Businesses have long looked for financing based on Sales, rather than requiring excellent credit, collateral and financial statements. A Gross Sales Loan is available now. Funding ranges from $5,000 to $250,000 with a fast turnaround. Upon approval, funding can take place within 1 business days. 4 months time in business and a 500 or higher credit score is required. In some instances, the credit score can be below 500. What is a Gross Sales Loan?
Features and benefits
Only 3 months in business required and credit scores below 500 accepted are also accepted.
This loan is set up in practice in similar fashion to a line of credit. Your business decides how much in funds are wired into your business checking account. The customer is approved for $50,000. 50,000 is then wired into the customer’s account within 1 – 3 business days after approval. Upon repayment, the customer can renew the line for another round of funding.
Frequently asked questions:
Question: We have 2 major business checking accounts with significant balances. Can we combine the two accounts to get a much larger line size?
Answer: Rather than do 1 large line size for 2 accounts, we can establish 1 line for each account. This allows your business to accommodate the cash flow needs for each account. It also prevents the business from overextending it’s available cash flow from 1 account.
Question: Our Sales went down from the previous year to the current year. Will that hurt our chances?
Answer: Your business still has an excellent chance of getting an offer. We will look at the most recent three to six months of gross sales to determine what the approval amount will be. If your sales in the most recent three to six months went down dramatically from month to month, then the approval amount for the loan based on gross sales may be lower than if the sales had been steady. Higher sales in the last three months will give you a higher offer.
Question: After we pay it off, do we have to re-apply again from scratch?
Answer: You only provide updated statements for the last 3 months to renew. Funds are wired into your business checking account at closing.
Question: Are financials or collateral required?
Answer: Collateral and financials are not required to qualify. Depending upon the amount of the approval and the customer’s requested amount, the customer can choose to provide financial statements in order to qualify for an even higher possible amount.
Question: What if I don’t use the line?
Answer: Nothing happens. Submit the most recent statements when your business needs funding again.
Sample Gross Sales Loan Transaction:
Magic Muffers in Doraville, Georgia needs $30,000 in working capital. They did not qualify for other types of loans and another bank declined them for a property loan.
Magic Muffler has $450,000 on sales per year. They apply for a Gross Sales Loan and complete a one page application. The company also submits their last 6 months business checking account statements.
The approval for Magic Muffler is for $35,000. The customer wishes to proceed and gets the loan documents in their E-Mail. They fax back the completed loan documents. The paperwork is reviewed and a final verbal verification of the transaction is completed with the customer.
Funds are wired to the customer’s account within 24 hours.