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 withdraw the approval. 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 DecisionLogic, and Joinme. Bank verification can also be done through phone verification.
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.
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.
Customers have several common complaints about Business Loans. We will take a look at the Top 12 customer complaints with business loans. Customers often do not close an approved business loan because of one or more of these reasons.
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 a business loan with lower total repayment and lower cost overall.
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.
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.
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.
It is a daily payment.
Applicants will say right away if they do not want a business loan with a daily payment. They have had this type of business loan in the past and they will not close business loans that have a daily payment.
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.
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.
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 an expensive business loan or want a different type of business loan. 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.
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.
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 a business loan with no Personal Guarantee. There are very few business loans that do not require one.
The loan will, or will not be reported on Personal Credit
A business loan that reports on Personal Credit is sometimes requested. Applicants insist on a business loan that reports on their personal credit.In other cases, customers want the opposite. They want a business loan that does not report on Personal Credit and want to make absolutely sure there will be no reporting on their Credit Bureau.
The request took too long.
Some business loans that are eventually approved do not close because the processing time was too long. Customers will tell us they need a Fast business loan that does not take long to get.These are the Top 12 Customer complaints with business loans.Contact us for programs to avoid these common business loan problems.
What type of alternative business loans can I get in Canada?
Canadian Business bank statement loans
Canadian companies can find alternative working capital loans available in the United States.
Another option is a business bank statement loan.
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. Online 1 Page short 30 second Application.
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.
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.
How to get a large business loan: How to steps, direction, and tips:
Estimated Cost: $0
Total Time: 1 Day
Supplies Needed: Financial statements if available, Business bank statements, and Tax returns for requests over $100,000.
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.
Step 2: Ready your Financials.
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 month in 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.
Step 3: Settle on top companies.
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
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.
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
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.
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.
Not getting straightforward information when applying for a business loan? Business owners are often told they are approved only to find out they are not. They are surprised they must pay significant fees at closing they were not told about upfront. Get ethical business loans through credible, honest and upfront information.
Contact us and our representatives will work with you as your business advocate, not a salesperson trying to sell you a product. Get full and thorough information from representatives with integrity to put you on the path that is best for your business, not best for their business. Complete the secure DocuSign 15 Second Application now.
Or call us at Tel: 1-919-771-4177, or Question?
You will be given a fair assessment of your businesses’ chances for approval, the cost and charges. The strengths of your profile will be discussed, along with any weakness or obstacles to approval. You will be receive help in the same manner if you hired a paid consulting company that is working for you, not someone else.
Loan programs include:
– Business Loans based on the Gross Sales of your business
– Business Lines of Credit
– Asset based loans, such as loans against Tractor Trailers, Construction equipment
and Accounts Receivables.
– Financing to obtain equipment
– We specialize in difficult to approve customers. Difficult to approved business loans
because of credit, time in business, low revenues.
Get a free full consulting session with your business advocate.
Our consultants work much differently than tell you which products are available and push you to apply. We will discuss what your situation is and what are you trying to accomplish. We will ask you basic facts about your business to determine all the realistic and attainable options. By doing this, you will only be talking about products that are the best match for your business. Then we will discuss their features and benefits. You can then decide which of the options will work best for your business. You will not be pushed into any product. With this method, you can get a business loan through a legitimate and impartial manner. An authentic, true, reliable and objective assessment will be made. An ethical business loan is what your business deserves.
You will get clear information upfront. You will get detailed information and what you are told and expecting. We build trust and trustworthiness by working as your business advocate. Get an honest business loan for your business.
For other broad loan options and business assistance, check with the SBA. Useful business information such as business plans and specialized programs is available.
Start your business on the right track today. Thank you for visiting our ethical business loan page.
Ethical business loan resources:
Assistance is available in many cities to help you with your business based on the Region you are in.
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:
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.
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.
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.
When a business has to payoff their loan to $0 once per year. When business loans are approved, lenders sometimes have this annual payout provision requirement.
In most cases, banks most often are the institutions that may require annual payout provisions on business loans. The loan typically has to be paid down to zero at least once per year. This is a major negative that borrowers should be very cautious about. This may seem like a minor aspect of the transaction, but could end up being very hard for the business to do. For business loans that do not require this, click below.
If a business loan annual payout provision is not met, what can the lender do? If the company does not pay out the loan one time per year, then does the lender have the right to call the loan? Will they raise the interest rate? Do they have the right to take some or all of the collateral? Can they liquidate any listed stock or bonds that were put up as collateral? If so, how likely is it the lender may do this? Will they do this fast or only if the long goes very far past due? These questions need to be asked. The borrower may have put up free and clear collateral such as real estate.
The borrower needs to consider the requirements if real estate is required for the transaction. If the transaction is for a larger amount, $100,000 or more, the borrower must consider their cash flow during the year. Even for businesses that have Gross Sales over $1,000,000 per year, coming up with $100,000 is challenging.
The business should consider their 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 they should have on their loan during the year.
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.
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 working with and negotiating with landlords.