Whether you have been in business for many years or are just starting out, AmOne can help you get the financing you need.
An unsecured business loan doesn't require you to secure the loan against any asset, hard, tangible, or otherwise.
If your business isn't able to get a bank loan, a merchant cash advance can help if you have a cash flow problem.
This alternative funding source is also known as revenue-based financing as it's based off of your sales volume.
If you owe multiple creditors and are struggling with payments, a small business debt consolidation loan may be right for you.
Learn more about the benefits of leasing your equipment versus taking out a loan to purchase your equipment.
If you own your own equipment, you may be able to free up cash by selling it and then leasing it.
What Is Bank Statement Financing?
Do you need working capital for your business or are you looking for a way to boost your business cash flow? Depending on how you accept payments from your customers, your options will vary. For those business owners who operate a cash only business or who accept checks from their customers, it can feel like your financing options are limited. There's still a way for you to get the capital your business needs. If your business does not accept credit cards, or if you've already been turned down by a bank for a traditional unsecured business loan, bank statement financing (BSF) can still allow you to obtain the financing you're looking for.
Bank statement financing programs (also referred to as automated clearing house or ACH financing) look at the total amounts of deposits you receive in your business checking account. IF a business owner has more than one business checking account, they can use multiple accounts to qualify.
A good rule of thumb is the higher the balances, the higher the approval amount from the bank statement financing company. Typically, the requirements for this type of loan are much like a merchant cash advance. The only difference is instead of the loan being based off your credit card statements, the approval for this type of loan is based on three to six months of business bank statements.
One of the benefits of bank statement financing over a merchant cash advance is that generally a bank statement loan is reported to the credit agencies, helping you to build your credit score, while a merchant cash advance isn't reported.
Additional documentation that may be required are tax returns and, depending on the company providing the loan, a lease agreement. The terms on this type of loan can range between three to 18 months depending on the time in business and the average daily balance deposited into the business checking account.
What Are The Requirements for a Bank Statement Loan?
Getting a loan from a bank typically requires that you meet complicated criteria like having a certain debt service coverage ratio (this is the cash flow you have available to pay your debt, including the interest rate) or liquidity ratio (this is used to determine if your business is able to pay off its debts). Bank statement financing can give you access to the cash flow you need quickly simply based on the strength of your business. The general requirements include:
- You need to be in business for a year to qualify for most programs, although certain lenders will accept six months in business
- FICO® scores above 500 are usually considered
- You must have an average daily balance in your business checking account of $1,500 or more
- You must be profitable, showing that the total amount deposited is greater than the total amount withdrawn in a given month
- You must have very few non-sufficient funds (NSF) on your business account every month
- No collateral is required
Is Bank Statement Financing Is Right For Your Business?
If you're not sure whether or not bank statement financing is the right solution for your business, AmOne is here to help. You can always call us to get the assistance you need free of charge and of no obligation to you. Our financial search specialists will work with you to determine the type of financing your business needs. We will match you with a highly rated provider based on the prior experiences and reviews from business owners like yourself.
Either you can complete a simple form to get started or you can call us toll-free at 1-800-781-5187. We'll be happy to explain the options available for your business, and can also match you with any other potential business loan solutions.
Either you can complete our simple bank statement financing form to get or you can call us toll-free at 1-800-781-5187. Our financial search specialists are happy to explain the options available for your business. Our free service can also match you with other potential business solutions.