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Deposit volume
Also called monthly deposits, gross deposits, bank deposits.
Total dollars deposited into the business bank account over a month, the primary sizing input for advances and short-term working capital.
Drafted with AI assistance. Not yet independently checked. Nobody has verified the claims on this page against a source, so treat the figures and legal points as a starting point rather than as settled, and confirm anything you are about to act on. How we check things.
What it means
Most revenue-based underwriting begins by pulling three to six months of statements and computing average monthly deposits. Adjustments follow: internal transfers removed, loan and advance proceeds removed, obvious refunds and reversals netted, and in some shops the deposits attributable to a single unusually large one-off backed out.
The adjusted figure drives the offer. Funders express maximum size as a share of average monthly deposits and vary that share with time in business, industry, credit, and how many other positions are already collecting from the same account.
Processing volume is a parallel input where the product is card-based. A funder taking a percentage holdback of card settlements cares more about what settles through the terminal than about what the bank statement shows in total.
Where this one catches people
Deposits are not revenue and revenue is not margin. Businesses that move money on behalf of others, such as freight brokers paying carriers, staffing firms funding payroll, or contractors passing through materials at cost, show large deposits against thin margins. The offer is sized on the deposits; the debit is serviced out of the margin. That mismatch is the most common reason a correctly underwritten file still strangles the business.
Where you will meet this term
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Deposit volume — common questions
What does deposit volume mean?
Total dollars deposited into the business bank account over a month, the primary sizing input for advances and short-term working capital.
Where does deposit volume catch people out?
Deposits are not revenue and revenue is not margin. Businesses that move money on behalf of others, such as freight brokers paying carriers, staffing firms funding payroll, or contractors passing through materials at cost, show large deposits against thin margins. The offer is sized on the deposits; the debit is serviced out of the margin. That mismatch is the most common reason a correctly underwritten file still strangles the business.
Is deposit volume the same as an interest rate?
Deposit volume is defined above; if you are comparing it against a rate, check whether the two measures share a time dimension before you put them side by side.
Which products does deposit volume apply to?
Merchant Cash Advance, Working Capital, Revenue-Based Financing, Credit Card Processing.
Is there a worked example of deposit volume?
Not on this entry. Where a term is arithmetic, the arithmetic is shown; this one is not primarily a calculation.
What else should I read alongside deposit volume?
Average daily balance, Bank statement underwriting, Deposit frequency, Funding amount, Holdback.
Has this definition been checked?
Not yet. This entry is drafted and live, and the notice at the top says so. Confirm anything you are about to act on.
Is this legal advice?
No. It is a definition. What a clause does in your contract, in your state, is a question for a lawyer licensed where you are.
Can I suggest a term?
Yes — [email protected]. The glossary grows from what people are actually shown in contracts.