date statement
4:42 California, Virginia, Florida, New York, Utah
5:01 how to apply

How to Get a Large Business Loan

Large business loans, big business loans, most lenders offer something small, or tell you no. [no] To apply, click on the apply button at the bottom right of this screen. So how to get a large business loan.

Step 1: Call the lender

that offers bigger loans and talk with someone that can make an assessment or a pre-approval. Tell them your company’s specific details. Type of business, annual or monthly revenues, deposits, time in business and credit. Are there clear reasons they might deny you? This helps you know where your business stands. Do you have a good chance? This avoids wasting time with unnecessary declines also.

Step 2: Qualifying:

What is it going to take to get the amount you need? Generally it includes annual revenues. Getting amounts more than your annual gross revenue is hard to qualify for. An amount up to that is easier.

Time in business. Short time in business such as less than a year can be approved. The longer the time in business the higher the amount. Credit score. High amounts can be approved with a low credit score, even below 600. The higher the score, the more you have a chance to qualify for.

Also, big business loans into the millions can be backed by real estate. Weekly, bi-weekly, daily or monthly payment options are available depending upon the program.

There are specialty low rate programs for preferred industries, like retail, restaurant, auto repair, beauty supply and spa, medical, dental, and chiropractors as well as hospitals and emergency care facilities, construction and manufacturing companies, factories, grocery and convenience stores, landscaping and landscape design companies. Hospitality, hotels and motels, assisted living and nursing homes, golf courses and resorts, cannabis dispensaries.

Is your business in an industry that is restricted and cannot easily get funding?

Find out what options are available for your business. Used car dealers, real estate, trucking companies, collection agencies, non profits, attorneys, religious organizations, and many other hard to fund types of businesses that have trouble finding options.

For larger bigger business loans, they also include construction companies and contractors, cleaning and maintenance companies, brokers, insurance, mortgage and financial brokers, staffing companies and temporary employment agencies, small and larger logistics and transportation companies.

Step 3:

when you apply only provide cash flow information that helps your request. Don’t send bank statements or other financial information that shows weak sales unless you are required to send it. Avoid sending information that was not requested. It may be interpreted in negative ways you did not realize in advance.

Step 4: Closing.

Should be an easy slam dunk? Lots of businesses get declined between the approval offer and the closing for funding. Examples include: Closing requirements also called stipulations that are reviewed as part of the closing process. They are low recent balances in the business, even overdrafts, NSF’s and overdrawn accounts.

This may happen in the current month that the lender does not know about and why they do a bank verification before closing. Proof of ownership or other financials such as information on other owners, more bank statements, or a tax return could be requested.

If your company is declined, ask what are the reasons and if you can fix it now or in the short term so you can get approved and close. Sometimes you can satisfy the denial reasons, still close and get the money wired to your account.

Finally, a background check will be completed. This can pull up previous businesses the owner had in the past. They may have had a default or slow payment with with other lenders. We can help you deal with these issues and get you funded. Contact us at 919-771-4177.

Other big business loan types and challenges companies face trying to get higher approval amounts include specialty business loans to repair your truck, against your truck or vehicles, or against your trailer.

Loans for hot shot and some hot shot start up options. Where to get business loans processed on weekends and in evening hours after 5.

Have you ever been asked for a MTD month to date statement? We show you how to get it step by step and also avoid being declined for problems with your current month such as the drop in deposits since the beginning of the month.

Are you afraid you will be declined and not want to apply maybe because your credit score is too low, or other reasons? Find out in advance the top 9 reasons why business loans are declined and what business loans you can get approved for and close with a low score and other problems.

Articles on emergency business money for payroll and product orders. Are your invoices being paid too slow? Learn how to speed up your invoice payments through factoring. Is your business a new start up and you don’t have 3 months statements or time in business?

Many businesses have low or declining monthly deposits and low average balances. Find out where and how your business can get funding with these issues. Resources on what to do if your business needs funding and has a current federal or state tax lien.

Also learn what some States like California, Virginia, Florida, Utah, New York and others require for bank statements and the disclosures involved.

From unsecured cash flow loans like bank statement loans, business line of credit style options, asset based loans on your equipment, trucks, big rigs, construction equipment.

To apply, click on the apply button at the bottom right of this screen, or on the end screen of this video, or call us at 919-771-4177 or go to smallbusinessloansdepot.com. On YouTube, please subscribe, like and share.

We are a leading funding source for all Small Businesses looking for the best alternatives to Banks.

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.

Follow me and our Videos below!

VIMEO
YOUTUBE
LINKEDIN
TWITTER
https://developers.google.com/profile/u/willsanio
GitHub
StackOveflow

Will Sanio:  University of Tennessee Diploma – Bachelor of Science in Business Administration with concentration in Finance – Click or Tap to Enlarge Image.
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Asset Based Loan

Top 11 Reasons for Going Out of Business

Is your business having severe problems and is going out of business?   Below are the Top 11 Reasons for going out of business followed by the complete list.

Take the fast, easy, and efficient steps to avoid going out of business.    This may include securing working capital to bridge the difficult period.    We have numerous options for all business situations.

Apply below now! 

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Call 919-771-4177 for more info.

Data Secure 15 Second Request Form Here.

Don’t let this happen to your business! Get funding today.

Top Reasons for going out of business

1. Running out of Money.   Running out of money is probably the main reason for going out of business.   There are different circumstances under which businesses run out of money.  The business is going through a slow period.   Revenues have been low since the business opened.   Find out the top ways on how to get money to stay in business.

3.  Too much debt and overhead.   The owners or the business itself may have too much debt and overhead to deal with.   They can’t handle it and go out of business.

4.  Insufficient starting capital.   Many businesses never really had enough capital to start.   Often there are problems after opening.  This is followed by the business not having enough capital to overcome them.

5.  Unable to get financing or enough financing.   Many businesses need working capital or other types of business financing after starting.  Some of these needs are critical.   If they cannot get the financing needed for equipment or short term working capital, the business may not survive.

6.  Not enough back up capital or emergency capital.    Business owners have liquid assets and net worth.   If the business needs more working capital than

7. Bad Employees.   This is usually employees that are bad performers with low quality work and low production.   Some employees are out sick on leave a lot.

8. Bad Marketing and Sales.   Some businesses have owners with expertise in certain areas.  They may have technical but not sales and customer service.   These other areas can be crucial to the survival of the business.

9. Inflexible ownership.   This is resistance to change or new ideas.   Many business owners have aggressive take charge personalities.   This is often what drives them to accomplishing starting a business.   It can hurt some business owners significantly.  Many business owners are not open to new ideas or alternatives different than the ones they believe in.   They are often very resistant to criticism.

10.  Market changes.   Businesses need to keep up with what is happening in their industry and stay up.  Some businesses show poor awareness to market trends and changes.

11.  Not keeping track of competition.   Businesses that do not keep track of what the competition is doing may be left behind.    Competitors may introduce new products, programs and incentives.

The reasons listed are usually the top reasons for going out of business.  Some solutions and ideas are offered to avoid going out of business.   If your business is closing, the SBA offers a list of items to consider when going out of business.

 

 

 

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Top 6 Business Loan Decline Reasons

What are the 6 biggest business loan decline reasons used by lenders?

In this post we will review what loan companies decline for and what you can do about it.

Tips on easy things you can do to prevent many of these declines.   Use the following list to increase your chances of getting approved for a business loan by avoiding the decline reasons listed.

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Call 919-771-4177 for more info.

Data Secure 15 Second Request Form Here.

Turn your decline into a fast and easy approval above – today!

Don’t let your business get turned down for any of these top 6 business loan decline reasons.

1. Derogatory Personal Credit
Poor, damaged, or delinquent personal credit  of the owner is the main reason for being turned down for a business loan.  Most businesses are less than 35 employees and the personal credit of the owner is usually part of the credit review. If the personal credit score of the owner is low, there are some steps that might be taken to minimize the impact to avoid defaults and the bank calling the loan due and payable in full.

Has your business been declined for a business loan because of derogatory personal credit?
Apply now for fast and easy business loans with bad personal credit.

Short term Solutions:
Research different business loan products  before applying. Try to apply for business loan products that have less scrutiny of the owner’s personal credit.  Talk to the lender first and find out how much of an impact personal credit has on their business loan product.
If there are multiple owners of a business and one owner has better credit, the owner with the better credit should be the first applicant.   If the owner with the better credit is over 50% owner, the application may be approved without the other owner.   This may prevent a decline for weak credit.

1. Longer term solutions:

Get a copy of your personal credit report and look for errors.   You can dispute them with the credit bureau and your credit score will go up.  Any derogatory items close to 7 years old may be on the verge of dropping off your report.  If you have limited credit, this may be a time to consider what new accounts you can add to your credit bureau to make it stronger.

2. Derogatory Business Credit

Businesses can have derogatory business credit.   This derogatory business credit may appear on a business credit report.   Examples are State Tax liens, Federal Tax Liens, Suits and Judgements, Past Due Accounts and Collections.

Solutions:
Get a copy of your business credit report through Dun & Bradstreet and  before applying for a business loan.    Contact the business credit agencies and dispute incorrect information.   The credit agencies will remove information they cannot verify as correct.

3. Insufficient Cash Flow

The lender believes that the business does not have enough recent cash flow to handle the new debt.   A  Profit and Loss statement showing a negative net income may cause a decline.  Overdrafts and NSF’s happen because of poor or insufficient cash flow.

How to avoid this denial reason:
If your business is declined for a drop in recent revenues including month to date, contact the lender to discuss it. There may be alternative solutions.   Your business might be approved for a lower amount.   This can include a starter line that lenders offer just to get the relationship started.   Lenders sometimes do this with borderline decline instances.   They want to take a small risk hoping that the borrower will develop into a good long term customer.
Weak financial statements.

Financial statements are still required for many types of business loans.  If a companies financial statements are weak and show a low net income, decreasing revenues, or other weaknesses, it can easily cause a decline.
How to avoid this decline reason:

4. Insufficient Collateral

Some loan products are asset based but the collateral must be satisfactory or the business loan will be declined.   This decline reason happens often when a bigger business loan is needed.    Lenders will just not issue many unsecured approvals for higher amounts. Real estate backed loans, accounts receivables financing and equipment loans require acceptable collateral.  Even if the customer has excellent credit and time in business, if the assets do not have enough value or other conditions are not here, they may be declined.

5. Time in Business

The time in business requirement varies from one business loan to another and as much as 2 years or more may be required. Ask the lender if there is a time in business requirement.    If there is, ask if it a hard and fast rule.   For some lenders, if the applicant has other strengths in their profile, it may override the time in business requirement and be approved.   Less than 6 months time in business is difficult to approve.    Brand new businesses with less than 3 months sales have very limited, if any, options.

6.Industry.

Some lenders will decline a business just for being in a certain industry.  Often business still apply because they don’t know the lender won’t loan to their industry.   This is an easy decline to avoid.  Put this in the list of questions to ask a lender before applying.   For example, do you lend to my type of business?   Sometimes lenders have preferred industries that they lend to.

FAQ Frequently asked Questions on top 6 business loan decline reasons

What are the main reasons businesses get declined for loans?

The top reasons businesses get rejected for loans are bad personal credit, net income or sales are too low, not enough collateral, short time in business, industry type, and unacceptable business tax returns or financial statements.

What can our business do after being declined for a loan?

Ask what the main decline reasons were. If it was for credit, ask for any credit bureau and business credit scores the lender has and the scores the lender wanted. For cash flow, collateral or financial information declines, find out the minimum requirements and when you can re-apply.

What can we do after being denied for low cash flow with strong sales?

The lender calculated that based on their criteria, your business does not have enough cash flow after expenses to safely pay their new debt. If your business is about to payoff any current debt or has recent increasing sales, then let the lender know. They may reverse their decision or approve a lower amount.

Some lenders have industries that the do not considered favored industries.   They may consider your industry as challenged or place it in a more difficult to loan to internal category.   Ask the lender: Is my industry a preferred industry you lend to?

How to correct the business loan decline

Not all of these 6 top business loan decline reasons have to be corrected.   Some cannot be corrected.   The steps that should be taken are on a case by case basis. Every company has different hurdles to being approved for a business loan.

Using some of the tips above and your business can overcome many of these top 6 business loan decline reasons and get critical business capital.

Has your business been declined for derogatory business credit? Several solutions fast.

 

Has your business been declined for insufficient cash flow? Click here for immediate solutions
In summary, the top 6 business loan decline reasons are:
  1. Derogatory personal credit
  2. Derogatory business credit
  3. Insufficient cash flow
  4. Collateral
  5. Time in Business
  6. Industry

In addition to charge offs,  missed payments are considered derogatory business credit.   The SBA is another resource available to assist small businesses in all industries prepare for business success.   .

Should you worry about all your decline reasons?   What are other steps you can take?  There are other considerations besides these top 6 business loan decline reasons.  For example,  declines for key financial ratios such as debt to income and also declining revenues.

as a result, businesses may get loan terms they don’t want and should consider  Additional action steps in addition to the top 6 business loan decline reasons.

Categories
Asset Based Loan

Get Used Car Dealer Loans with Low Credit Scores

Used Car Dealer Loans and used car dealer financing.

Loan for used car dealer up to $1,000,000.
Used car dealer loans of up to $1,000,000 can now be obtained fast. Terms available from 3 months to 120 months.   Low credit scores under 500 and tax liens can be worked with.   3 Months or more in business.

Complete the secure Data Secure 15 Second Request Form Here.
Or call us at Tel:  1-919-771-4177, or Question?

What types of used car dealer loans can I get?
Used car dealers and new car dealerships now have fast business loan options.   Programs are available.  No financials or Tax returns are required.

Steps your used car dealership can take to get a used car dealer loan.

Search and identify lenders that have used car dealer loan programs and offer used car dealer loans.
For a used car dealership lot that has more than $10,000 per month in revenue and bank deposits,  then it may pre-qualify for a business loan or other types of business financing.   Short time in business less than 1 year can qualify.
Select the program that is the best match for your business and profile, such as revenue, time in business, and credit.
Select the program that is the best match for your used car dealership
Call the lender and ask for details on approval requirements.
If your business meets the requirements, then apply.  Submit any information that will help your application.

If an offer is made for business financing, review the terms.   If you want to close the transaction, gather all closing stipulations and close the transaction.

Complete the secure Data Secure 15 Second Request Form Here.
Or call us at Tel:  1-919-771-4177, or Question?

Car dealer loans

Buy here pay here business loans

Buy here pay car dealers have always had difficulty securing business loans and rarely get financed by banks.   Now they can use financing based on the cash flow of their dealership to get business loans fast.     They need to make several deposits per month and keep at least $3,000 average daily balance in their business checking account.

New car dealer loans

New car dealers can also get financing using their revenues.   The process is also fast and easy.   Just a few business days for financing and a one page application.

Callers request a used car dealer loan,  a loan for a used car dealer or a business loan for a car dealer.

Other requests include loans for a new car dealer, and loans for car dealers.

Callers this week have requested loans for a used car dealer and a business loan for a used car dealer.    Other callers have requested used car dealer financing and financing for used car dealers.    Our most recent customer specifically requested financing for a used car dealer.   The most basic requests are car dealer loans and used car dealer loans.

 

Thank you for visiting our used car dealer resource page again soon.

We are a leading funding source for all Small Businesses looking for the best alternatives to Banks.

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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Categories
Asset Based Loan

LGBT Friendly Business Loans

Business Loans to support the LGBT Community

Start here for full LGBT small business loans and options.  Equal access to business loans.   Consider us for your gay business owner funding resources for alternative loans.

START NOW

Call 919-771-4177 for more info.

 

How are we different?    We will first discuss your business in detail.   Your future business goals and needs will then be reviewed.   From that, the business loan products that are the best fit and can be approved will be discussed.   We stay with you through the entire loan process.   

500 and lower credit scores can be approved.   Tax liens, short time in business accepted.   $5,000 to $500,000.   Short and long term loans. 3 months to 120 months.   Fast turn around.   Same day responses in most cases.   Short 1 page application.   Fast and easy process.   

We will help you get an LGBT business loan fast through this program.

LGBT business owners sometimes encounter discrimination in the loan process.  Our loans avoid these problems.  There is full and equal access to business loans for the lgbt community.  We discuss the specific needs of each business owner in detail.   We help them determine the product that best fits their business now.

We work with and volunteer extra professional assistance to the community.   There are many requests.  Callers call in asking for gay friendly business loans.

Business Loan for Gay and LGBT businesses questions:
Are some of these lgbt friendly business loans programs specifically for the LGBT Community?  
No.   These loan programs have been reviewed to insure they are friendly to the Gay and LGBT business community. All customers are welcome as well.

Business loans for Gay and LGBT Businesses Resources:

For more resources, visit the SBA.

Thank your for visiting our LGBT Business Loan page!

Categories
Cash Flow Loan

Hispanic Business Loans Made Easy

Choose from several hispanic business loan options .  Flexible choices including easy application and personal assistance during the entire process.   Lengths are between 3 months and 10 years.  Approval is available for almost all industries.  Low credit scores, tax liens and new business can also be approved.

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Data Secure 15 Second Request Form.

Call 919-771-4177 for more info.

$5,000 to $250,000.  Fast and easy process.   Just a 1 page application.   Minimal paperwork and also bad Credit is Accepted. Tax liens can be accepted.

These business owners whose main language is not English often have difficulty getting working capital loans.   This also includes foreign nationals who are often not familiar with the loan process in the United States.    We provide extra assistance to these companies.   Many do not speak English and need further assistance.

business loan for the hispanic community

Programs for getting equipment, adding new employees and money for materials.

FAQ Frequently asked questions:

What is provided for  hispanic business loans? 
You submit the same information.   A one page application and the most recent 3 months business checking account statements.

Can I get a loan in my personal name? 
No. The application must be in the business name.

Can we get longer terms?   Yes.   The business can get a short term loan.   This would be 3 to 6 months.   Over 24 months is available.

Other resources:

Another source of information on minority loans is the SBA

Categories
Cash Flow Loan

Start Up Business Loans for: ALL Businesses

What qualifies as a start up business loan?

A business that has started operations and as much as 2 years time in business. Options for all new businesses include low credit scores,  low revenues, collateral based and asset based options.

But some businesses are brand new and just started having sales.
Find out below which start up option your business qualifies for.    Apply below now to get your best option.

START NOW

Call 919-771-4177 for more info.

Data Secure 15 Second Request Form Here.

How to qualify

Your time in business is the date on your business license.  For Corporations, it is the Incorporation date listed with the Secretary of State.   The state will not recognize the starting date of the business until you register with the state.  So register your business as soon as possible because it will make sure your business will has the time in business needed to qualify.   Take the time to pick a business name that you will keep.  There are pros and cons to changing a business name.

Frequently asked Questions FAQ – How to get a start up business loan

How can I get financing to start a business?
Get a start up business loan through these programs that specialize in new businesses. Several options
are available for both limited funds and damaged credit situations.
Do banks give loans to start a business?
Banks rarely give loans to start a business. They ask for several years of tax returns and financial statements. Revenues must be steady or increasing each year and the business needs to be an industry they prefer.
Where can I get a start up business loan?
Alternative lenders provide start up loans rather than banks. Approvals for start ups are based most heavily on the sales of the business. Collateral and credit can make the difference also. Start up money will be difficult if the business has not yet opened or had sales.
How can I get a business loan with no money?
Business loans with no money down are available when your business has sales. Other options are offering collateral to get
approved.
Can I get the business loan in my personal name?
Business loans must be in a business name, not in your personal name. First get a business license for a sole proprietorship, or articles of incorporation for corporations. Open a business checking account with a financial institution.
Get business information, including information on start ups at Planet Money

Categories
Articles

Restricted Industry Business Loans – Approvals Now

Restricted Industry Business Loan

Video Description:How to get a business loan when lenders consider your industry to be restricted or prohibited. In summary, they don’t like what your business does. Examples of affected business types and options.
Restricted Industry Business Loan (Video Transcript: Click to Expand)

Introduction

[ city street sounds ] Welcome to smallbusinessloansdepot. [ young woman says Ooh! ]

Loan Options for Restricted Industries

Do you have a Construction company or other practices that are being denied by traditional lenders for restricted industry? Click on the link below, smallbusinessloansdepot.com. We have loans available for flexible and restricted industries that most lenders do not want to work with you because they send you a letter that says you are considered a restricted industry to them. We have programs specifically designed for many industries that have difficulty with traditional lenders.

How to Apply

Click on smallbusinessloansdepot.com.

Call to Action

Complete the contact us form today. Get started today on financing. Don’t spend your time having lenders tell you that they think you are a restricted industry. Call us today for financing. Call us at 919-771-4177 or go to smallbusinessloansdepot.com. On you tube, please subscribe, like and share.

START NOW

It is when your operation type is considered risky and undesirable by lenders such as a loans for used car dealers.   Other companies such as adult or porn, attorneys, financial services such as check cashing are restricted from doing business with you, and investors do not even want to lend to you.  Author Biography: Will Sanio

lender doesn’t like your industry ? We do

These restrictions cause your business to be declined for a business loan and prevent you from getting a larger business loan.   Go to the video page for how to get a large business loan.

Work with a partner that values your relationship and does not see you a restricted business!  To just watch the Video go to the Restricted industry business loan stand alone Video page.

Call 919-771-4177

Fast and easy programs.  The highest approvals with best terms available, including new programs in trucking such as a truck repair loan to fix your vehicles.   Also find out if you might be considered a  HIGH RISK ?

Let others say no.   We say YES!   Apply Below now & get a loan today!

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  1. Use the lists provided below to determine if your type may be considered restricted by others.
  2. Identify investors and sources that will loan to your sector.   Contact them and ask for their qualifying criteria.   Select the best match based on your needs and their approval criteria.
  3. If approved, request and review closing stipulations and documents.  Submit all required closing documentation.  Complete merchant call if required.
  4. Receive funds into your checking account.
Find a loan product here regardless of industry type.

 

Restricted industries or elevated scrutiny businesses – Types:

“Restricted Industry List”

Accountants, Accounting firms, Accounts Receivables Factoring.
Adult Entertainment, Escort Services, Gentleman's Club, and adult industries.
National and Regional Airlines.
Attorneys
ATV Dealers, ATV Sellers and RV Dealers.
Auto and Home Supply Stores.
New Auto Dealerships and used car lots and dealerships.
Auction Houses.
Bitcoin.
Bus Companies.
Construction.
Cemeteries and Funeral Homes.
Consignment Stores, Child Day Care, and Churches.
Collection Agencies, Check Cashing, and Bail Bonds.
Credit Reporting, Protection and Restoration.
Consulting.
Collection Agencies, currency exchanges, and Wire Transfer.
Criminal conviction, arrests by owner.  This may include past 
misdemeanors or a felony offense.  
Dating and Escort Services.
Debt Consolidation.

More Examples:

Direct Mail.
E-businesses and Commerce.
Educational, Colleges and Schools.
Factoring, Financial Institutions, Financial Transactions Firearms sales, weapon sales
Financial services and lending
Financial Transaction Processing, Financial Advisors and Freight Forwarding  Forwarders.
Fitness and Recreational Facilities.
Fraternities and Sororities.
Freight Brokers.
Gambling and Gaming Establishments.
Gas Stations.
Holding Companies, Insurance Agencies,  and Investments.
Home Building, construction, and housing related.
Home based.
Horoscope and Fortune Telling.
Import and Export.
Income tax return and preparation.
Insurance Agents and insurance brokers.
Internet and online
Insurance Agencies, and  Investment Opportunities.
Lawyers.
Lotteries and raffles

Further Examples:

Kiosks. Lawyer and lawyers.  Attorney and Attorneys. Legal practice and Legal Practices. Marinas. Mining and Quarrying. Magazine Subscriptions, Mail Order Coin Sales, Mobile Home Dealers, Mobile Phone Dealers, Wireless Stores and Cellular Stores. Mortgage Lenders and Mortgage Reduction. Motorcycle, Scooter, Motor Home and Camper Dealerships. Night Clubs. Non Profit and Grant Writers. Non Bank Cash Advance. Oil Pipelines and Gas fields. Online Stores, Online Retail Stores, Online Merchants, and Online sales. Payroll advance, Pawn Shops, Thrift Stores and Consignment Stores. Personal Trainers.  Precious Metal Sales and Coin Sales. Printing and Printers. Real Estate Management, Investment, and Brokers. Recreational Vehicle Sales.

Restricted types continued:

Schools.
Sports Events Advice, Sports Instruction and Recreation Instruction.
State Agencies and Government Agencies.
Taxi and limousine service.
Ticket Brokers, Time Share Investments and Tour Guides.
Travel Agencies and discount clubs.
Tobacco and Electronic Cigarettes, Firearms and Gun Stores.
Trucking, Transportation, Logistics, and Sea Transportation.
Used Car dealers, Auto Dealers, new car dealers and Truck Dealers.
Used Furniture Stores and Furniture Retailers.
Vehicle Inspection.
Virtual Auction Houses.
Vitamin Retailers.
Wholesale Clothing.
Wireless phone and accessories.

Elevated Scrutiny Industries

Other sectors are included in "elevated scrutiny".
Home health care.
Web development, Credit and debt counseling.  Financial advisors and consultants.
Elevated Scrutiny often includes:
Annual Membership Clubs.
Appraisal Services.
Auction Houses.
Benefit Packages.
Boat Sales.
Buyers Club and Coupon Books.
Detective and Private Investigation.
Donation.   Door to Door Sales.
Employment Agencies.

More elevated scrutiny industries:

Financial Aid Services.
Flooring, Tile, Blinds and Windows.
Formal wear.
Fortune Tellers, Psychics, Astrologers and Spiritual advisors.
Furniture Stores, Homeopathic Remedies and drugs insurance.
Modeling Agencies and Beauty Pageant Organizations.
Mortgage Lender or Mortgage lenders
Multilevel Marketing and Pyramid Sales.
Online Electronic, High Ticket Electronics, Prepaid Phone Card and seminars.
Sports Memorabilia.
Telemarketing, Ticket Agencies, Time Share.
Web Design and Hosting.
Utilities.
Seasonal and challenged industries

Challenged industries are similar to those that get elevated scrutiny. Underwriting will consider them, but under a tougher approval process because of what they do.

Construction Companies:

Lenders often have many restrictions and high scrutiny for construction. They are either automatically declined or are offered lower amounts with shorter terms.

Insurance Companies and others:

Insurance is hard to get funding for.  Insurance companies receive commissions for policies sold but then the have to pay the insurance broker who sold that policy.

Another example is a travel agency which also keeps a small percentage of what they receive and pays out the rest.

Convenience stores that sell gasoline often have to immediately pay back out a high percent of those sales.  As a result, most of the revenue they show coming into their account goes right back out.

Lenders have to make a decision and approval amounts based on their net income.

Seasonal Companies

What is a Seasonal Business?

Any company that has peak sales and operations during the same months every year.   The rest of the year they are either slow or closed.

They are especially scrutinized by lenders who will ask for more documentation such as additional years tax returns and payback months bank statements from previous years.

Examples of Seasonal include:
Accountants and Tax Preparation Services.
Bridal Wear,  Catering Halls and Floral.
Moving and relocation.
Jewelry,  Shipping, Golf Courses and Ski Resorts. Other seasonal operations are nurseries, ice cream shops and amusement parks.

Example: Customer Case
Santa Fe, NM.   Pueblorides, a used car dealer completed a $45,000 working capital line.  They are a small used car dealer in the Pueblo, NM area.   Used Car sales are almost always a restricted industry and we are able to assist them.   They were turned down by several banks.  With this funding, they were able to increase the number of vehicles on their lot.

Getting funding in a restricted category
Businesses that have been denied for the type of operations they have must find a reliable partner.   Ask upfront if they work with you and consider a loan.

Preferred Merchant List
They may be called favored industries.

If the investor has categories like this, they usually don’t want to tell you.   Ask what type of loans they like to do.   These questions will point you in the right direction and avoid unnecessary declines!

FAQ Frequently asked questions.

How do I know if my business is considered restricted by lenders or not?

Ask before applying if they have programs available for your type of operation, because sometimes they don’t want to tell you. Our loan programs lend to all sectors.

What does restricted industry mean?

A business whose type of operation has much stricter rules for approval.  Other lenders stay out of it because they see it as a higher risk for delinquency, defaults and losses. Sometimes they just don’t have expertise in that field.

What do challenged and prohibited industries mean?

These are industries lenders will scrutinize much more and require a longer time in business, higher credit scores and revenues. Used car lots, construction, and trucking are examples. Ask if they have any limitations on lending based on your type of business.

Are new companies restricted by lenders?

Many loan companies do not loan to start ups. Check before applying if start ups have restrictions or are prohibited. Our programs work with 3 months in operation and longer.

We are a leading funding source for all Small Businesses looking for the best alternatives to Banks.

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 headquartered in Winston-Salem, North Carolina, and First Atlanta Bank in Atlanta, GA. Specializing in Traditional and Alternative lending.

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Categories
Asset Based Loan

Open Tax Lien Business Loans – Get Resolution, Today!

The place for businesses to get money to pay federal or state liens with, or without a payment arrangement, behind them.

Your business can choose from several options to get a business loan to resolve the debt, even with an open tax lien that has no payment arrangements.

Act now and resolve your business back taxes for good.

START NOW

🇺🇸 Call 919-771-4177 for more info.

Data Secure 15 Second Request Form.

Open tax lien business loans

Program # 1:   Business funding based on the assets of the business.  If the business has over $10,000 per month in sales, they may be able to get a business loan based on their sales.

Commercial real estate with equity can also be used to payoff the open tax lien.   At closing the tax lien is paid off from the proceeds of the loan.   Another option is to use business equipment. Get capital based on business equipment.  Use the funds to payoff the tax lien.   These options can also be used to pay a tax lien that has a payment plan and also tax extension deadline balances.

Business loans with an IRS payment plan

There are several business loans that can be obtained for a business with an IRS tax lien that has a payment plan. A business can use the revenues of the business or the hard assets of the business.  This can be Real Estate or Equipment.

Business loans without a payment arrangement with the IRs.

A business that has a tax lien without a repayment plan can be financed.   Businesses needing immediate help can now quickly use their revenues or assets to get working capital or a business loan.  The process is fast and easy.   Up to 5 to 10 business days and just a one page application.

Resolve your open business tax liens with several quick programs.

Finally, other sources of information related to tax liens may be found at the SBA small business administration site.

FAQ on business and open tax liens

What is an open tax lien?

An open tax lien is a lien that has been filed by the irs or state government against a person or business that does not yet have a payment plan approved for repayment.

Can I get a business loan with a tax lien on my credit bureau?

There are several business loan options for businesses with a tax lien or open tax lien that are usually paid off at closing. Options are based on assets such as real estate or equipment as well as on cash flow.

Do I need an offer in compromise from the IRS before I can get a business loan?

A formal oic is usually, but not always needed. Real estate or equipment backed transactions may allow for payoffs of irs or state liens at closing. Smaller tax liens may not require an offer in compromise to close a business loan.

How do I know if I have a tax lien against me or my business?

Registered letters are sent by the IRS and state when liens are filed against you or your business. It will also appear on your credit bureau and against real estate you own. The county real estate office will have a record of liens against property.

Should I pay a tax lien if it has already been filed and damaged my credit?

Most lenders will not approve a personal or business loan with an active tax lien. Companies and vendors you do business with may be reluctant to enter into a contract with one on your credit file. The IRS also has the power to seize any of your assets without notice.

Categories
Articles

Business Partner with Bad Credit? 4 Quick Workarounds

Have a business partner with bad credit?

Pick from several loan options when you have a  business partner with damaged credit.    That partner can even be you!

An associate with a low credit score will cause challenges.

4 fast fixes below are designed for EXACTLY these situations.

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Data Secure 15 Second Request Form Here.

Call 919-771-4177 for more info.

Apply above now and get business funding today with business owners that have low credit scores.

Temporary Options and Solutions:

1. Good Credit Owner: Applicant #1

The stronger credit owner should always be the first applicant on any request.

Never list the bad credit owner first. A strong credit owner may be enough to carry an approval and cause the lender not to reject for remaining bad credit.

2. Change in Ownership Percentage

The most impact that can be made fast is lowering the ratio of ownership of the partner with bad credit.  They may not agree to this.    However, lowering it to less than 20% should prevent declines and less than 10% would be even safer.

This will not be popular with many owners. Companies can consider options including a remix of company stock ownership.

Higher salaries and a commission structure can be increased. Another compensation is to pay more towards IRA’s, Pensions and Savings plans.   The change can be temporary.

3. Change Articles of Incorporation

If the partner with hurt credit agrees to lowering their stakeholder amount, the Articles of Incorporation should be changed to reflect this.  Many States show ownership breakdown in the Articles of Incorporation.

4. Updating the Secretary of State

Update the Secretary of State listing which lists information on the company.  Remove the owner with bad credit, or their lower percentage.  List the owner with better file as the main owner.

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FAQ Frequently asked questions on getting a business loan with a partner with bad credit

Question: Can we get a loan if my business partner has bad credit?

Answer: Search for lenders that offer programs specifically for business partners with bad personal credit and low bureau scores. Ask about approval requirements in advance, including a minimum credit score.

Question: What can we do after being denied a business loan for my partner’s low credit scores?

Answer: One option is to lower their ownership percentage at the secretary of state to below 20%. Some lenders won’t require them on the application or decline for derogatory trade lines if their shareholder percentage is very low. Another option is to remove them entirely as owner of the business.

Question: Should we try to fix my business partner’s credit instead of taking them off the business altogether?

Answer: Work on improving the bureau first if there is enough time. They can be lowered to 5% ownership or less and avoid being reviewed by many lenders.


How a bad credit partner negatively affects a business

Getting approved with a low credit score partner.

Options are more limited when applying for financing with a partner that has derogatory personal credit.  Lenders may decline when the ownership split goes over 20%

Some funders will not pull a bureau if the shareholder percentage is less that 20%. If the percentage is less than 5% or 10%, more lenders will not look at the information of those owners. If the business partner with a derogatory file has close to 50% interest, then chances are much higher the request will be declined. This is especially true with more traditional lenders like banks and the SBA.

Once the company has taken care of the financing needed,  the owners can consider longer term programs for derogatory history.   Should an owner with bad credit fix it or wait it out?

Getting a business location

Renting a location

Once a commercial location is found, the company owner’s credit is looked at. Landlords will pull a bureau.
Damaged credit may cause a rental request denial. Discuss this with the landlord. If the other owner has a very good file, the landlord may approve the rental request and lease the property.

Buying a location

If your company wants to finance the purchase of a location through a commercial mortgage, the lenders will also look at all the owner’s credit. The level of scrutiny will be higher than with a rental request, including full financial information.

Establishing business trade accounts

Many companies establish trade accounts.   Companies check the business and personal credit of the main owners when a trade account is applied for.   Significant negatives in the file may be a reason for denial.   Not being able to secure important trade accounts can be very damaging and cause the business to be short of the inventory, equipment and other critical needs.
Even if the business can secure the trade accounts it needs, the terms may be more expensive because of the partner with bad history. This will translate to increased costs to operate.

Obtaining Government and Private contracts

When a business bids on private or government contracts, the personal credit of the owners is reviewed. If there is a business owner with a severely damaged bureau, it will be more difficult to secure these contracts. The contract request may even be denied for this reason.

Background checks

There are many reasons why a background check for a business loan may be completed on the owners.  Some of the reasons have already been listed. If a background check is requested, it will include a bureau.  Bad trade account history on any of the owners may be a reason for denial in a background check.

If further assistance is needed, the SBA has excellent resources.

Categories
Asset Based Loan

Help Getting a Business Loan

The Best Expertise for the specific Business Loan you want

Do you need help getting a business loan?   If you and your business has experienced going to traditional banks or alternative lenders and not fitting into one of their programs we have some options and free counseling.  Find solutions, learn and understand which programs are best to help getting a business loan for your business.

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Options for help getting a business loan include options based on assets such as equipment assets, and based on just the sales of your business.

We will discuss your company’s particular situation and needs.  We will help you determine what the best funding options are for your business.   Once that is identified, we will help you get together any paperwork you need for that program and get you started.
Most businesses have the easiest time qualifying for either the loan against assets or loan using bank statements.

Many businesses that have been denied financing due to either unacceptable credit, collateral or financial statements have complained that if they have significant sales, so why can’t they get funding against their sales?   We agree.   We have assistance programs that provide help “getting a business loan” through just your company’s revenues or equipment.   The funding functions similar to a business line of credit.   The approval is based mostly on the business’s total monthly deposits, average daily balance and time in business.

We will provide help getting a business loan by assisting your business with the processing.  Just provide your most recent 3 months complete business checking account statements and a short one page mini-app.  Other ease of program include:

Fast and easy processing
No financial statements to provide
Easy personal credit and time in business requirements
Quick funding through a wire into the business checking account
within one to two business days.

Approvals are up to 125% of the total monthly deposits.  If a business deposits $50,000 per month, the business may qualify for up to $62,500.  The amount they will qualify for will depend further on the time in business and average daily balance.   Terms are between
3 and 18 months, while most approvals are for 6 and 9 months.  The customer can borrow and repay repeatedly.   Once the customer pays the original balance down to about 40% of the original balance, they can borrow against the line again.   The best way for help getting a business loan is to get the assistance of an experienced representative.  Early payoff is limited and the customer will not get much of a discount.

We need to talk about time in business.  The business only needs to be operating for 9 months, though any time in business more than 2 years means you will have more of a chance of being approved and increase the approval amount.   All other things equal, a business that has been in business for 3 years will get higher approvals than a business that has been in business for only 6 months.

There are more choices for help getting a business loan through the loan against assets program.  A business can get working capital using either their computer electronic equipment, machinery, industrial equipment, construction equipment, dental equipment or medical equipment.  Loan sizes are from $10,000 to $250,000, with just an application only for most cases up to $40,000.   The business just provides a one page application and equipment list.   Up to 75% of the current value of the equipment can be obtained.

Terms:

Terms are 24, 36, 48, or 60 months.   There are early payoff options, although they are not favorable or give a large discount for early payoff.   The funding is set up either as a lease or an equipment finance agreement.  Leases are designed to provide the biggest deductions but are not the best for early payoff.

Sample transaction in which a business received help getting a business loan.

Sparks Engineering needs $50,000 in working capital.  They complete a one page application and equipment list.  The list includes technical equipment such as measuring instruments as well as computer equipment, including Servers, technical engineering software and hardware.

Their bank statements show they are depositing an average of $60,000 per month.   They are approved for $30,000 on a loan based on bank statements and $30,000 on a loan against their equipment.   The $30,000 loan based on bank statements is for 9 months.  The loan against equipment can be done for 24 to 60 months.   Sparks Engineering does not want to have the entire $50,000 financed for only 9 months because the monthly repayment would be too high.   They decide to take $20,000 with a 9 month term and $30,000 with a 36 month term.

Both sets of documents are E-Mailed to the customer.  They complete and return the docs.  After the docs are checked for accuracy, a decisionlogic bank verification and final verbal verification is completed with the customer.  Once the customer confirms the transaction, funds are wired into their account within 24 to 48 hours.

FAQ’s:

Most frequent Requests:
– I need a business loan.
– Get me a business loan.
– Help me get a business loan.
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.

Question: How much of a loan can we get?

Answer: The amount depends mostly on the amount of your business’s sales, the amount of equipment the business has, the time in business, and the credit.

For more information, you can visit Money Planet

Thank your for visiting our help getting a business loan resource page!

Categories
Asset Based Loan

Why The Bank Declined My Business Loan: Tips on What To Do About It

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Are you asking yourself why the bank declined my business loan?

Where can you be approved?  Helpful tips to turn a decline into an approval and find other business loans.  Match your business to small business loans that you will get approved for !
What caused my business to be declined and what are the most common decline reasons Common reasons are:

  1. Bad credit
  2. Delinquent or missed payments
  3. Insufficient cash flow

If you have been turned down for any decline reason, contact us.  We specialize in difficult to approve businesses and business loans and have programs that can approve your business for any decline reason.

If you think the bank declined my business loan for wrong reasons, then the first step is to call up the company that turned you down.

Determine if you are speaking with someone that has the knowledge and experience to provide you with useful information about the decline.  If you received a letter, call and confirm the decline reasons.
For more information on strategic reasons, read why banks don’t lend to small business.

Reasons why your business loan was declined

FAQ Frequently asked questions on why the bank declined my business loan

Why don’t banks lend to small businesses?

A high percent of small businesses fail in the first 5 years, so they are considered a higher risk than larger businesses. A small business has to have excellent personal and business credit, strong collateral and financial statements to get approved at a bank. In most cases only certain collateral is accepted that can be easily liquidated with a value between 200% and 1000% of the amount of the loan. Financial statements must show steady or increasing gross profit and net income.

Are there alternatives to banks for business loans?

You can successfully get a business loan by understanding the different alternatives available in the marketplace. Then understand what it takes to get approved and the reasons you may be declined. Understand the strengths and weaknesses of your business and apply for the best matching program.

What can I do after the bank declines my business loan?

Ask a loan officer to discuss all of the decline reasons. Also ask how you can correct those to get an approval and if there were any other concerns. Get information as specific as possible and consider alternative business loans while you are working on the bank’s decline reasons.

More info on why the bank declined your business loan

Missed daily payments

You have an existing daily or weekly Merchant Cash Advance and you have missed payments on the advance.   Missing daily payments is a major reason why a new loan request may be denied.   Missed daily loan payments may can a renewal request to be denied.

Average Daily Balances too low

This decline reason means that your daily ending balances were too low over the month.   Lenders have different balances that they want
and often will not tell you.    Many lenders often want at least $1,000 Average Daily Balance consistently in your account.

Inconsistent Cash Flow

Business cash flow has fluctuated too much from month to month. In some months the cash flow meets the minimum required by the program and in other months it does not.

Declining Cash Flow

Total monthly deposits into the account have been declining month to month from recent low sales.  Even if the average still meets criteria, the lender may still feel this is a reason for the turndown.

Does not meet criteria

This is a general decline reason.   the lender does not want to tell you what this means

Month to Date MTD

This a decline reason that often happens with Merchant Cash Advances.   The Month to Date activity is requested for the current month and the approval be declined or reduced when current months deposits are lower than the previous three months.

Ask if significantly lowering the amount of the request,  adding a strong co-signer, or adding more collateral would cause them to reconsider and possibly approve the application.  Speak directly with the credit department that makes the credit decision.

If any of the reasons you are declined for a business loan involve credit, you will want to contact at least one of the credit reporting agencies to determine what is on your credit file.   You may already know most of what is on your file, though you should get a copy of your file to confirm it.

If there are any inaccuracies, you should dispute them with the bureau.   This is easy to do and can improve your bureau without significant effort.  You will succeed in getting derogatory information removed when the bureaus cannot prove the derogatory reporting is accurate.

Once you accept what is on your credit report, begin looking for other alternative loan options.   First determine what are the strengths of your business and weaknesses of your business.   When you contact companies, find out as much as you can about what their alternative loan options are based on.

Instead of choosing the business loans you like best, organize the loan types in terms of what your business is most likely to qualify for.  Of those loan options,  then decide which ones you believe you should proceed on.

Other Loan Options

Discuss the loan options with the representative and speak with someone who is knowledgeable, rather than someone reading from a script.   If they don’t give you logical answers to your thoughts or concerns, try to speak with someone else.  Don’t feel that you must get all the funds you need through 1 type of loan, or all of it immediately at that time. There may be 2 loan types that you should proceed on.

If your business needs $100,000 in total,  and you only qualify for $50,000, this may still work by getting the funding in segments over time.   You can take the $50,000 you qualified for and also work on getting the rest of the funding required over the course of the next few weeks or months.  Chances are you did not need the entire $100,000 immediately.  Most businesses that receive $100,000 do not spend it all within the first 30 days.  These steps are important when your business has been declined.

For additional resources to help you prepare for future business loan requests, you can
also visit the SBA.    The SBA government site has numerous resources which can assist your business.

Thank you for visiting our resource page on what to do if you are declined for a business loan.

Categories
Asset Based Loan

Business Lines of Credit: How to Get The Most Difficult Business Loan

In most cases, a business line of credit is the most difficult type of financing to get.   Business owners should look at the terms.  This  includes interest rates, number of months, total amount of the repay, and early payoff considerations.

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FAQ Frequently asked questions on how to get a business line of credit

How can I get a business line of credit?

Time in business of two to three years is often required. Other requirements include a 680 or higher credit bureau score, full financials and industry requirements. Full financials means 3 years business and personal tax returns, a personal financial statement and interim financials. Interim financials are a year to date profit and loss statement and balance sheet.

Why are business lines of credit so difficult to get?

A business line of credit is hard to get because it is set up to be available indefinitely to the borrower and does not have a limited term. Lenders consider this long term exposure to be high risk and require a longer history of business success with increasing gross and net income. If the business shows low net income and flat revenues, they are unlikely to be approved for a business line of credit.

Can my lender require me to suddenly payoff my business line of credit?

An annual payout provision and the lender being able to call the loan and require payoff at anytime is legal and enforceable when it is written into the contract. These provisions are extremely risky for borrowers. Lenders sometimes call loans because they decide to lower their risk models, or when they are being acquired by another lender. They may call loans even if the borrower has a clean payment history. Borrowers do not know in advance their loan is going to be called and often cannot pay it off immediately. Their business could fail because lenders may be able to seize their accounts receivables, real estate or any other collateral attached to the line of credit.

Some lenders put conditions on a line of credit that negates all of the other advantages of the financing.  Lenders may require the borrower to put up their home as collateral.  Borrowers should realize this becomes a home equity line of credit.  Borrowers are then giving their home and business assets as collateral. Why not not consider a home equity line of credit then?

Borrowers may be better off looking for other financing first. Attempt to negotiate the terms of the approval with the lender when your business is using real estate as collateral.

Categories
Asset Based Loan

Annual Payout Provision on Business Loans: What is It?

Definition of Annual payout provision

When a business has to payoff their loan to $0 once per year.

When approved, lenders sometimes have this annual payout requirement.

For low doc working capital that do NOT require annual payouts,  complete below

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In most cases, banks are the institutions that require annual payout provisions on business loans.

The balance has to be paid down to zero at least once per year.  This is a major negative that borrowers should be very cautious about.

Don’t mistake this for a minor aspect of the transaction because it could end up being very hard for the companies to do.   Very few can payoff a balance on any debt once per year.

Borrower considerations

If an annual payout provision is not met, what can the lender do? If the company does not pay the balance off once per year, the lender may have the right to:

  1. Call the loan due and to be paid in full immediately or face a declaration of default.
  2. Raise the interest rate
  3. Impose heavy penalties and fees.

Do they have the right to take some or all of the collateral?   Can they liquidate any listed stock or bonds that were pledged?  If so, how likely is it the lender may do this?

Will the lender liquidate assets fast or only if the borrower goes very far past due?   These questions need to be asked.   Borrower that pledged  free and clear collateral such as real estate as security may have high risk exposure.

The borrower needs to consider the requirements if real estate is secured for the transaction.   For transactions larger than $100,000 or more, the borrower must closely monitor their cash flow during the year.

Even for businesses that have high annual sales,  coming up with a significant amount each year is challenging.

Consider your average monthly bank balance as an estimate of the most they can come up with to meet an annual payout provision.  That amount is the maximum balance they should carry on their loan during the year.

Categories
Asset Based Loan

Why are landlord waivers required for Business Loans?

Landlord Waiver

 

What is a landlord waiver and why are they sometimes required for business loans?

In many cases the need for a landlord waiver is questioned by the borrower.   Why do lenders require these for many popular small business loans such as a loan using bank statements? The lender has made an asset based loan or loan against equipment, such as vending machines or restaurant equipment.

 
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To get funding without a landlord waiver closing stipulation requirement, apply below.

 

Lenders require landlord waivers to avoid or minimize losses for businesses with bad credit or slow pay as well as default on previous loans.   Many business loans include collateral that is on the premises of the borrower.   The landlord waiver allows the lender to enter the property and obtain the collateral in the event of a default.   If the lender did not have a signed landlord waiver, they could not enter the place of business of the borrower to take their collateral.   Landlord contact information will be ask for if this is required.

Without the landlord waiver

The lender cannot legally enter and repossess collateral.  The owner of the property can seek recourse against any lender entering the premises without permission of the landlord.  There are some business loans in which a lender asks for a landlord waiver but does not consider it critical for the loan.    This requirement is one of the top customer complaints with business loans.

A lender normally considers a landlord waiver absolutely critical if they ask for it and will not fund a transaction without the waiver.     Lenders worry that a landlord will refuse to allow them on the business property.   If this happens, the lender may not be able to recover their collateral if there is a default.

Why do I need to get a Landlord waiver?

Example: In the vending industry

Lenders that finance multiple vending machines will not fund transactions without all of the required landlord waivers.   Lenders that finance vending machines know that if they finance 10 vending machines, those 10 machines may be in 10 different locations throughout a metropolitan area.   If the borrower defaults, the lender would have to go to 10 locations to pick up the collateral.   They also cannot simply show up at a place of business to pick up collateral.   They must also have to have permission from the owner of the property because they will be uninstalling equipment, which is considered making a change to a property.   The lessee agrees in the lease not to make a change in the property without the permission of the landlord, so the lessee must contact the landlord.

What is a landlord waiver? Are landlord waivers required for a business loan?


In the event of a default on this asset based loan lenders do not want to contact 10 different landlords.    Each landlord would have to agree to an on site repossession.    The landlords know if they agree, those business that leases space from them may go out of business.

The landlord does not want the lessee to go out of business.    The landlord may want to deny the request.

These are the reasons why lenders will ask for this when a business loan is first closed.

The SBA also offers info on small business and negotiating with landlords.

Categories
Asset Based Loan

Use Multiple Loan Parts to get Larger Business Loan

Need a larger business loan and can’t qualify for one?  Get it all in multiple business loan parts!   Get several smaller loans to reach the total amount your business needs.    Apply below now for programs designed for your business to get the total it needs.

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A business needs $100,000 and cannot qualify for $100,000 in one loan.   However,  the business can qualify for approximately $35,000 so first obtains a $35,000 loan.   After the first loan, it applies for a second funding and even a third round of funding.   This strategy makes it much more likely for the business to raise the full capital it needs.

Many businesses do not use all of the funding in the first weeks.  Many times, the business uses the funding over the course of weeks, and even months after closing.     Some businesses may get $100,000 all at one time and use it over the course of 3 months.    That is almost the same as if they had obtained the funding in 3 parts of $35,000 over 3 months.    Restaurants often do build outs and spend the money over time instead of all at once.

FAQ Frequently asked questions on multiple loan parts

What does multiple loan parts mean?
Getting more than one loan as part of one effort.    When a person or business cannot get approved for the entire amount they want in 1 loan, they get multiple parts until they get the full amount they want.

Why don’t I just ask the 1st lender to approve the total I want?
Each lender decides how much they are willing to approve your business for under their guidelines and risk model.    A second or third lender may give you more funding because they are approving less and not taking on the total risk
themselves if there is a default.

Do I have to let each lender know how much I got from the other ones?
No.   Each lender will see that you have a new account, had a recent inquiry, or
may check your recent back activity to see if you just got any new loans.   They will ask about recent loans if needed.

 

 

 

 

Categories
Asset Based Loan

Changing your Business Name: Pros and Cons

There are many reasons why changing your business name is necessary.  It may be re-branding, expansion, or other good reasons.  Maybe the business name was bad when the company was set up with the secretary of state.  But it may also be for not good reasons, such as solving an image problem.

When it comes to financing, a name change is not a good idea and should be avoided.   Even if the business can prove it is the same company and only the name was changed, this explanation has always been looked at warily by lenders.   Often lenders see a name change as a new business.

If your business needs working capital such as a bank statement loan during the change, Apply below.   Our programs are the most flexible available with the toughest credit options.

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This hurts significantly in a financing request because if a company has been in business for 7 years, and changes the name in the last 2, it will almost look to a lender like the business is 2 years old.

Check your business credit report.  If the business credit reports have the old company name, this will hurt.

If the business credit reports have the new company name and the business start date shows the full 9 years in business, this scenario will be penalized far less severely.

One answer would be to only somewhat change the business name, if possible.

Example

An example of large corporate name change for a bad reason was Valujet.    Valujet suffered a major crash in the Florida Everglades in the late 1990’s and primarily for this reason, changed their name to Airtran.

A change from Alley Pizza to Back Alley Pizza is minor and not noticed by customers.  If the name change is too much, then it sounds like a totally different company.

FAQ Frequently asked questions.

Will we have problems if we change our business name?

Existing customers may not recognize the new name of the business. You may also have to start an entirely new business with the secretary of state. This also causes your business to be totally new legally and the time in business under the old name stops.

I bought an existing business. Should I keep the old name?

Keeping the old name makes your name recognition and branding much easier. You can have the full time in business under the old name and the time in business of your new name. Getting loans and establishing business relationships will be easier.

What should I do if I have to change our business name?

Contact your existing customers and let them know what the new name of the business will be. Explain the reason for the change. Create marketing materials to use at your place of business for your current customers to see. Contact the Secretary of State and try to change the name of the existing business profile listing without creating a new profile.

Conclusion

Changing a business name has more drawbacks than advantages.  Above all the business loses it’s main brand identity.

However, if it is a must, then prepare for all the consequences in advance, thereby minimizing the damage.

Categories
Articles

Business Bank Statement Loan

Definition of Business Bank Statement loan:

Businesses can get a business bank statement loan based on their deposits.  Since almost all businesses have sales, almost all businesses pre qualify.   The funds can be used for any reason, including 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.

Complete the
Data Secure 15 Second Request Form Here.
Or call us at Tel:  1-919-771-4177.

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.
– Monthly deposit totals as low as under $10,000 a month may qualify.
– 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 as low as 400 may be 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.

Additional Factors

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.

Thank your for visiting our resource page!


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

Categories
Asset Based Loan

Chiropractor Practice Business Loan

Get a chiropractor practice business loan that almost all practices can qualify for.  Programs include loans based on your practice’s gross sales, total deposits, practice assets, or equity in real estate.

Apply below today.

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🇺🇸 Call 919-771-4177 for more info.

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Chiropractor practice business loan with many term options

Loan for a chiropractic practice benefits

  1. Credit scores below 500 are considered.
  2. Approvals as low as $2,600 and up to  $1,000,000 or more with no restrictions on the use of funds.
  3. Use the funding like an loc line of credit.   Your practice can borrow, repay and borrow again in many cases when there is a need.
  4. Limited paperwork.   Just a one page application and most recent (3) months bank statements.   Same day closings available.
  5. Use the funds to increase revenues of the practice such as hiring more employees, advertising, expansion, increasing office space,  and any other reason.
  6. No upfront processing fees or upfront application fees.

How to get a chiropractor practice loan

Step 1  Search for lenders that offer chiropractor practice loans.   Review program options and consider how the program can help your practice.

Step 2 Tip  Practices that have operated for more than one year can qualify for better terms.

Step 3  Review your chiropractor practice profile to the funding programs available.  Select a short list of programs that will do the most for your chiropractic practice.

chiropractor practice loan

Step 4  Contact the lenders to determine as best as possible whether your chiropractic practice will be approved if you apply.  Also confirm the advertised program benefits.

Chiropractor practice loan

Step 5  Pick one or more programs and submit an application for financing.  Provide any documentation that strengthens your request even if it is not required.  This can include financial statements, tax returns, or other information.

Chiropractor practice loan

Step 6  When you receive an offer, review all the terms and conditions.   If you are ready to close, provide all documentation required for closing.    Check if there is a right of recision period.

Frequently asked Questions:

Question: What if we need more medical financing than we are approved for?
Answer:  A second additional funding can be considered.   If the practice has the cash flow for more funding, then more funding can be approved.  A practice that qualifies for $50,000 can close the 1st transaction, then get a 2nd position  for $25,000 for a total of $75,000.
*TIP:  A second part or second transaction is often called a “2nd position”. 
Question: Our chiropractic practice does not have assets and revenues are only about $225,000 per year.  Can we get an offer?
Answer:  A practice with little assets and sales of $225,000 per year may still qualify for up to $25,000 based on the cash flow and customer profile.

What ownership percentage is required for a chiropractor practice business loan?

a minimum 50% ownership is required.    When there are 2 owners at 50% ownership, the stronger credit of the two 50% owners should be listed 1st.   the weaker credit should be the co-applicant.
If one of the owners has very weak credit then only the strong credit applicant should be on the application.

Are financials required?

Financials are not required for transactions under $250,000.   No tax returns, personal financial statements, or interim statements are requested in almost all requests under $150,000.   For requests over $250,000, the practice may want to provide financials to strengthen the chance for approval and the approval amount.

Learn how to get funding for your practice with any problems.   Apply today and get funding the same day or the next day.

Categories
Asset Based Loan

Loan Against Equipment Video: Monthly Payments!

Get a Loan on Equipment

Video Description: Use Business equipment to get money for your business. Construction Equipment such as Yellow Iron, Trucks Rigs, Vehicles, and Trailers. Low credit scores OK.

Apply Now

Get a Loan against your Equipment. Construction Equipment as well as Trucks, Rigs and Trailers can qualify.  Monthly and Bi-weekly payments are available.   To visit the video only page, go to
How to get a loan against your Equipment:VideoA similar transaction is a Sale Leaseback. To watch the video visit
Sale leaseback on equipment Video or go to full instruction
page, Sale leaseback on Equipment.

 How to get a Loan against Equipment

How to get a loan on your business equipment assets.

Supply: List of your Free and Clear Equipment

Tool: Desktop, laptop, tablet or phone

1: Create a List

Make a list of your free and clear paid equipment

Get pictures and info on: vehicles, rigs and semi’s, pick up trucks, construction equipment, trailers and other
Equipment.

TIP: The lender may payoff valuable pieces with a low balance

How to get a loan against equipment: make a list

VIDEO CLIP below: Make a List of Your Free and Clear Equipment:  2 Seconds –
13 Seconds in Clip below.

2: Provide Cash Flow Information

Provide your last few months bank statements to show cash flow.

Get your last few months bank statements and any other financial a lender may request.

VIDEO CLIP below: Provide Cash Flow Information:  14 Seconds – 16 Seconds in Clip below.

3: Match with a Lender

Match with a lender that offers loans against equipment.

Call and ask about amounts and Terms

Match with a lender that makes loans against equipment

VIDEO CLIP below: Match with a Lender:  17 Seconds –
21 Seconds in Clip below.

4: Apply

Apply and get your best chance for approval by working closely with a rep.

Apply

VIDEO CLIP below: Apply:  22 Seconds –
25 Seconds in Clip below.

5: Complete

Close the transaction and gather all closing items: Proof of ownership, titles, pictures or more.

TIP: Low credit scores O.K.

Finish by signing the contracts and getting funded.

close the transaction

VIDEO CLIP below: Complete:  26 Seconds –
33 Seconds in Clip below.


Apply Now

We are a leading funding source for all Small Businesses looking for the best alternatives to Banks.

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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Show Video Transcript

Loan against Equipment

Video Transcript: In minutes and seconds
0:00 Introduction
0:02 Make a List of Your Free and Clear Equipment
0:14 Provide Cash Flow Information
0:17 Match with a Lender that Offers Loans on Equipment
0:22 Apply
0:26 Gather required Documents and Close Transaction

[ desert wind whistling ] How to Get a Loan Against Equipment.

[ engine running ] Make a List of your Free and Clear Paid Equipment.

Get Pictures and Info on [ engine idling ] Vehicles,

[ engine revving ] Rigs and Semi’s, [ revving continues ] Pick Up Trucks,

[ pressure releasing ] Construction Equipment,

[ duck quacks ] Trailers and Other Equipment.

[ counting money ] The Lender may pay off valuable pieces with a low balance.

Provide your Last Few Months Bank Statements to show Cash Flow.

Match with a Lender that Offers Loans Against Equipment.

[ desert wind blowing ] Call and ask about Amounts and Terms.

Apply and Get Your Best chance for Approval by working closely with a Rep.

[ race car engines ] Close the transaction and Gather all Closing Items.

Proof of Ownership, Titles, Pictures or More.

[ water bubbling ] Low Credit Scores OK.

Finish by signing the Contracts and getting Funded.


Need more money than your Assets can get ? Get extra funds without putting up your equipment here using a bank statement loans option.   Or just visit the bank statement loan video page here.

Check out other options on our homepage smallbusinessloansdepot.com.

For businesses that do not have enough assets but need a larger business loan, read how to get a large business loan, or just visit the how to get a large business loan Video page and watch.

In a loan on equipment or vehicles, the owner keeps the equipment or vehicles and retains ownership when it is paid off.

This asset based option is often used as one way to get a large business loanOr Call us at 919-771-4177.

START NOW

Data Secure 15 Second Request Form Here.

Or Call 919-771-4177 for more info.

Qualifying equipment includes many types of construction and industrial equipment, business and commercial business vehicles. This includes tractor trailers, big rigs, commercial vehicles and semi -trucks.    Is your truck down?  Find out more about a truck repair loan here, or just watch the Truck Repair loan Video here. You can even get a loan on a trailer!   Low credit scores down to 500 and below may qualify.

Data Secure 15 Second Request Form Here.

Call 919-771-4177 for more info.


FAQ Frequently asked questions on a loan against equipment or vehicles.

What is a loan against equipment?
A loan on equipment lets businesses use the equipment or vehicles they own outright to qualify for a business loan. Borrowers can get a loan against construction equipment as well as tractor trailers and semi-trucks. Other qualifying assets include business vehicles and some types of machinery. The approval process is usually one or two days and the collateral stays on your property.

How much can I get?
You can get up to 60% against the current retail value of qualifying pieces. If your equipment has higher than market value, then provide documentation to prove the value from upgrades or customization.

How do put a value on the pieces?
Asset value data is used for each equipment type. The prices of comparable pieces on sale through industry leading vendors and suppliers may be used.

How old can my assets be?
Most trucks can be up to 8 years old. More than 8 years can still be funded with reduced approvals. Construction pieces and machinery can be older depending on the type, manufacturer, model and age.

Do I need to have proof of ownership?
Proof of ownership will be needed. Title, registration or bill of sale can be used for proof of ownership. Proof of purchase may also be needed and can be a paid invoice, loan or lease payoff letter, or bank proof of payment.

Can you take trucks or cars as collateral?
Free and clear trucks or cars including big rigs, semi trucks, OTR over the road tractor trailers, dump trucks, and vans may be used as security. Standard trailers such as big tex and gooseneck can be pledged. Cars, trucks and passenger vehicles may qualify if they are used partially for business.

Cnc milling machines, 18-wheelers, rigs, tractor  trailers qualify.   Machine tools may also bring significant working capital.

Construction equipment such as front end loaders, bobcats, skid steers, bulldozers, ditch witches, woodworking equipment, semi trucks, 18 wheelers, tractor trailers may also qualify.

Your business makes money by using equipment rather than owning it.   Get the unused cash in your equipment and use it for cash flow in your business.

Business loan programs are open, approving and funding small business loans on construction equipment, some large machinery, commercial vehicles, big rigs, semi trucks, Over the road tractor trailers OTR, vans, dump trucks, and even trailers such as gooseneck trailers.

Submit the one page loan against equipment application and also the equipment list . Decisions are usually made in 1 day.   Funding happens within five business days.   $150,000 total funding is available.

Tell us the type of loan you are looking for.   Callers ask for different types of loans, including a loan against construction equipment.   Others ask for a loan on equipment using their construction assets.  Some callers request a loan on machinery.

Underwriting reviews the age and condition of the equipment.  Complete the equipment list.  Use the most valuable and newest equipment on hand.   Older equipment may qualify.  This includes trucks and tractors.   Through this loan against equipment, loans against a tractor-trailer is approved.  It is also called a loan against an 18 wheeler as well as a loan against semi-trailer truck.   Other products are a loan against a big rig, and loan against a semi truck.

Top 7 vehicles to get a business loan against: 
1  Commercial Vehicles
2  OTR Over the road trailers
3  Big Rigs
4  Semi Trucks
5  Dump Trucks
6  Trailers
7  Vans

The following are examples of equipment and vehicles that can qualify under the program!

1. Cat 314ELCR
2. Cat TL943
3. Doosan DX 300LL-5
4. Ford F250XL and Ford F350XL
5. Ford F450
6. John Deere 225DLC
7. Kenworth T370

Thank you for visiting our loan against equipment resource page.

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