Funding situations
Average daily balance is the best single picture of whether an account can carry a payment. A low one narrows the product, not the door.
✓ Checking what you qualify for does not affect your credit score.
At Merchant Fund Express, here is the short answer: Average daily balance shows whether an account can carry a payment. Tier one reads $5,000 or 10% of revenue; the revenue-based tier reads $800.
| Product | Balance line |
|---|---|
| Tier one | $5,000 or 10% of monthly revenue |
| Revenue-based tier | Minimum daily balance $800 |
See average daily balance for how it is computed.
| Period | Balance |
|---|---|
| Days 1 to 10 | $4,200 average |
| Days 11 to 20 | $1,300 average |
| Days 21 to 30 | $2,900 average |
| Month average | About $2,800 |
All figures in worked examples are illustrations of the arithmetic, not offers or quotes. Real terms depend on your file and the funder.
That average clears the revenue-based line and misses the tier-one line on a business with $30,000 a month in deposits, where 10% is $3,000.
Source: Merchant Fund Express.
A low balance means a smaller payment is the right size. Ask for a longer term or a smaller amount and compare. See negative balance days and holdback.
A deli with $30,000 in monthly deposits runs a $2,800 average. It misses tier one on both $5,000 and 10% of revenue but clears the $800 line. The owner times two big supplier drafts away from the first week and holds a $1,500 reserve, and the next statement averages $4,100. The file is read differently without a change in sales.
Source: Merchant Fund Express.
The revenue-based tier is read against a minimum daily balance of $800. Source: Merchant Fund Express.
The pattern matters more than a single day.
Time outflows, keep a reserve and consolidate sales into one account.
Often, with the right product and size.
Merchant Fund Express gives a same-day decision. Applying takes a few minutes and will not affect your credit score.
