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Declined For Not Enough Deposits? Less Than 5 Per Month OK!

Has your business been declined for a loan for not making enough deposits into your checking account every month?

Get approved and choose one of several  small business loans for your business that do not require a lot of deposits per month.   Apply below and get approved today.

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How to get approved for a cash advance with less than 5 deposits per month.

Contact us and we will put your business into the approval program that can accept less than 5 deposits per month.   Only have 1 or 2 deposits per month? We have programs waiting for your business now that can you approved fast.   Contact us above!

FAQ on being declined for a business loan for not having enough deposits

How many deposits does our business have to make each month to qualify?

5 deposits or more per month are usually required for a merchant cash advance. Some advance companies require as many as 10 or more. They must be real business revenue from customer sales and not transfers between accounts.

Can our business qualify with only 2 or 3 deposits per month?

Some lenders consider a low number of credits per month into a business account as higher risk because the business has fewer customers that it makes money from. Losing one customer will cut revenues and their ability to repay a loan much more than a business with many customers.

Why were we declined for not enough business deposits when we had more than 5 per month?

Deposits that are not from the sales of the business may not have qualified as revenue. Examples are transfers from other accounts, loan proceeds, very small deposits compared to others, and rebates.

Businesses have used cash flow loans to a great extent in recent years to finance their businesses.    The business account has low recent sales in one of the most recent months.

Our Small Business Development Center assists in getting past these problems to help business owners get a fast and easy business loan.

Other options

Make more deposits immediately during the rest of the month and apply at the start of the next month.   A deposit to a business checking account statement is often from several customers.   Retailers usually have several checks and cash from several customers, go to the bank and make 1 deposit.    Instead of 1 large deposit, break the deposit into several smaller deposits over the course of 2 or 3 days.

Talk to the Merchant Cash Advance companies and ACH business loan lenders directly about being declined and ask them how you can get your business approved.   As your business grows, it will add more customers.  Having deposits from more customers will increase the number of deposits per month into your business account.   As a result, this will make your business a better risk from the lender’s point of view.   The number of customers a business has is an important part of looking at risk by lenders.
For example, restaurants have hundreds of customers per week.   As a result, they will show many deposits per month.   Restaurants that lose a few customers only lose a small percent of their customer base.   A business that has 4 large customers loses 25% of their customer base when they lose just 1 of their customers.

Possible solution:

If you know the deposits you make into your business checking account have multiple items, you can tell the Merchant Cash Advance company or ACH business loan company.
What are multiple items?
Multiple items means that the funds in the deposit are from more than 1 customer.    If the merchant cash advance company knows this, you can get a copy of the deposit from the bank.   The copy of the deposit will show the items deposited. If it is 5 items, you may get credit for 5 deposits instead of 1.     You may be able to get the MCA company to change the decline to an approval.   A number of ACH lenders and merchant cash advance companies are open to this.

If this does not work, ask how long you have to wait before they will consider you again.  Be clear on what they want to see the next time so you will not be declined again.

Get working capital through other loans

If the options above do not work or you cannot wait, your business can consider other types of business loans.   Which ones are best depend mostly on your company’s profile.    Choices include:
– Monthly Term loans up to 48 months based on Tax Returns
– Accounts Receivables Financing
– Business loans based based on Real Estate or Equipment Assets.
Business loans based on real estate, equipment or accounts receivables will usually not have this requirement.   Having collateral that covers the loan amount means that cash flow is not as critical.    The number of customers is also not important.

Unsecured loans depend heavily on cash flow and as a result, the cash flow of the business is scrutinized much more.    Businesses applying for unsecured loans should also have financial statements that show the business making money and having net income.   Many businesses do not show net income and this hurts their request and also causes declines.

The SBA small business administration also has excellent resources on alternative business loans

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Articles

Borrowers Should Request, Not Demand to Avoid Turndowns

Lenders frequently have customers that request favorable terms.   Banks and other lenders are not surprised when they encounter borrowers who request better terms or the best terms possible.   Borrowers should request, not demand better terms and rates.   They should also negotiate rather than demand certain rates and terms.

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If the borrower has trouble repaying the loan, it is better to negotiate restructured repayment.    Giving the lender an ultimatum and demanding they accept what you want to pay is often not effective.  Sometimes borrowers overstep their bounds and hurt their request by approaching lenders with a list of requirements or demands they feel they have to receive with their loan.  

This is a bad approach to take with lenders.   An applicant sometimes make the mistake of believing they are entitled to a loan and the terms they think they should get.

They often do this with the rate, closing costs and the number of months the loan can be approved for.    This happens more often with personal loans, but it also happens with business loan requests.

Applicants will often tell the lender in advance that they will not pay above a certain rate, or will even tell the lender the rate that they want to pay.   They will also tell the lender that they do not want to pay any closing costs, even though 1 or 2 payments at closing may be a normal requirement.   Applicants may also tell the lender the term they want, 48 or 60 months.  In some cases the maximum term the lender will consider is 36 months.

When borrowers do this, they may be hurting their chances of even getting the loan approved.   If a borrower tells the lender they will only pay a 7% maximum interest rate on a business loan, and the typical rate is 9%, the lender may not be motivated to offer the loan.  The lender may do nothing at that point and the borrower will have to decide if they want to go back on their demand.

The same thing applies to closing costs and terms.  If  1 or 2 payments at closing are normal and the lender does not concede on this, the borrower may be stuck.  Borrowers need to be cautious about how they present their requests.  If they do not want to pay 1 or 2 payments at closing, the lender may take a closer look to see if the business loan applicant has a cash flow problem.

Borrowers with good credit sometimes incorrectly believe their profile is the best the lender sees.   Often, they believe their credit is stronger than it really is. Applicants that make demands and are difficult during the loan process tend to be the same during the entire borrowing relationship. A loan applicant should make their case, but give the lender what is being requested.

Due to the reasons cited above, businesses that need money will get the best results by negotiating with lenders rather than making demands.

Categories
Asset Based Loan

Grants: Only for Non Profit Companies

Recently, some regular for profit companies have inquired how they can get free loan grants.    In general, Grants are not for profit companies, unless they fall into certain limited specific categories which sometimes change. For excellent alternatives to Grants, click below.

Click Complete Online App now.  Click on “Paper Clip” attachment at bottom right and attach the last 3 months bank statements, or just complete Application.
Or, On Cell Phone, just tap either Tel # link, 1-919-771-4177, then Press Dial on your phone.   You can Tap / Click  Contact-Me, complete and we will contact you.

The public often believes that grants are available from the Government and do not have to be paid back.   Grants are given mostly to non profit businesses.  There are some exceptions that change over time.  States may issue grants business in certain industries.  For example, certain technical or scientific industries that government wants help from private industry in.

They sometimes states will issue Grants to certain businesses in the farming sector as States wish to promote the continued health of farming in their States.   There are also instances in which certain minority owned businesses may be provided Grants.   In general, For profit businesses do not receive Grants.   Federal and State governments do not wish to provide money from revenues to businesses that are engaged in for profit endeavors.

Many new businesses that need a start up business loan look for help. They contact companies who advertise they can get grants for private companies.  Many of these advertisements do not say that grants are mostly for non profit businesses.    There are also many companies that advertise books as well as online books that are sold on how to obtain Grants.   These fall into the same category in that these books are being sold on how to get something that in the vast majority of cases, does not exist.

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News

Why Businesses get hurt if debt ceiling isn’t raised

Many business owners are conservative.   They obey the laws, watch their spending, and are cautious.   Many will say that the Government should not increase the debt ceiling knowing that the Government will be taking on more new debt.    It is a good idea for the Government not to take on new debt, but not this way.

Currently, the Government spends over 40% more than it takes into it’s coffers in revenues.   Economists have argued in past years,  by what percentage the Government can cut it’s spending in one year without hurting the economy, and many Economists felt that a cut of just 4% per year would slow down the economy short term, even if long term it benefits the country.

If the debt ceiling is not raised, or raised within one or two days after the deadline, the stock market will take a major dive.  Individuals will pull back on spending until they are comfortable with what will happen.  Large Corporations will follow suit and put on hold and delay any hiring or expansion plans.    Interest will continue to be paid or the country would suffer a true technical default.   World markets will truly be aghast and dive mostly due to the reckless self destruction.   Moody’s and Standard and Poors may impose another credit downgrade, further aggravating markets.

The Government will truly be forced to choose who receives Government money and who does not.   Watch in amusement as some of the same Congressmen and Senators who voted to not raise the debt ceiling suddenly demand that the flow of money continue for their districts.   Unemployment benefits, assistance for farming, highway money, and Government contractors will undoubtedly be among the first victims of a massive spending cut.   Companies that provide products for the military will also take massive cuts because Congress will make every effort to pay the soldiers.   If the department of education takes cuts this will cut funding to colleges and schools.   Other departments such as the Commerce department, the department of labor, and the State Department would all very likely take cuts.

While many people feel this would be good in principle, the state department includes funds for Embassies and Consulates, including the defense of those organizations.  The commerce department includes food safety and inspection.   Funding for Ports and border security have to be considered.    If the Department of Homeland security is cut, then many functions now happening would slow down.   Many of these employees would be temporarily cut.

The media effect would be tremendous.   Media outlets will interview unemployed and furloughed employees who will vent vicious frustrations.    Public opinion polls will reflect the worst ratings for Congress ever in it’s history.    Such a situation will be guaranteed not to be long term.    Congress will then quickly raise the debt ceiling.   Renewed talks of whether tax increases are justified in order to pay for desired services will begin.    People will realize the value of services lost, previously taken for granted.    Once it is accepted that the national debt must be address long term, their new found dependence of services will be weighed versus revenue increases and future proposed spending cuts.

Categories
Asset Based Loan

Would Social Security not get paid post fiscal cliff?

Would Social Security recipients not get paid in a post fiscal cliff world?   Not likely, thought prospect of it is still in the cards, even if the Government does not want to go there.

The Government would almost certainly pay interest in it’s debt, otherwise the credit rating would nosedive in a hurry and future borrowing would skyrocket.    The Government knows that Seniors would be in a massive panic if their checks were interrupted.   It would be a public relations disaster.   Many seniors have no other sources of income and are not able to seek other employment.

Would Social Security not get paid post fiscal cliff Resources:

Categories
Asset Based Loan

Who would not get paid if we pass the fiscal cliff?

The so called fiscal cliff is approaching, again.   So what question should, or would the average citizen be most interested in?    Maybe the first question would be, who will and won’t get paid?

There will be a lot of talk about how every one will be taken care of, but the harsh reality is that someone won’t get paid.   It will be a sure thing that that someone, of which there would be many, won’t be happy.  That may end up being the understatement of the year.  If this happens, in the end, all of the current politicians will end up being the big losers and public anger will be targeted in their direction.

As far as who won’t get paid?   Probably defense contractors will be very high on the list.   They are paid great sums of money but it is not a payment direct to the people.   It won’t make much difference though as it won’t be long before their employees aren’t paid.

Highway departments and maybe some unemployment recipients would be next on the target list.   Basically, the Government would want to keep paying interest on it’s debt but soon after, many citizens would stop receiving money.