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What Lenders Actually Look For in Your Bank Statements

Published: November 29, 2025 | Merchant Fund Express

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Bank statements are crucial to funding applications. Here's what lenders are actually looking at.

Average Daily Balance

Lenders calculate your average balance over 30-90 days. Higher averages indicate better cash management and lower risk.

Deposit Patterns

Consistent deposits show stable revenue. Lenders prefer regular deposits over sporadic large ones, which can indicate unreliable income.

NSF and Overdrafts

Non-sufficient funds and overdrafts are red flags. They indicate cash flow problems. Minimize these before applying.

Existing Debt Payments

Lenders see your existing loan and debt payments. They calculate your ability to handle additional payments based on these obligations.

Business vs Personal Transactions

Mixing personal and business transactions looks unprofessional and makes it harder to assess your business. Keep them separate.

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