[fintechlooker]

I am trying determine how having a high monthly deposit but low average daily balance affects on loan amount. Basically, I have a merchant that has high revenue/profits in last 3 months. However, he withdraws to personal accounts quickly and prefers keep Business account at low balance.

Monthly Deposits - $200k
Owner withdrawal -$150k
Other expenses- $50k

Avg balance kept it $5K

I think this affect the amount he can be approved. I may have to convince leave more money in.

Any suggestions? Thanks

[Olderguy]

If his business account shows transfers, submit with the personal account statements too. When I worked for a direct lender, we looked at both in this instance.

[BR-Nightmare]

It poses as a red flag, nothing too crazy but yes it would not get favorable offers.

You have to take affordability into account, if the average balance is low, it makes their affordability low.

Plus, one would say this owner is not being smart with their money as they could have great benefits using his business account for many expenses.

This is if they are attempting to receive an MCA.

It's a different story is its another finance product.

[Capitalize Group]

AVG Daily balance of 5k is decent for this revenue.

Feel free to submit to subs@capitalizegroup.com for an approval.