Glossary · Underwriting
NSF
NSF means non-sufficient funds: a payment bounced because the account was short. In MCA underwriting, NSF counts per month are a core risk signal.
Also called non-sufficient funds, insufficient funds, returned item, NSF fee, overdraft
Every time a debit hits an account without enough money to cover it, the bank returns the item or charges an overdraft or NSF fee. On a statement they appear as lines like "NSF fee", "Returned item" or "Overdraft fee".
Funders count NSFs per month, often for the most recent 30 to 90 days, and many decline when the count passes a small number (commonly around 3 to 5 in the latest month). Count both fees and returned items, and keep them separate, because funders read them differently.
NSFs travel with negative days and a low average daily balance. A file with all three is hard to place and should be matched to funders that state they accept it.
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Statements, offers, positions and commissions with the math worked out, in one CRM for lending companies.
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
- GlossaryNegative daysNegative 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.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
- GlossaryTrue revenueTrue revenue is a merchant's real monthly sales on the bank statements: total deposits minus transfers, loan and MCA proceeds, refunds, reversals and owner money.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
- GlossaryStipsStips (stipulations) are the documents or conditions a funder requires before or after approval: bank statements, ID, a voided check, payoff letters and so on.Read