Bank Statement Underwriting
An underwriting approach that evaluates a business primarily through its recent bank statements, rather than full financial statements or tax returns.
By reviewing several months of bank statements directly, a lender can see actual deposit activity, average daily balance, and any negative days or NSFs, forming a real-time view of cash flow that’s faster to produce than formal financial statements.
This approach is common across merchant cash advances and many alternative financing products, since it allows for faster approvals than a more document-heavy underwriting process built around tax returns and financial statements.
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