Read Your Own Bank Statements the Way an Underwriter Will
By Brent Christiansen · Published · Updated
Before applying for working capital, review three months of business bank statements. Check the deposits, daily balances and returned items so you can explain changes in cash flow and assess the payment your business could carry.
Add up the deposits, then subtract the noise
Review the customer receipts in each month and identify transfers between your own accounts, owner contributions and refunds. Explain unusual deposits so the reviewer can understand the business activity behind the numbers.
The amount offered depends on review of your application, deposits and balances. Start with the business expense you need to cover and the payment your cash flow could support.
Look at the balance between deposits
Look at balances between deposits and note when payroll, rent, fuel and other obligations are paid. This helps you assess the cash available for another payment.
Compare any proposed payment schedule with your existing expenses and expected receipts. Explain seasonal or unusual changes in the account.
Count the returned items
Identify overdrafts, NSF fees and returned payments. Be ready to explain what happened and whether the issue is continuing.
Provide recent complete statements and describe your current circumstances. Your representative can explain whether updated documents or further verification are needed.
Check that it's the right account
Provide statements for the business account receiving the revenue. If receipts go into multiple accounts or an account is not in the business name, explain that to your representative so the document requirements can be clarified.
The statement format is: Last 3 months of business bank statements: all pages, PDF downloads from online banking (no photos or partial pages). Missing pages or unreadable images can delay review.
Then apply with a real number in mind
Avanti offers working capital of $10,000 to $250,000 over 6 to 24 months, with the amount based on review of your business-bank activity. Start with the application and three months of complete statements. Additional verification can affect the offer and timing.
Financing covered in this article
- Working capital without tax returnsStart with the application and three months of business statements; additional verification may be needed.
- Working capital with bad creditYour deposits and credit profile are reviewed. Every credit profile considered, with no down payment.
- How fast working capital fundsTiming depends on complete review; funds can arrive in as little as 24 hours after signing.
Common questions
How much working capital can I get based on my bank statements?
The amount depends on review of your business-bank deposits, balances and application. Avanti offers $10,000 to $250,000; your representative will explain the amount your file supports.
Do overdrafts hurt a working capital application?
Overdrafts and returned payments are reviewed with the rest of the file. Explain their causes and whether the issue is continuing; the outcome depends on the full review.
Can I use personal bank statements for working capital?
The starting requirement is business bank statements. If business receipts go into a personal account, explain the situation to your representative before assuming which documents will be accepted.
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