Business owners that conduct there business thru personal accounts?
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  1. #1

    Business owners that conduct there business thru personal accounts?

    Hey,
    i came across 2 clients that run their business thru personal accounts.
    is there a home for that type of deal?


    thanks

  2. #2
    Try cfm, sometimes they don't catch those.. But they take forever to underwrite

  3. #3
    thanks Jcoles..
    sorry, not sure who cfm is. can you please specify?

    thanks in advance.

  4. #4
    Capital for merchants.
    Make sure they apply as a sole prop, and merchants first name as legal name.

  5. #5
    thanks for your quick response!

  6. #6
    Senior Member Reputation points: 1240
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    I have gotten deals like this funded in the past. Request for the merchant to open up a business checking account and base the approval amount and terms on the last 6 months of his or her personal statements that were being used for business purposes. Once the business bank account is open for a couple days and you can see that it is going to be made the primary business account then funding can occur.

  7. #7
    Veteran Reputation points: 159073 J.Celifarco's Avatar
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    Quote Originally Posted by Giants86 View Post
    Hey,
    i came across 2 clients that run their business thru personal accounts.
    is there a home for that type of deal?


    thanks
    also if it is a sole prop and they are running through a personal account they can ask the bank to add the dba to the account which when it is a sole prop most banks will also accept
    John Celifarco
    Managing Partner
    Horizon Funding Group

    3423 Ave S
    Brooklyn, NY 11234
    T: (347) 773-3990 | F: (718) 795-1990
    Linkedin: Profile
    Email: john@horizonfundinggroup.com

  8. #8
    Bank & J.Celifarco, thanks a lot!.. appreciate the feedback!
    also many thanks to Sean for this great forum!

  9. #9
    One real danger in funding a merchant who is operating out o their personal account is covered in what we at ACHWorks posted the other day - It's Not Personal...It's Business. The NACHA regulations for consumer versus commercial checking accounts and debiting via ACH from those accounts is staggeringly different. You might be helped to do a quick read of that article to get the full picture. It will only take a couple of minutes but it will be worth it. here is the website www.achworks.com/news/

  10. #10
    Quote Originally Posted by Davekirk View Post
    One real danger in funding a merchant who is operating out o their personal account is covered in what we at ACHWorks posted the other day - It's Not Personal...It's Business. The NACHA regulations for consumer versus commercial checking accounts and debiting via ACH from those accounts is staggeringly different. You might be helped to do a quick read of that article to get the full picture. It will only take a couple of minutes but it will be worth it. here is the website www.achworks.com/news/
    With personal bank statements- I believe the NACHA rules allow the merchant to unwind the last 90 days of recapture debits as of right-

  11. #11
    BB Cooper

    We have recently been successful in stopping that when we have the correctly worded Auth form and the debits were from a Commercial Account. When the Auth did not use the latest NACHA wording and the debits came from a consumer account it can still go that 90 day unwind just like you said. Man that would hurt in so many ways.

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