Skip to content

Boosting Your Chances of ERC Financing:
Tips to Avoid the Top 10 Deal Killers

credit refund ertc financing


Small businesses seeking financing through the Employee Retention Credit (ERC) program may encounter several deal killers that could impede their chances of approval. To help these businesses navigate the ERC financing process, we have compiled a list of the top 10 ERC financing deal killers.

  1. Open Tax Liens from the IRS: One of the most significant deal killers are open tax liens from the IRS. Tax liens are placed on businesses that fail to pay their taxes and can severely impact their chances of securing ERC financing approval.
  2. Past Due 941 Payments: Another deal killer is having past due 941 payments. These payments are a crucial aspect of payroll taxes, and unfiled and past due payments can negatively affect your prospects for ERC financing approval.
  3. More Than Three Un-filed 941’s: Businesses that have more than three un-filed 941’s will also struggle to secure ERC financing approval. Failing to file can also result in significant penalties and fines.
  4. Multiple Blanket UCC Filings: Multiple blanket UCC filings can also be a deal killer for businesses seeking ERC financing approval. Blanket UCC filings encumber all business’s assets.
  5. Multiple Judgments: Multiple judgments against a business can also pose a significant roadblock in securing ERC financing approval. Judgments are court orders requiring a business to pay a debt, and multiple judgments suggest financial instability.
  6. LOTS of Merchant Cash Advances: (MCA’s) can hinder a business owners’ chances of securing approval and can have a significant impact on the financial stability of the business.
  7. Low Credit Scores: Low credit scores can also potentially be a deal killer for businesses seeking ERC financing approval and depending on the score, can make them ineligible.
  8. Un-filed Business Taxes for 2 Years or More: Businesses that have un-filed taxes for two or more years will also have a challenge getting approved for ERC financing. Failing to file taxes is a red flag for lenders and can  also lead to severe penalties and fines.
  9. Major Losses on Financials: Major losses on financials can impact a business’s chances of securing ERC financing approval. Lenders review a business’s financials to determine their ability to repay a loan, and significant losses suggest financial instability.
  10. Background Check Issues: Finally, background check issues can also be a deal killer for businesses seeking ERC financing. Lenders conduct background checks to ensure they are lending to trustworthy individuals, and any red flags can negatively impact a business’s chances of approval.
still waiting for your ertc refund check

Small businesses seeking ERC financing must be aware of these deal killers and take steps to address them before submitting their financing application. By addressing these issues, UPFRONT, businesses can increase their chances of securing approval.

Applying for ERC financing can be a complex and lengthy process, but it doesn’t have to be. Consider calling the ERC Funding Network for assistance. They can help you navigate the application process, and their team of experts can answer any questions you may have. Call Gerald Watson at (888) 284-3339 for more information.