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Johny Fernandez: What is a daily
average balance?

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Sean Murray: What is a daily
average balance? So this comes

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up again in underwriting kind of
like monthly deposits. So, a

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daily average balance is a
factor that underwriters use to

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gauge the cash flow of a
business. Because if, if the

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success of the deal hinges upon
pulling out a percentage of

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future receivables, then they're
gonna need to be able to keep

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cash in the bank in order for
this all to work out. And so

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they're not only gonna evaluate
monthly deposits, and the

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frequency of deposits, but
they're going to look to see how

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much money ends up staying in
the bank. And they're gonna look

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at it on on a sort of an average
daily basis. It's cause you

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can't just have money in the
account at the end of the month,

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but nothing in there for the
other 29 days, right. So they're

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gonna look at look at on
average, how much you keep in

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the bank account. And that's
going to play a factor into an

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approval. Because if the if the,
if the goal is to debit, say,

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$1,000 per week, from the
account, and the average daily

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ending balance is about 50
bucks, well, there's a high

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likelihood that we're gonna head
into either NSFs or overdrafts

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and that funder may not be able
to get their money, right. And

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it might be terms that are just,
you know, that don't work for

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the merchant. So the average
daily ending balance is

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something that underwriters look
at to figure out whether or not

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the terms of the deal are
compatible with the cash flow of

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the business.