Why Underwriters Like to See a Busy Bank Statement

When I read a bank statement, the first number I look at isn't the balance. It's the deposit count.

I want to see ten or more deposits a month. That's the floor. Under that, unless there is a valid explanation, I'm out.

Why deposit count matters more than deposit size

A business with twenty small deposits a month is a business with many customers paying in. A business with two big deposits a month is a business riding on one or two customers. Those are completely different risk profiles, even if the total revenue looks the same on paper.

The receivable I'm purchasing is collected daily. The collection method depends on daily revenue hitting the account. If deposits only land twice a month, the daily forwarding doesn't work. The math breaks.

What different deposit counts tell me

Under five deposits a month is a decline unless there is a valid explanation. There isn't enough customer flow to support a daily collection structure.

Five to nine deposits a month is a weak file. The business may have real revenue, but the concentration risk is too high.

Ten to fifteen deposits a month is the baseline. Acceptable, workable, but I'm reading the rest of the file carefully.

Fifteen to thirty deposits a month is a strong file. The business has steady customer flow and the daily revenue lines up with the daily collection.

Daily deposits, twenty plus a month, is the kind of file I want. Customer flow is real, daily, and diversified.

The lens

I'm not looking at how much money came in. I'm looking at how many times money came in, and from how many different places. Concentration risk is the silent killer in this asset class. A high revenue number from one customer is a worse file than a lower revenue number from thirty customers.

Ten deposits a month is the floor. Under that, unless there is a valid explanation, the structure doesn't work.