Average Daily Balance

What it means

Underwriters weigh this heavily because it shows whether the business genuinely holds a cushion. A healthy target is roughly 10% of monthly revenue. A strong revenue figure paired with a near-zero daily balance reads as a thin file.

Why it matters when you apply

Underwriting for revenue-based business funding leans on bank activity, time in business, industry and existing positions. Where this term touches one of those, it can move a decision.

See the four factors that decide most files on the qualification page.

Related terms

NSF (Non-Sufficient Funds) — A returned or declined transaction caused by too little money in the account.

Negative Days — Any day on which a business bank account balance falls below zero, even briefly.

Bank Statement Loan — Funding underwritten primarily from business bank statements rather than tax returns or financial statements.

Where this fits

Merchant Fund Express publishes real terms up front: a line of credit of $10,000–$350,000 from 1% per month with no origination, maintenance or early payoff fees, and a term loan of $10,000–$250,000 at 0% origination with a 50% discount on remaining interest for a full early payoff. See the products →

Common questions

What is average daily balance?

The average amount held in a business bank account across a statement period, measured every day rather than at month end.

How does this affect my approval?

It depends on the factor it touches — industry, bank activity, time in business or existing positions. Those four decide most files.

Where can I see real rates and terms?

Every product page on this site publishes the amount range, term, rate and fee structure up front.