Glossary · Underwriting
Negative days
Negative days are the days in a month when a merchant's bank account ends below zero. Funders cap them because each one risks a returned debit.
Also called negative balance days, days negative, overdrawn days
Count the days whose ending balance is below zero. Most funders count ending balances, not intraday dips, but some count either, so say which method was used.
Strong paper usually shows zero to three negative days a month; some funders accept more. Negative days, NSFs and a low average daily balance are read together.
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Related
- FeatureBank statement analysisEnter each month's deposits, ADB, NSFs and negative days per bank account and get averages, revenue trend, holdback and an affordability check on the deal.Read
- FeatureLender matchingStore every lender's criteria once and see which lenders each deal qualifies for, with the rule behind every pass, warning and fail. Built for MCA and business lending.Read
- GlossaryNSFNSF means non-sufficient funds: a payment bounced because the account was short. In MCA underwriting, NSF counts per month are a core risk signal.Read
- GlossaryAverage daily balance (ADB)Average daily balance (ADB) is the mean of a bank account's end-of-day balances over a month. Funders use it to judge whether a merchant can carry daily payments.Read
- GlossaryPaper gradePaper grade is shorthand for deal quality, A through D. A paper has strong revenue, credit and statements and gets the lowest factors; D paper is the riskiest.Read
- GlossaryDecline reasonA decline reason is why a funder turned a deal down: revenue too low, too many positions, NSFs, restricted industry or state, credit, missing stips and similar.Read