October is a very interesting month in the business world. It signifies the beginning of…
Deny The Bank Before The Bank Denies You!
Here, at Synergy Merchants, we hear it all the time. Canadian business owners come to us explaining that their local banks (of which they’ve been customers for decades) have denied their loan applications and they can’t understand why. The truth is that entrepreneurs all over the country have their bank loan applications denied more often than you think. And the reasons are many. Does any of the following apply to you?
You weren’t all that well prepared.
Did you enter your meeting with your loan officer with a detailed business plan? Did you come equipped with your financial statements? Did you state your projections and expected returns on investment? Did you present your credit reports, tax returns and bank statements? If not, your loan officer likely saw you as someone who wasn’t very well prepared for the entire bank loan process. There’s more work involved than you may have assumed.
Perhaps, you have no collateral.
What can the bank rely on to ensure they don’t lose if you find yourself in a position to be unable to repay your loan? It’s called collateral. And unless you have something of worth – your home or company vehicle, for example – then you don’t have any collateral. Not having collateral is often a top reason why banks deny business loan applications. Banks need to make sure they’ll be paid back somehow, and your physical property is their assurance.
Maybe you have bad credit.
Do you have a history of being unable to pay back the money you borrow? Do you have outstanding credit card debt? Is there a history of late payments on your credit report? Have you ever reported a bankruptcy? A “yes” answer to any of the above can negatively impact your credit score. And bad credit is yet another top reason that bank loans are denied.
You might not be making enough cash.
How is your cash flow situation? Did you present to your loan officer how much money you regularly generate at your place of business? Have you ever had an issue making your rent payments, paying your employees or affording your inventory? Not having enough cash in your bank account can indicate to a loan officer that you don’t handle your money very well. This becomes another reason to receive a big fat “NO” from your bank.
At Synergy Merchants, we give Canadian business owners the ability to deny their banks before their banks deny them. Our unique merchant cash advance program offers merchants opportunities to secure much-needed funding for their businesses without having to worry about detailed business plans, collateral, credit histories or cash flow.
A merchant cash advance is not a loan.
It’s an advance on a merchant’s future credit card and debit card sales. In other words, we purchase some of your future earnings for a discount. By advancing you money that you’re bound to make (based on projections forecast by your previous monthly statements), you can do whatever it is you wish to grow your business.
Unlike a loan, a merchant cash advance is paid back automatically through a small percentage of your future credit card and debit card transactions. You have no monthly payments to remember! For more information about our unique merchant cash advance program, please don’t hesitate to call Synergy Merchants at 1-877-718-2026 or email us at info@synergymerchants.com.