- Deposit Volume
Deposits should occur regularly throughout the month. Regular deposit volume indicates that a business has a reliable flow of incoming cash, which serves as assurance to lenders that their advance will be paid back.
Tax liens should have payment plans in place and you should be working towards rectifying delinquent tradelines. Personal FICO is taken into account, and business credit matters too. Keep your accounts current and make payments often.
- NSFs and Overdrafts
2 or 3 per month is understandable. More than 8 NSFs within the last three months is a red flag for most lenders. Keep an eye on your business account’s daily ending balances!
- The Nature of Your Expenditures
Keeping business separate from pleasure is crucial in conveying that you take your business seriously. Unfortunately, trips to Nordstrom, Taco Bell, and RedBox rentals don’t constitute responsible business expenditures, and don’t look too great on your business account’s transaction history.
- Your Prior Repayment History
If you’ve had a cash advance before, funders will examine your repayment history and make some inferences about the kind of client you might be. If you bounced payments, lowered payments, or—worse yet—stopped payments on a prior advance, chances are you won’t have much luck getting another advance.