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Deposit frequency
Also called deposit count, number of deposits.
How many separate deposits land in a business bank account each month, read by underwriters as a proxy for how many customers are paying and how evenly the money arrives.
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
Bank statement underwriting reads four things together: total deposits, how many deposits made up that total, the ending balance pattern, and the count of negative days and returned items. Frequency addresses a question the total cannot answer, which is whether the revenue is spread across many payers or dependent on a few.
A restaurant depositing card batches daily and a contractor receiving three progress payments a month can post identical monthly volume with entirely different risk. The contractor's account is empty for three weeks at a time, and a daily debit does not care that a big check is coming on the 28th.
Minimum deposit counts differ from funder to funder and by product, and they are treated as internal credit policy rather than published criteria. A file below one funder's threshold routinely clears another's.
Where this one catches people
Transfers between your own accounts inflate the count and get stripped out, along with loan proceeds and deposits that are obviously another funder's money. Deliberately cycling funds to manufacture activity is fraud when it induces a funding decision, and it is visible: the withdrawal side of the statement shows the same amounts leaving the day before they arrive.
Where you will meet this term
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Deposit frequency — common questions
What does deposit frequency mean?
How many separate deposits land in a business bank account each month, read by underwriters as a proxy for how many customers are paying and how evenly the money arrives.
Where does deposit frequency catch people out?
Transfers between your own accounts inflate the count and get stripped out, along with loan proceeds and deposits that are obviously another funder's money. Deliberately cycling funds to manufacture activity is fraud when it induces a funding decision, and it is visible: the withdrawal side of the statement shows the same amounts leaving the day before they arrive.
Is deposit frequency the same as an interest rate?
Deposit frequency 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 frequency apply to?
Merchant Cash Advance, Working Capital, Revenue-Based Financing.
Is there a worked example of deposit frequency?
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 frequency?
Average daily balance, Bank statement underwriting, Deposit volume, NSF fee, Negative days.
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.