Sending your Business Bank Statements may seem like a weird request and it's not something that you may feel comfortable with.
You get a call in the middle of the day from a stranger and they tell you to fill out this application and submit 3 months of your business bank statements to this email and you can get money in 24 hours. Sounds great but um... who are you?
We're going to be upfront with you Business Owner. When we first started in this industry a decade ago, Business Owners had to print out and fax over their bank statements to underwriting when they applied. Seldom did we get digital statements that one can download from their online bank account. We did the manual work of flipping pages around and rescanning everything into a submission package. We have to confess that back then when we learned how Business Owners applied and who, how, and the ways they submitted documents shocked us. The passing of personal information and documents scare a lot of people away from applying and we want to point out the elephant in the room.
We live in a world where everyone is afraid of having their identification stolen but all day long the alternative finance industry passes your sensitive information to upwards of 10+ Companies at a time! It's called shopping. It sounds harmless but what's being shopped are your bank statements.
So is it okay for you to submit your business bank statements for funding?
It is a requirement for basic underwriting so YES.
A Standard Financing Application or Submission INCLUDES at least 3 Months of Business Bank Statements.
2.If the email requesting your bank statement is a @gmail or @yahoo... NO.
3. If you are promised a Line of Credit... NO.
4. If you are not comfortable or feel rushed... NO.
5. If you need more than $100,000 and are only asked for 3 months... NO (you obviously need more and you'll waste so much time)
During closing - You may be asked to provide a Bank Verification. This can be done by a third party link sent to directly from the Financing Company or can be done over the phone as a "bank login" verification. This is when the closing underwriter reviews your bank information with you on the phone to make sure the balance is positive, the correct deposit amount is met, and there is no additional funding that was taken prior.
Remember, Brokers do not have any fiduciary responsibility and the Financing Company can check your bank at anytime. This is something that should be communicated to you or requested in order for underwriting to check the health of your business.