Several programs are available to get approved for a fast and easy business loan with no tax returns. Companies often do not or cannot provide tax returns for loans. Programs are available to get a loan without returns hassle free.
How to get a small business loan with no tax returns: How to steps, direction, and tips:
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.
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.
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
Step 4: Submit your company’s application
Go with the most qualifying program for your business without tax returns.
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.
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
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.
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.
Medical practices have been considered desirable by traditional funding sources for a long period of time due to the professional nature of the business and the low default rate. Other factors for this include a consistent accounts receivable balance due to a high percentage of the patients having insurance.
However, this high percentage of insured patients applies primarily to traditional medical practices. Dental practices and Chiropractor practices have a far lower level of insured patients than medical practices. As a result, when Dental practices and Chiropractor practices apply for financing at traditional and some non traditional sources, the lack of patient insurance used for payment is considered in the loan request.
When a Medical practice applies for financing, their accounts receivables may total in the hundreds of thousands of dollars. Most Dental and Chiropractor practices will have Accounts receivables under $100,000 with most being below $50,000. As a result, traditional financiers are not able to use and assign the practice’s accounts receivables as collateral for financing, which makes their asset position somewhat weaker in the financing request.
The root cause of this is that most individuals have health insurance but not as many have dental insurance. Those that have dental insurance often elect the insurance through one of their workplace programs. A very limited number of individuals have insurance that will cover treatment procedures at a Chiropractor. However, there are more insurance policies available to cover dental work than chiropractor work.
As a result, when practices seek financing, such as a dental practice loan, they should be aware that they have one less significant asset available for the financing than a traditional medical practice. One strategy that can make up for this is to work with their Accountant to make sure their financial statements are reported in an way that makes their bottom line more profitable. There are some accounting options that businesses and their accountants can choose from that will more likely allow a practice to show a positive net income which will closely considered as part of the credit evaluation whether the practice can handle the additional debt service.