Bank Statement Requirements

At FundLocal, part of our fast and efficient funding process includes reviewing your recent business bank statements. These statements allow us to assess your business’s cash flow and financial health, ensuring you qualify for the funding amount you need. Depending on the state your business operates in, the number of months of bank statements required may vary. Here’s a breakdown of the bank statement requirements for businesses in California (CA), New York (NY), Utah (UT), and other states.

For most businesses applying for funding through FundLocal, we require recent business bank statements to verify your business's financial activity. These statements help us evaluate your cash flow, average daily balances, and overall financial stability. Here’s what we typically look for:

• Revenue consistency: Regular deposits that demonstrate a stable cash flow.

• Business expenses: Outflows that show how your business manages day-to-day operational costs.

• Daily balances: A snapshot of your cash reserves, indicating your ability to manage funds and meet repayment obligations.

For businesses operating in most states, FundLocal requires the most recent 3 months of business bank statements. These statements should clearly reflect your revenue, expenses, and daily balances over the last 3 months, providing us with an accurate picture of your financial health.

• Requirement: 3 months of business bank statements

• Why It's Important: A 3-month window gives us enough data to evaluate your business’s financial stability and cash flow trends. This allows us to make a well-informed decision regarding your eligibility for funding.

Businesses located in California (CA), New York (NY), and Utah (UT) have slightly different requirements due to state-specific regulations or underwriting practices. If your business operates in one of these states, you will be required to submit an additional month of bank statements.

• Requirement: 4 months of business bank statements

• Why It's Different: In states like California, New York, and Utah, regulatory practices or additional financial assessments may require a longer view of your business’s cash flow. This extra month of statements helps ensure that we have a more comprehensive understanding of your financial activity, which can be especially helpful if your business has seasonal fluctuations or irregular revenue patterns.

Your business bank statements provide key insights into the financial health of your company. They allow us to assess:

• Cash flow management: Ensuring your business generates enough revenue to cover its operational expenses and the loan repayments.

• Revenue patterns: Whether your revenue is steady, increasing, or subject to seasonal fluctuations.

• Daily balance health: An indicator of how your business manages its funds, including whether you maintain healthy cash reserves or experience frequent low balances.

These factors play an important role in determining both your eligibility for funding and the specific loan or credit terms we can offer.

To ensure your application moves forward quickly, it’s important to provide complete and clear bank statements. Here’s what your statements should include:

• Account holder information: Ensure that the business name matches the name on the bank account.

• Transaction history: A detailed record of all incoming and outgoing transactions, including deposits, payments, and withdrawals.

• Ending balance: The final balance at the end of each statement period, showing the cash reserves your business holds.

• Daily balance details: Information on daily balances throughout the statement period to help assess cash flow consistency.

Make sure that your bank statements are in a readable format (PDF is preferred) and cover the full period required (either 3 or 4 months, depending on your location).

Submitting your bank statements is easy and secure. During the application process, you’ll be prompted to upload your statements via our online portal. Simply follow the instructions to upload the required documents, ensuring that they meet the following criteria:

• Format: PDF is preferred, but other common file formats may be accepted.

• Clarity: The statements must be clear and legible, with no missing or incomplete pages.

• Complete coverage: Ensure that you provide full monthly statements, not partial or edited versions.

If you have any trouble uploading your statements, our support team is available to assist.

The additional month of bank statements required for businesses in California (CA), New York (NY), and Utah (UT) helps us get a more comprehensive view of your financial trends. Here’s why:

• State regulations: Certain states have additional regulatory requirements, which means we need a longer view of your financial activity to comply with local laws and ensure accurate underwriting.

• Deeper cash flow insight: An extra month of statements allows us to assess any seasonal fluctuations or trends that might not be apparent in just 3 months of data.

• More personalized funding options: With more detailed financial information, we can offer better-tailored funding solutions that meet your specific business needs.

Once you’ve submitted your bank statements, our team will review them as part of your application. This process typically takes a few hours to the next business day. We’ll be evaluating:

• Revenue consistency: To ensure your business has a reliable income stream to support loan repayments.

• Daily balances: To gauge your business’s financial health and liquidity.

• Transaction patterns: To assess your operational cash flow and whether your business is managing expenses responsibly.

After this review, you’ll receive an approval decision, and if approved, we’ll finalize the funding terms with you.

At FundLocal, we understand that time is critical for small business owners. That’s why we’ve designed our application process to be as simple and transparent as possible. Submitting your bank statements is a key part of that process, and we’re here to help you every step of the way. Whether your business is located in California, New York, Utah, or any other state, we’ll work with you to ensure you have the right documents in place for a smooth and speedy application process.

If you have any questions or need assistance with submitting your bank statements, feel free to reach out to our support team for help, or explore more topics in our knowledge base to learn about the next steps in the funding process.