UNSECURED BUSINESS LOANS
UNSECURED BUSINESS LOANS Merchant requirements:
● 2 YEARS IN BUSINESS, unless there is experience in that particular business and have bought into it. (i.e. a restaurant manager for 5 years just purchased a restaurant) . 6 months of bank statements are still required to review cash flow.
● It is preferred that the business takes credit cards or uses PayPal. If the business doesn't take credit cards, and everything else looks ok, there can still be a case by case exception.
● Tax Liens & Judgments are OK. Need to be in a repayment plan or be paid off with the loan. ● 15+ deposits per month into a business checking account. (no savings and no nonliquid accounts.) ● $10k in deposits per month. ● Average daily balance must be at least $3k per month . A rule of thumb is to take the average
daily balance and multiply it by 4. That will give you an estimate of the loan amount you can qualify for.
● Allowable NSF’s are: 5 for 30 days, 10 for 3 months and no more than 20 for 6 months. Unless there is a good explanation. (there can still be exceptions also.)
● Tax returns reviewed just for ownership & to verify the tax id number. ● Proof of 80% ownership is required.
Scoring an Equifax model is used. Minimum Vantage score is 627– Approximately down to a 580 Beacon
score. If the applicant does not pass the scoring model, then this financing can't be offered for another 30
days when the credit can be repulled.
Documentation/Items needed: ● The application
● Most recent 6 months of business bank statements
● Most recent 2 years of business tax returns (not used for income)
● Most recent 1 month merchant processing statement
● Pictures of the business location
● Proof of at least 80% ownership of the business (this can be shown on tax returns)
● Articles of Organization/Incorporation for the company
● Secretary of State proof of good standing