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 | Ending Balance | ADB | NSFs (90 days) | Meaning |
|---|---|---|---|---|---|
| A — Prime Ready | ≥ $15,000 | ≥ $4,000 | ≥ $3,000 | 0 | Strong approval potential; cushion easily supports daily/weekly ACH. |
| B — Standard Approval | ≥ $10,000 | ≥ $4,000 | ≥ $1,000 | ≤ 1 | Moderate approval potential; a higher ADB would reduce factor rates. |
| C — High-Risk / Restructured | ≥ $10,000 | ≥ $4,000 | < $1,000, or NSFs = 2 | 2 (or metrics below B) | Meets the balance floor but thin ADB or NSF history may cause daily payment friction or shorter terms. |
| Risk Warning | < $10,000 | < $4,000 | — | ≥ 3 | Underwriting caution; explore cash-flow stabilization options first. |
Baseline eligibility requires 6 consecutive months of business bank statements with a minimum $4,000+ ending balance each month. Evaluation order matters at the edges: Risk Warning conditions (gross < $10,000, ending balance < $4,000, or 3+ NSFs) are checked first and take priority over Grade C whenever both would technically apply — a sub-$4,000 ending balance is treated as a decline-level signal regardless of what the other numbers look like.
Why These Four Numbers
- Gross monthly deposits — the baseline revenue check. T.A.G.'s underwriting baseline requires 6 consecutive months of business bank statements; 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. T.A.G.'s published floor to be considered for an application at all is a minimum $4,000+ ending balance each month; a balance below that is one of the most common automatic decline triggers.
- 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.