Business Bank Statement Loans

Does your business know how to find a product to solve it’s cash flow issues?  Go to the features and benefits of our business bank statement loan program to quickly understand and learn about how easy it is to fix your temporary cash flow issues today and in the future.

With a business bank statement loan, your business can obtain fast working capital based on the cash flow of the business.   Your business can then use the capital for any purpose, such as expansion, advertising, inventory, adding employees, any reason.    |

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Business Bank Statement Loans

Businesses have long desired to be able to obtain financing without having the collateral, a high credit score and financial statements that reflect steady or increasing gross and net income that traditional sources demand.    Now this financing is available.   With business bank statement loans, businesses can obtain $5,000 to $250,000 usually within 5 business days by providing only their most recent 6 months business bank account statements.   In addition, businesses need only be in business for 9 months and credit scores as low as 500 and lower are approved.

Features of the business bank statement loans include:
– Flexible approval requirements, with  scores of 500 and below accepted.
– Only 3 months in business minimum requirement
– Total time to funding as little as 3 business days
– Qualify using only the most recent 3 months business checking account statements.
– Just a 1 page application
– Difficult deals done routinely.
– Customers do not have to have collateral.  The approval is based on the business cash flow.

Customers consider and use this product like a traditional business line of credit.
This product can be used almost like a traditional business line of credit.   Funds are wired into the customer’s account.  The customer repays the line within 6 to 9 months and can reuse the line repeatedly.   Similar to a line of credit, once the balance that was drawn is 60% paid down, another draw down can be taken even before the line is fully paid down.

If a business requests $100,000 with a repayment term of 48 months, even if they receive a lower approval amount with this line of credit style product, they will be able to get more total funding for the same term than with the 48 month product.  The credit style product is typically for 6 to 12 months and can be renewed at the end of the term.  If the customer is approved for $50,000 for this product and renews every 6 months, they will have received $400,000 over a 48 month period.   If the term is 12 months, they will receive $200,000 over the 48 month term, more than twice what they receive with the traditional loan product.

Required to qualify or pre-qualify –
– Signed and dated application from 50% of ownership
– Last 3 months complete business bank statements from main business operating
account.
– For amounts over $150,000:  The most recent 6 months business bank statements
and first page of the most recent business tax return.

Required for Loan Contracts:
– Valid and clear driver’s license.
– Voided business check for approved account.
– Valid E-Mail address for owners.
– Federal Tax ID number, or TIN. 

Other business bank statement loan customer benefits:
– New loans offered 60 days after closing first loan.
– Renewals and renewal options start at 40% pay down of balance.
– No standard site inspection.
– Tax Liens < $175,000 can be accepted.
– Bankruptcies > 1 Year O.K.
– Only 50% ownership required in many cases.

January 18th, 2016, Sacramento, CA, for immediate release.   Central Valley Excavation closes $250,000 business bank statement loan.   President Maurice Stanton announced, “This line will be used to complete expansion into Southern California.   We will add Equipment and inventory.   Central Valley Excavation will expand further into public and private underground water work.   With this expansion, we anticipate increasing sales 25% in 2016, and 75% by the end of 2017.   We expect to hire more employees during that period.   We look forward to continuing to work with Smallbusinessloansdepot.com to expand our financing options.”

October 13, 2015, Newport News, VA.   Smith Construction establishes $150,000 business bank statement line.   CEO Earl Blanton announced at a company meeting, “this line will allow Smith Construction to expand it’s market presence in Virginia.   We will use this financing to bid on new contracts in North Carolina and increase foundation work for commercial customers.  Additional employees will be hired.   With this expansion, we expect revenues to increase by 25% to 50% in the next 12 months and the same or more in the following year.   We we will be an industry leader in Construction on the Atlantic coast in Virginia.

07242014 – Fort Worth Fine Homes renews business bank statement financing line of credit.  President Brad Michaels released a statement: “This renewal to our line of credit with SmallBusinessLoansdepot.com will allow Fort Worth Fine Homes to become the leader in fine home construction in the Ft. Worth area and position itself as a top home builder in the Dallas area.”   Additionally, the line of credit was increased as well as renewed.  Fort Worth Fine Homes is a leader in the construction of fine homes in the Ft. Worth area, specializing in homes of $1,000,000 to $5,000,000.

Most frequently asked Questions:

Question:  Since the repayment is daily, how will I know if I can handle it?
Answer: Since the approval amounts are based on the cash flow, several factors
are considered as part of the approval, including the average daily balance and the consistency of the cash flow.   Based on these factors and an analysis of your cash flow, only an amount your business can handle is approved.

Question:  We have three partners in the business and we are each 33.33% owners.  Do all three of us need to apply and sign the closing paperwork, or can it be just one of us?   Can we get approved just in the business name with none of the owners signing?
Answer: For this loan, at least 51% of the ownership has to apply.  In your case, 2 of the 3 owners would need to apply.  This product is not approved just in the name of the Corporation.   The owners are on the application and then sign on the closing paperwork.

– Question: Can we qualify?  Answer: If your business has sales, it can qualify.  The higher the sales, the more your business can qualify for.   In general, the business should have at least $10,000 to $15,000 in deposits per month and making at least 5 deposits per month.  The higher the average daily balance is, the higher an approval will be for.  A business that deposits $100,000 per month into the account and keeps an average daily balance of $50,000 will qualify for significantly more than a business that deposits $100,000 per month but only has an average daily balance of $5,000.

Question: We have had some slow business credit reporting recently due some of our clients that have paid us late.   How closely is the business credit looked at?
Answer:  The business credit is looked at, but it is only a small part of what is looked at
that is considered.   The business credit score can be somewhat low and it will not affect
the decision or approval significantly in most cases.   The business credit has to be significantly deteriorated in order for it to have a significant effect on the decision, or even turn what would be an approval into a decline.

– Question: How fast can we obtain the funding?  Answer:  In most cases, funding can be obtained within 7  business days, in many cases, as fast as 3 business days.

– Question: Can we use the line again after it is paid down?  Answer: Yes, your business can use the business bank statement loan over and over, just like a line of credit. In fact, once the line is paid down 60%, your business can draw the remaining credit line, and use it again for its working capital needs.

– Question: How likely can we qualify for larger line sizes later?  Answer: Very likely.  In most cases, line size limits are increase significantly just based on repayment.   If your business has increased cash flow during the term of the repayment, line size increases can be dramatic, as much as 100% or more.

– Question: What is the term of the financing?  Answer: Terms vary, and in most cases are 2, 3, 6, 9, 12, and 18 months.

Recent Customer Example

CNA Transportation, a trucking company in Charlotte, North Carolina needed $50,000 working capital to expand.   They provided their most recent 3 months business checking account statements and a simple one page application.    They were approved for a starter line of $10,000.    The documents were E-Mailed to CNA.   The owner, Clovis had a few basic questions that were answered.    He faxed back the completed documents back in.  The landlord reference was called to confirm the landlord.  A brief verbal confirmation call was made and the customer confirmed the transaction.   Funds were wired into the customer’s account within 24 hours.

Thank you for visiting our Business Bank Statement Loan resource page!  For more info
go to sba.gov for resources.

For industry articles, go to our blog page.

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