This tool grades your retained cash pattern, not your gross revenue, because that's what underwriters actually weight most heavily. Gross deposits show how much revenue passes through your account; average daily balance (ADB), month-end ending balance, and NSF count show how much cash the business actually keeps. See why gross revenue isn't enough for the full explanation.
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The Full Grading Rubric
The complete criteria the analyzer above applies, shown here as a static table so the full rubric is readable without running the calculator:
| Grade | Gross Deposits | ADB | NSFs (90 days) | Meaning |
|---|---|---|---|---|
| A: Prime Ready | ≥ $15,000 | ≥ $3,000 | 0 | Strong approval potential; steady deposits with a healthy daily balance. |
| B: Standard Approval | ≥ $10,000 | ≥ $1,000 | ≤ 1 | Moderate approval potential; a higher ADB would reduce factor rates. |
| C: High-Risk / Restructured | ≥ $10,000 | < $1,000 | 2 (or metrics below B) | Deposit volume is there, but thin ADB or NSF history may cause daily payment friction or shorter terms. |
| Risk Warning | < $10,000 | N/A | ≥ 3 | Narrower set of likely offers. You can still apply. |
Account balance is deliberately absent from that rubric. T.A.G. applies no balance minimum, does not screen a file on cash flow, and does not decline anyone over their balances; the funding provider makes that determination when it reviews the file. The grade above reads deposit volume, average daily balance, and NSF history only, and a Risk Warning is a description of how wide your likely options are, never an instruction to hold off applying. Baseline document eligibility is a signed application plus at least 4 consecutive months of business bank statements. Six are requested and preferred, because a longer history gives the provider more to work with, but a complete file is never held back waiting for months five and six.
Why These Four Numbers
- Gross monthly deposits: the baseline revenue check. T.A.G.'s document baseline is at least 4 consecutive months of business bank statements, with 6 requested and preferred; this tool's own A/B grading tiers start at $10,000+ in gross deposits because grading reflects offer quality, not the minimum eligibility bar.
- Average daily balance (ADB): the sum of every day's ending balance divided by days in the period; smooths out single-day spikes to show your real cash cushion.
- Month-end ending balance: a snapshot of what's left when the statement closes, averaged across your most recent statements. This one is context, not a test. T.A.G. sets no balance minimum and does not decline a file over its balances, so it does not move the grade above; the funding provider weighs it alongside deposit volume when it reviews your file.
- NSFs / negative days: direct evidence of insufficient cushion; the frequency, not just the existence, of NSFs is what underwriters weight.
→ For the full underwriting formulas and worked examples, see how MCA underwriting works. To estimate a funding amount range (not a readiness grade), try the bank statement qualification estimator.
Frequently Asked Questions
What is a good average daily balance for MCA underwriting?
$500 is the baseline minimum most funders require to consider an application at all. $3,000 or more is generally treated as prime/lower-risk. Between those, expect standard (not best-tier) terms.
How many NSFs can I have and still qualify?
0 NSFs supports the strongest terms. 1 NSF in the review period is generally still standard approval. 2 NSFs typically moves an applicant to a higher-risk tier with more restrictive terms. 3 or more NSFs is a common decline threshold at many funders.
Is this tool a real underwriting decision?
No. This is an educational, instant self-assessment based on publicly stated industry underwriting patterns; it is not a formal underwriting decision, credit check, or offer. T.A.G. is a business capital broker connecting applicants to funding partners; actual approval, rate, and terms are determined by the funder's own full underwriting review.