A strong signal of what kind of business it is. Twenty deposits a month reads as steady trading and supports a daily remittance; three large ones reads as project-based and prices worse even at identical revenue.
Full guide
MCA underwriting: what funders actually look atThe five things that decide an offer, in the order they get checked.
Related terms
Underwriting
A funder’s assessment of whether a merchant’s receipts can absorb a daily remittance, and on what terms.
Average daily balance
The mean end-of-day balance across the statement period, and the primary measure of remittance capacity.
Negative days
Days on which a merchant’s bank account carried a negative balance.
Customer concentration
The degree to which a business’s revenue depends on a small number of customers.
Settlement schedule
The timetable on which a payment processor or marketplace pays out a merchant’s takings.