Bank Statement Loan

Qualifying for a business loan in today’s economy is difficult and timely process to say the least. With a traditional bank loan some of the most common hurdles facing business owners today include personal credit problems, lack of collateral, and restrictions related to use of funds.

As an alternative, a business cash advance has become a popular option since qualifying is based on a company’s monthly credit card sales. However, even this option has its drawbacks especially for businesses that do not process an adequate amount of credit card transactions.

As a result, the use of personal credit cards, personal loans, and borrowing from friends and family for business expenses have become a common practice among small business owners.

It’s a practice that puts one’s personal credit and corporation at risk since co-mingling personal and company funds can jeopardize the protection of the corporate veil.

But what if you have steady cash flow coming into your business bank account each month?

Is there a way for your business to obtain financing without having to rely on personal credit or personal assets?

The good news is there is a program that enables you to use the strength of your business cash flow to qualify for a loan. It’s called the bank statement loan and it’s based on your company’s bank deposits not your personal credit or personal assets.

It bridges the gap between traditional bank loans and factoring products such as merchant cash advances. There is no costly application, complicated paperwork, closing costs, collateral, or personal guarantees required. All you need to do is complete a simple application, provide bank statements, a driver’s license, and a copy of your lease.

There are two types of bank statement loan programs that we currently have available each tailored to the age of your business. Here is a review of each program and its requirements:

Express Bank Statement Loan
Funding for under $25,000
Term: 6 months

Requirements:
– 1 year in business
– 500 minimum FICO score
– 5 deposits/monthly
– Need to have a business credit rating
– Minimum bank balance is $2,000

Requirements to fund:
– Completed application
– 1 month bank statement
– Copy of Drivers License
– 1st page of lease

Standard Bank Statement Loan
Funding for over $25,000
Term: 6 months/9 months/12 months

Requirements:
– Generally approve 2-4 times bank balance or 4-6% annual revenue
– 600+ FICO for 1-2 years in business
– 500+ FICO for 2+ years in business
– 15+ deposits/monthly
– More than $3,000 average daily balance
– More than $300k annual revenue

Requirements to fund:
– Completed application
– 3 month bank statements
– 3 month merchant account statements (if applicable)
– Copy of Drivers License
– 1st page of lease

You can qualify for funding within 48 hours if all the required documents are completed. Once you qualify you will get the rates and terms for your review. The way you pay back the loan is via ACH from your business bank account at a fixed amount.

To apply download our bank statement loan application today.

If you’ve been shut out from traditional loans due to low credit scores, lack of collateral, or other reasons; consider putting the strength of your company’s bank deposits to work for you. With a bank statement loan you can build your company’s bank and business creditworthiness.

Looking for business credit and other alternative funding programs? Become a member of my Business Credit Insiders Circle and gain access to a proven step-by-step business credit building system. A system that provides you access to vendor lines of credit, fleet cards, business credit cards with and without a PG, funding sources and lenders that report to all the major business credit bureaus. Submit your name and email below for details and receive a free business credit building audio seminar ($597 value) =>

About the author

Marco Carbajo is a business credit expert, author, speaker, and founder of the Business Credit Insiders Circle. He is a business credit blogger for AllBusiness, a subsidiary of Dun and Bradstreet and author of “Eight Steps to Ultimate Business Credit” and “How to Build Business Credit with No Personal Guarantee.” His articles and blogs have also been featured in the SBA Community, American Express Small Business, Business Week, The Washington Post, The San Francisco Tribune, Scotsman Guide, Alltop, Entrepreneur Connect, and Active Rain.