close Archives • SmallBusinessLoansDepot

Is closing your business checking account to stop an mca cash advance a good idea?

Shutting down your current account and opening a new business checking account is a bad idea and the worst way to get out of a merchant cash advance. Consider much better alternatives to stop an mca such as Payoff and Consolidation options, other unsecured cash flow options and asset based. Apply below.

START NOW

Or Call 919-771-4177 for more info.

Lenders may consider closing an account an intentional default.
Closing your checking account from which the payments are debited may be in violation of your contract. Read your Contract!

Choose much safer alternatives, such as:

✅ Refinancing
✅ Consolidation
✅ Payoff
✅ Lower Payments
✅ Longer Terms

Get started on safer, better solutions. Apply Now, below:
Call Tel: 1-919-771-4177.

FAQ frequently asked questions on closing a business checking account to stop mca cash advance payments

Can I close my business checking account to stop a cash advance daily debit?

Closing your account is not allowed and may be considered an intentional default. Call the cash advance lender and try to work out a solution. Payoff or consolidation options are available if you are not offered a repayment plan you can pay.

What will they do if I close my account without telling them?

It can be called an intentional default and you can be sued. They are much more likely to take legal action against you and your business through a lawsuit filed in state or county court. There could be accusations of fraud if accusations of an intentional fraud are made.

What are better options?

Working with the cash advance lender to negotiate a lower payment is almost always better than closing the account. That should only be seen as a possible last option under extreme circumstances. In many cases, the bank has called the loan due and you must come to a negotiated solution with the lender to avoid a default.

The following is what many debt settlement programs tell customers to do.

Sign a contract which allow them to represent your firm in communications with lenders and mca merchant cash advance companies after missed mca payments.
Pay their company to start the process.
Close your business checking account per their instructions or advice.
Allow them to represent you in negotiations.

There are several problems and possible severe consequences to closing your business checking account to stop paying cash advances or loans and signing a debt settlement contract .

The lender can also consider this an intentional default or fraud.
The lender or mca company can file a certificate of judgement and may also be able to debit funds in other accounts you may have at the same bank or other banks
You may not be able to talk to the lenders or cash advance companies directly any more even if you want to. Language in the contract may not allow you to talk contact the funder directly
You may not have influence or say in the final agreement.

The contract you sign take power and decisions out of your hands and puts much of it in the hands of a 3rd party.

Other options to closing your business checking account

Contact the lenders directly and try to discuss your financial situation and reach an agreement with the lenders yourself.
Payoff the merchant cash advances with other loans if the balances are low enough
Discuss your financial situation with a business attorney
Filing bankruptcy

The advantage of some of these options in general is that they either show you are sincerely trying to work with your lenders to settle your debt, are forming a coherent strategy to do so, or have officially determined that you cannot pay. These also have advantages over closing your account.

Have you been told to close your business checking account to get out of an mca merchant cash advance? Don’t do it.

close my business checking account to get out of an mca merchant cash advance — Have you been told to close your business checking account to get out of an mca merchant cash advance? Don’t do it.

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.

Top 6 reasons that prevent businesses from closing an approved loan

START NOW

Call 919-771-4177 for more info.

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.

Data Secure 15 Second Request Form Here.
Or Call Tel: 919-771-4177

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.

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