Eligibility pre check by product

How do I use the table?

Match the owner's answers to the four scoping questions against the rows. If a business clears a row's bars, that product is worth including in matching. If it misses one bar by a little, matching may still find a lender. If it misses two or more, say plainly that the product is unlikely this quarter and what would change that.

What gets a file declined regardless of product?

• More than 3 NSFs or 5 negative balance days in the last 90 days.
• Undisclosed existing advances or loans found on the statements.
• Open tax liens or judgments without a payment plan.
• Declining revenue of 30% or more year over year with no explanation.
• Industries some lenders exclude: adult, gambling, firearms, certain financial services. Matching handles exclusions automatically.
• A personal guarantor with a recent bankruptcy (most lenders want 2 to 4 years clear).

Read why loans get denied for the fixes.

What improves odds quickly?

Keeping the operating account balance positive for 60 to 90 days, paying down or paying off an existing advance before applying, filing the last tax return, and preparing a one page explanation for any unusual deposit or dip. For owners under one year in business, equipment financing and factoring are the usual doors in, because the collateral or the invoices carry the risk.

How does Canada differ?

There is no SBA. The Canada Small Business Financing Program (CSBFP) through banks and BDC loans fill a similar role, with their own bars. SR&ED financing lends against the research tax credit and depends on the claim, not on credit. Merchant cash advance, factoring, equipment and term lenders work much like their US equivalents.