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Johny Fernandez: What are
monthly deposits?

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Sean Murray: What are monthly
deposits? All right. So I'm

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assuming this question is
something that is asked on like

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DailyFunder, or like a Facebook
group. So what are monthly

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deposits? It's literally the
amount. It's literally the the

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number of deposits that go into
a merchants bank account, every

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month. It's a thing that comes
up because it's, it's one of the

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the factors that underwriters
look at when they're evaluating

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a deal. They're looking at the
total dollar amount that's

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deposited into an account, and
they're looking at the frequency

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of those deposits. So if you're
going to fund a small business,

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and you say, you know, what do
they do in revenue per month,

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and that business tells you they
do 100 grand in revenue per

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month, you're like, awesome,
cool. But then you check the

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bank account, and you see that
they're only depositing 20k per

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month. You know, like, where's
that other 80k? Yeah. I can't

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work with that 80k, because I
don't know where it's going, I

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can work with your monthly
deposits. And we're going to use

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that as the basis for revenue.
And whatever else you're

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generating, I don't know how
easily I can use it, because

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it's not going to somewhere that
I can easily grab from, right.

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So they're gonna look at your
monthly deposits. And that

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number is gonna be a lot more
important than whatever other

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revenue figure you're assigning
to yourself. And then they're

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gonna look at the frequency of
deposits. And that's because if

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you're depositing 20k per month,
but it's in one deposit, what

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happens if that one deposit
doesn't happen for that month?

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What does that mean you're gonna
have zero? You know and zero is

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going to be deposited, and
they're gonna want to know,

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where if it's that infrequent,
what is that coming from? Do you

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have one customer that pays you?
And if and if so, how stable is

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that relationship? Right? So
they're gonna look at the

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frequency of deposits, the more,
the better? Yeah. If it's just

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one or two, you know, that's an
even bigger risk, they might

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charge you more or they might
not do the deal at all. They

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like deals where there's a
deposit every single day. Okay.

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Right. And so they're gonna look
at the frequency of deposits,

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and they're gonna look at the
total amount of deposits. And

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that is going to be more
important than any type of

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revenue figure that the business
just says that it earns, because

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what comes into the bank account
is kind of the final say, at the

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end of the day.