Glossary
The MCA underwriting glossary
Every metric a broker or funder reads off a bank statement, defined in plain English — with how underwriters actually use it. Start with a term or jump straight to the free scanner.
- Average Daily BalanceADB
- The mean of a business account’s end-of-day balance across every calendar day in the statement period — the truest read of how much cash a merchant actually holds. Read more →
- Factor Rate
- The multiplier that sets the total cost of a merchant cash advance — advance amount × factor rate = total payback. Read more →
- Holdback
- The fixed percentage of daily receipts (or a fixed daily/weekly ACH amount) a funder collects until the advance is repaid. Read more →
- MCA Position
- An active merchant cash advance a business is already repaying, visible on a bank statement as a recurring daily or weekly ACH debit to a funder. Read more →
- Negative Days
- The number of days in a statement period the account balance was below zero — a fast read on how often a merchant runs out of cash. Read more →
- Non-Sufficient FundsNSF
- A transaction the bank rejects because the account lacks the funds to cover it — a direct signal of cash-flow strain that MCA underwriters count closely. Read more →
- Paper Grade
- A letter grade (A–D) summarizing a merchant’s risk profile, used to set advance size, term and factor rate. Read more →
- True Revenue
- A merchant’s actual sales revenue after transfers, reversals, self-funding and prior advances are stripped out of gross deposits. Read more →
See these numbers on a real statement
Drop a merchant’s bank statements and get true revenue, ADB, NSFs, negative days and existing positions — reconciled against the bank’s own printed balances. Your first business is free.