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Average monthly deposits AMD
Also called monthly deposits, gross deposits, AMD.
Total money into the business bank account per month, averaged over the statements reviewed, and the figure most cash advance offers are sized from.
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
Underwriters total the credits on each statement, average them across three to six months, and use the result as a proxy for revenue. Offer sizing in this market is conventionally expressed as a share of that figure, so the deposit number effectively sets the ceiling on what you will be offered.
Because it is a proxy, funders scrub it. Transfers between the business's own accounts, incoming loan or advance proceeds, refunds, chargeback reversals, insurance payouts and owner injections are stripped out. What remains is meant to be operating revenue. How aggressively each funder scrubs varies, which is one reason offers on the same file differ so widely.
Deposit count matters alongside deposit value. A business with 200 deposits a month from many customers is a different risk from one with two deposits from a single payer, even at identical totals, because the failure of one payer takes the whole month with it. Funders read this as concentration.
Deposits are also where prior funding shows. Round-figure credits followed by regular daily debits are the signature of an existing advance, and they are found in minutes.
Where this one catches people
Inflating deposits by cycling money through the account is treated as fraud, not creativity. It is also easy to detect: matched debits and credits, round numbers, same-day in and out, and transfers from a related account all stand out. Funders who spot it decline; funders who spot it after funding treat it as a misrepresentation event of default, and the personal guarantee sits behind that.
Worked through
Statements show credits of 180,000, 165,000 and 195,000 over three months, averaging 180,000. Scrubbing removes 20,000 a month of transfers from a second business account and a one-off 60,000 advance deposit. Adjusted average monthly deposits are 140,000, and the offer is sized from that.
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
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Average monthly deposits — common questions
What does average monthly deposits mean?
Total money into the business bank account per month, averaged over the statements reviewed, and the figure most cash advance offers are sized from.
Where does average monthly deposits catch people out?
Inflating deposits by cycling money through the account is treated as fraud, not creativity. It is also easy to detect: matched debits and credits, round numbers, same-day in and out, and transfers from a related account all stand out. Funders who spot it decline; funders who spot it after funding treat it as a misrepresentation event of default, and the personal guarantee sits behind that.
Is average monthly deposits the same as an interest rate?
Average 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 average monthly deposits apply to?
Merchant Cash Advance, Working Capital, Business Line of Credit, Revenue-Based Financing.
Is there a worked example of average 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 average monthly deposits?
Annual revenue, Average daily balance, Bank statement underwriting, Concentration, Credit box.
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.