Guide

How to read your bank statements like a funder a practical guide.

A funder reads the same statements you do, but looks for different things. Here is what they see, and what you can fix before applying.

Apply Now Do I Qualify?

✓ Checking what you qualify for does not affect your credit score.

Overview

A funder reads the same statements you do, but looks for different things. Here is what they see, and what you can fix before applying.

Start with deposits, not balances

Add up every deposit for each of the last four months and write the totals in a column. A funder is looking for the pattern first: are the totals steady, rising or falling? One strong month surrounded by weak ones is read very differently from four similar months.

Then strip out anything that is not revenue: transfers from your own accounts, loan proceeds and one-off injections. What is left is the number that matters.

Find the low days

Scan the daily balance and mark every day it falls below a few hundred dollars. Count them. Most reviews tolerate a handful a month, and a clean recent month matters more than a messy older one.

If the low days cluster around payroll or a large supplier payment, you can often fix the pattern by moving the payment date a few days, which costs nothing.

Look at the debits

Note every recurring debit: loan payments, other advances, leases and subscriptions. Add them up. This is what is already committed before any new payment.

Returned items, marked NSF, are the thing to explain. A one-line note with the date and the cause turns a question mark into a story.

Write the story in four lines

Before applying, write four lines: what the business does, how deposits behave across a normal month, what the money is for and how you will repay. That note, with clean statements, is most of a strong file.

Typical starting points

Monthly revenueTypically from around $20,000 a month in deposits for Canadian files. The exact line varies by funder and by file.

Time in businessTypically about 12 months. Newer businesses can be reviewed, but the options narrow.

Account healthLimited low-balance or negative days. Funders read the last few months of bank statements for this.

CreditScores from 500 are considered. A score of 600 or higher opens more options and better offers.

DocumentsA signed application and recent business bank statements, typically the last four months.

Existing advancesFiles with an existing advance can be reviewed, including second position.

Takeaways

Totals by month first, then low days, then recurring debits
Strip out transfers and one-offs before you quote revenue
Four lines of story beat a page of apology

Common questions

How many months should I review?

Four is typical. Looking at six shows a longer pattern and can help you spot seasonality before a funder does.

What if a month looks bad?

Explain it in one or two sentences with a date and a cause. A visible recovery in the next month usually settles it.

Should I clean up my account first?

You can tidy timing and separate personal items going forward, but do not alter statements. Funders see the real record.

Keep reading

GuidesPractical guides for Canadian owners GlossaryPlain-language definitions Funding requirementsTypical starting points for Canadian files Documents you needWhat to have ready before you apply Funding use casesPayroll, inventory, expansion and more

Educational information only. It is not legal, tax or accounting advice.

See what you qualify for

Same-day decision. Applying takes a few minutes and will not affect your credit score.

Apply Now →