Guide № 3 · updated August 2026
What funders actually check
Underwriting isn't a mystery — it's five checks, and you can see yourself through their eyes before you ever apply. Better: most of the five are fixable in 60 days.
The five checks, in the order they kill applications
- Bank deposits — the real revenue test. Funders read your last 3–6 months of business bank statements and count deposits, not what your accounting software says. Common bars: $10,000–$15,000/month for advances, $25,000+/month for better programs. They also count deposit frequency — six deposits a month reads as a real operating business; one lump transfer reads as a hobby.
- Average daily balance and NSFs. A balance that hovers near zero, or bounced payments (NSF/overdrafts), tells an underwriter your cash flow can't absorb their daily withdrawal. 3+ NSFs in a recent month is an instant decline at many shops. This is the most fixable item on the list: 60 days of keeping a cushion in the account changes the picture entirely.
- Time in business. Most funders want 6–12+ months minimum; better-priced products want 2+ years. They verify it from your bank history, state filings, and business licenses — not your word. If you're at month 5, waiting two months can literally unlock a cheaper tier.
- Personal credit — but not the way you fear. Advances approve down into the 500s; term loans typically want 600–625+; the best rates want 680+. Underwriters care less about the score than about recent problems: fresh collections, a bankruptcy in the last year, or — the big one — evidence of existing advances in your bank statements. Which brings us to…
- Stacking check. Underwriters scan your statements for other funders' daily withdrawals. An existing advance drops your offer quality; two or more is a decline nearly everywhere (and the shops that will still fund a stacked business are exactly the ones to avoid). They also check public records for existing liens and UCC filings against your business.
The verdict
Instant disqualifiers to know about: open bankruptcy · active tax lien without a payment plan · sub-6-months in business at most shops · 3+ recent NSFs · already stacked with two advances. If any of these is you, the honest move is usually to fix it first, not to shop harder for a "yes" — the yes you'll find is priced for desperation.
The 60-day tune-up before you apply
- Days 1–60: keep every business dollar flowing through one business checking account (funders can't count revenue they can't see); maintain the biggest cushion you can; zero NSFs.
- Week 1: pull your own credit reports (free, all three bureaus) and dispute anything wrong; make sure your state business registration and licenses are current and match your legal name exactly — mismatches stall approvals for days.
- Week 2: assemble the standard document pack once: 6 months of bank statements, driver's license, voided business check, most recent tax return. Every funder asks for roughly this; having it ready turns a week of back-and-forth into a same-day file.
- Before signing anything: run the offer through the true-cost calculator and ask for the APR in writing. You already know why.
The verdict
Two months of boring discipline routinely moves a business from "advance at 1.4" to "term loan at a third of the cost." That difference is worth more than any negotiation trick.