• HOME
    • Business Credit
  • About Marco Carbajo
  • Contact Us
  • Archives
  • Resources
    • Business Calculators
      • Business Credit Card Payoff Calculator
      • Business Loan Calculator
      • Business Lease Calculator
  • Business Credit Cards
  • Afffiliate Program
  • Member Login

Business Credit

Building Business Credit for Small Business

  • Business Credit
    • Consumer Credit
  • Funding
  • Business Credit Programs
  • Business Credit Building System
  • Business Funding Engine
  • Real Estate Funding
You are here: Home / Business Credit / How Cash Flow Based Lending Helps Unbankable Business Owners

How Cash Flow Based Lending Helps Unbankable Business Owners

September 26, 2013 By Marco Carbajo

Cash Flow Based Lending

Does your business have steady cash flow?

Have you been unsuccessful obtaining a business loan from your bank because of low personal credit scores? cash flow based lending

There’s nothing more frustrating for a business owner that has a business with consistent cash flow but can’t get financing because of personal credit issues.

If this describes your situation then you’ve come to the right place. The good news is cash flow based lending is ideally suited for the unbankable business owner.

The loan itself is based on the cash flow of the business rather than the personal credit ratings of the owner and will not exceed 10% of the company’s annual gross sales.

So if your business has a total of $250k in annual gross sales then the loan amount you can obtain via cash flow based lending cannot exceed $25k.

The loan amounts in this type of program ranges from a minimum of $5k to $1.5 million per business. As far as the loan term goes it can be as little as 4 months to as long as 24 months depending on the financing product the business applies for.

Now to compare what it takes to qualify for a business loan let’s compare the two.

To qualify for a bank business loan they review personal credit reports, FICO® Scores, business and personal tax returns, financials, business credit reports, etc.

With cash flow based lending there are minimum requirements which include:

  • Minimum FICO® Score of 550
  • Annual gross sales must be greater than $100k
  • Minimum of 5 deposits per month in business checking

*New Product Update – Check out the New Business Line of Credit based Only on Bank Deposits


As you can see cash flow based lending has much more flexible requirements compared to your standard bank loan. With this type of loan, gross sales and deposits take a front and center role while FICO® Scores take more of a back seat.

There are also unique differences in repayment terms when you compare both types of loans. A standard bank loan has a single lump sum monthly payment due each and every month.

With cash flow based lending; also known as revenue based financing, payments are made in small increments via ACH from the company’s checking account on a daily basis except on Saturdays and Sundays.

Some of the most popular businesses that utilize cash flow based lending find it to be a fast, easy and convenient solution for getting the funding they need.

Unfortunately there are certain industry restrictions that prohibit certain types of businesses from obtaining this type of funding.

Ready to apply for cash flow based lending? Submit your information below and a funding specialist will contact you within 24 hours. Plus receive my FREE Business Credit Building seminar audio ($597 value) =>

To Your Success In Business and in Life!

Did This Blog Help You? If so, I would greatly appreciate if you like and shared this on Facebook.

About the author

Marco CarbajoMarco Carbajo is a business credit expert, author, speaker, and founder of the Business Credit Insiders Circle. He is a business credit blogger for Dun and Bradstreet Credibility Corp, the SBA.gov Community, About.com and All Business.com. His articles and blog; Business Credit Blogger.com,  have been featured in ‘Fox Small Business’,’American Express Small Business’, ‘Business Week’, ‘The Washington Post’, ‘The New York Times’, ‘The San Francisco Tribune’,‘Alltop’, and ‘Entrepreneur Connect’.

Image courtesy of FreeDigitalPhotos.net

Related Posts

  • Building Business Credit: OverviewBuilding Business Credit: Overview
  • 28. Building Business Credit: Banks Offering Secured Loans 28. Building Business Credit: Banks Offering Secured Loans
  • SBA Banks with Preferred Lender Status Part 1 SBA Banks with Preferred Lender Status Part 1
  • Apply for a Business Credit Card: How do Banks Evaluate Creditworthiness?Apply for a Business Credit Card: How do Banks Evaluate Creditworthiness?

Share this:

  • Twitter
  • Google
  • Facebook
  • LinkedIn
  • Pinterest

Filed Under: Business Credit Tagged With: cash flow based lending

  • Facebook
  • LinkedIn
  • RSS
  • Twitter
  • YouTube

Subscribe to our Newsletter

Join Over 52,000 Business Owners

business credit builder system

business funding engine

>
Build Your Dreams With Net 30 Terms
What's Your Credit Score?

Bank Line of Credit

Get Peace of Mind

CATEGORIES

  • Business Credit
  • Business Credit Videos
  • Consumer Credit
  • Funding
  • Help for Small Business

RECENT POSTS

  • Best Secured Business Credit Cards – Build Business Credit Easily
  • How to Get a Virtual Business Address and Phone Number

CONNECT WITH US

  • Facebook
  • LinkedIn
  • RSS
  • Twitter
  • YouTube

Copyright © 2023 Business Credit Blogger.com | All Rights Reserved | TOC | Privacy Policy | Disclosure | Sitemap | Contact Us