Find Me Funders
Gross monthly deposits
Also called monthly deposits, average monthly deposits, bank deposits.
The total credited to a business bank account in a month, before any adjustment — the base figure most short-term funding offers are sized from, and rarely the same as revenue.
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
Open a business bank statement and there is a deposits total. That number, averaged over a lookback of several months, is the anchor for merchant cash advance and daily-debit working capital sizing. It is used because it is verifiable, recent, and hard to dress up in the way a P&L can be.
It is also crude, which is why underwriters adjust it.
What gets stripped out
- Transfers between the business's own accounts, which otherwise double-count
- Loan and advance proceeds. A funder can see a competitor's deposit and the daily debits that follow it
- Reversals, returned items and refunds credited back
- Owner capital injections
- One-off items: an insurance settlement, an asset sale, a tax refund
What is left is sometimes called true revenue, adjusted deposits or net deposits, and the offer is calculated from that, not from the headline.
What else the statements say
The deposit total is the smallest part of what is read. Number of deposit days per month, negative-day count, average daily balance, existing daily or weekly debits to other funders, and NSF activity all move the decision as much as the total. A file with strong deposits and eleven negative days underwrites worse than one with lower deposits and none.
Where this one catches people
Depositing advance proceeds and then applying does not raise your offer. Underwriters back out identifiable funding deposits precisely because inflating this number is the obvious move, and a large round-number credit followed by a pattern of fixed daily debits is not subtle. What it does instead is disclose the existing advance you may not have declared — which is a stacking and candour problem on top of a sizing one.
Worked through
Illustrative. Statements show $240,000 of total deposits for the month. Underwriting removes a $60,000 credit that matches an advance funded that month, $18,000 of transfers in from a second business account, and $4,000 of customer refunds reversed.
Adjusted deposits: $240,000 − $60,000 − $18,000 − $4,000 = $158,000. Every sizing calculation runs off $158,000.
Figures in the example are illustrative. They show the arithmetic, not a quote — what any one lender would charge is on that lender's page, where it is published at all.
Where you will meet this term
Read next
Gross monthly deposits — common questions
What does gross monthly deposits mean?
The total credited to a business bank account in a month, before any adjustment — the base figure most short-term funding offers are sized from, and rarely the same as revenue.
Where does gross monthly deposits catch people out?
Depositing advance proceeds and then applying does not raise your offer. Underwriters back out identifiable funding deposits precisely because inflating this number is the obvious move, and a large round-number credit followed by a pattern of fixed daily debits is not subtle. What it does instead is disclose the existing advance you may not have declared — which is a stacking and candour problem on top of a sizing one.
Is gross monthly deposits the same as an interest rate?
Gross monthly deposits 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 gross monthly deposits apply to?
Merchant Cash Advance, Working Capital, Business Line of Credit, Revenue-Based Financing.
Is there a worked example of gross monthly deposits?
Yes, on this page, and it is labelled illustrative. It shows the arithmetic, not a quote from any lender.
What else should I read alongside gross monthly deposits?
Average daily balance, Bank statement underwriting, Gross receipts, Negative days, Stacking.
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.