Every advance is repaid by taking money out of an account every business day. A negative day is direct evidence that the account sometimes cannot support that, which is why underwriters weigh it more heavily than brokers expect.
| Pattern | How it reads |
|---|---|
| None across four months | Clean. Full field of funders |
| One, with an explanation | Usually survivable if you provide the context |
| Two or three, scattered | Narrower field, worse pricing |
| Several a month | The account cannot carry a remittance |
| The same week every month | A structural cash-flow problem |
The last row is the one to notice
Negatives that recur at the same point in each month usually mean a fixed obligation lands before the revenue that covers it — rent, payroll, a supplier. That is a structural pattern rather than an accident, and a daily remittance will make it worse in a predictable way.
What to check yourself
- The number of negative days, per month, not in total.
- Whether they cluster around a date, which points at a fixed obligation.
- Whether NSF fees appear alongside them — bounced items read worse than a brief dip.
- What the balance looked like on the other days. A business that lives near zero is a different risk from one that dipped once.
If the picture is bad, say so to the merchant before you submit. A decline you predicted costs a phone call; one you discovered costs a submission, some credibility with the funder, and the merchant’s confidence in you.
Questions brokers ask
What are negative days in MCA underwriting?
Days on which the business account closed below zero. Funders treat them as direct evidence of whether the account can absorb a daily remittance, which is why they weigh heavily.
How many negative days are acceptable?
It varies by funder, but a clean set is the goal. One with a genuine explanation is usually survivable; several a month, or a recurring pattern, is generally decisive.
Why do recurring negative days matter more?
Because they usually mean a fixed obligation lands before the revenue that covers it. That is structural rather than accidental, and a daily remittance makes it worse in a predictable way.
Should you explain an anomalous month to the funder?
Yes, in one line, before they ask. A month with context attached reads completely differently from the same month left to speak for itself.
Do NSF fees make it worse?
Yes. A brief dip below zero reads better than bounced items, because returned payments suggest obligations the business could not meet rather than a timing gap it absorbed.
Reference
Holdback and daily paymentWhat the daily debit takes out, which is what turns a thin week into a negative day.
Alex Makowski
Founder, Infinite Bookings
Runs the lead generation operation behind Infinite Bookings — paid traffic, the funding application, and the delivery pipeline that puts records into brokers’ CRMs.
Reachable directly at alex@infinitebookings.com or 732-609-7182.