Glossary
Bank statement underwriting
Deciding on funding mainly from recent bank statements.
Underwriting based on the last several months of business bank statements: average deposits, deposit count, ending balances, negative days and NSFs, existing financing debits, and trend. It is how revenue-based products decide quickly without tax returns. What they read, in order.
How it appears in a contract
Statement requests in the application; some providers use an instant read-only bank connection instead of PDFs.
Worked example
$42,000 average deposits, 38 deposits a month, no negative days: a strong file for a revenue-based product regardless of credit score.
Illustrative figures on stated assumptions; not quotes.
What to ask
- How many months, and are transfers excluded from deposits?
- How are NSFs and negative days weighed?
- Is a bank connection required or optional?
Related terms
Cash flow underwriting · NSF (non-sufficient funds) · Bank verification · all terms
Educational definitions, not legal advice. Contract terms and their legal treatment vary by provider and state; read your agreement and ask a professional.
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