Brokers who can pre-qualify a deal from the bank statements before submitting save themselves hours of submission time and submit cleaner paper to their funders. Here's what you're actually looking for.
The five numbers that matter
- 01.Total deposits (gross revenue proxy)
- 02.Number of monthly deposits (revenue consistency)
- 03.Average daily balance (cash discipline)
- 04.Ending balance trend (growing, flat, or declining)
- 05.NSFs and overdrafts (red flag count)
Quick deal qualification
Most funders need: $15K+ monthly deposits, 5+ deposits per month, average daily balance above $1,500, no more than 3–5 NSFs across the 4-month package, and a declining-trend tolerance that varies by funder.
If a merchant has $100K monthly deposits but a $400 average daily balance, the cash flow story is broken. They make it but they spend it instantly. Funders see that as elevated default risk.
Red flags that kill deals
- ▸More than 6 NSFs in 4 months
- ▸Days with negative ending balance
- ▸Existing MCA daily debits visible on the statements (instant stack flag)
- ▸Tax levies, garnishments, or court orders showing as transactions
- ▸Sudden drops in deposit volume month-over-month with no seasonal explanation
- ▸Round-number deposits that look like inter-account transfers (not real revenue)
How to spot existing MCA
Daily debits in round amounts ($200, $350, $500 per business day) almost always indicate active MCA. Look for ACH descriptors with funder names — many funders' names show up directly in the descriptor line. If you see two distinct daily debits, the merchant is stacked.
The Owner Leads Direct Editorial & Research team writes, reviews and maintains every public page on this site. Drafts are produced collaboratively (including AI-assisted drafting) and reviewed by a human editor with relevant subject-matter experience in MCA, commercial lending, B2B data or compliance before publication. Every quantitative claim is cited to a primary source or labeled as internal Owner Leads Direct data. We publish corrections within 72 hours of a verified report.
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