UNSECURED BUSINESS LOANS
- 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 non-liquid 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.