Most non-bank lenders underwrite primarily from business bank statements — typically 3–12 months. The statements stand in for tax returns and financial statements, and underwriters extract a surprising amount of signal from them. Knowing what they look for helps borrowers present a stronger file.
Average monthly deposits and deposit count
The headline number is average monthly deposits (a rough proxy for revenue) and the count of deposits per month (a proxy for revenue diversity). 30 deposits a month from many customers reads stronger than 2 deposits from one large client.
Negative days and NSF fees
Underwriters count days the account ran negative and NSF (non-sufficient funds) fees. Even a few negative days in the trailing 3 months can drop the offer or kill the deal. NSFs read as cash-flow stress, regardless of total revenue.
Existing daily/weekly debits
Lenders specifically look for existing daily or weekly ACH debits — the signature of an existing MCA or short-term loan. Multiple stacked positions are usually disqualifying or trigger a much higher cost. Disclose existing positions upfront; they will be found.
Ending balance trend
Ending balance trending up over the trailing 3–6 months reads positive. Trending down is a yellow flag that may require explanation. A consistent operating buffer (often quoted as "1.5x average daily expenses") strengthens the file.
Presenting cleanly
Use the business operating account exclusively for business activity. Run personal expenses through a personal account, not the business account. If you have unusual one-time deposits (asset sale, owner contribution), be ready to explain them — unexplained large deposits can be flagged as anomalies.
Sources
Editorial note: This article is general information about how small-business lending products work. It is not financial, legal, or tax advice for any specific borrower. Loan terms, eligibility, and rates vary by lender, borrower profile, and current market conditions, and the specific facts of your business will determine which products and structures actually fit. Consult a CPA, attorney, or SBA-approved lender before making decisions that affect your business.