Situation

Business funding with multiple bank accounts: how it is read and what helps.

Revenue spread across several accounts must be shown together to be read correctly.

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

How this is read

Revenue spread across several accounts must be shown together to be read correctly.

Some businesses use one account for card settlements, another for e-transfers and a third for payroll. A review of only one account sees part of the business.

What helps

Statements from every account that receives revenue
A short note explaining what each account does
Transfers between accounts clearly labelled
Consistent account ownership

What hurts

Showing only the strongest account
Unexplained transfers
Personal accounts mixed in

A sensible plan

Send statements for every business account that receives deposits, with a line explaining each. Transfers between them are removed so revenue is not double-counted.

Illustrative arithmetic

A ecommerce retailer depositing about $70,000 a month asks for $30,000 for inventory. At a 1.22 factor the payback is $36,600, a cost of $6,600. Over roughly 6 months that is about $290 per business day, or close to 9% of monthly deposits.

Total payback: $36,600.
Cost: $6,600.
Payment: about $290 per business day, close to 9% of monthly deposits.

Every figure on this page is illustrative arithmetic in Canadian dollars. It is not an offer, a quote or a promise of approval.

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.

One more thing that helps

A simple table helps: account name, bank, what it is used for and the average monthly deposits. It takes ten minutes and makes the file faster to review, because the reviewer does not have to reverse-engineer how money moves.

Practical tip

If one account receives revenue and another pays expenses, both matter: the first shows income and the second shows obligations. Sending only the revenue account can make the business look stronger than it is, and sending only the expense account can make it look weaker. Send both.

What to send with your application

Statements for every account that receives revenue
A short table describing each account
Labels for regular transfers between accounts

Common questions

Should I send all accounts?

Send every account that receives business revenue.

Are transfers counted twice?

No. Transfers between your own accounts are removed.

Can I consolidate accounts?

Simplifying helps for the future, but send what you have now.

Keep reading

Underwriting situationsCredit, NSFs, time in business and more Funding requirementsTypical starting points for Canadian files Documents you needWhat to have ready before you apply Bad credit business fundingHow files with weaker credit are read GlossaryPlain-language definitions

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

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