1
00:00:01.110 --> 00:00:03.000
Johny Fernandez: What are
monthly deposits?

2
00:00:04.620 --> 00:00:09.810
Sean Murray: What are monthly
deposits? All right. So I'm

3
00:00:09.810 --> 00:00:14.070
assuming this question is
something that is asked on like

4
00:00:14.070 --> 00:00:16.260
DailyFunder, or like a Facebook
group. So what are monthly

5
00:00:16.260 --> 00:00:20.340
deposits? It's literally the
amount. It's literally the the

6
00:00:20.400 --> 00:00:24.690
number of deposits that go into
a merchants bank account, every

7
00:00:24.690 --> 00:00:30.150
month. It's a thing that comes
up because it's, it's one of the

8
00:00:30.210 --> 00:00:33.030
the factors that underwriters
look at when they're evaluating

9
00:00:33.030 --> 00:00:36.180
a deal. They're looking at the
total dollar amount that's

10
00:00:36.180 --> 00:00:39.360
deposited into an account, and
they're looking at the frequency

11
00:00:39.360 --> 00:00:43.140
of those deposits. So if you're
going to fund a small business,

12
00:00:43.140 --> 00:00:46.410
and you say, you know, what do
they do in revenue per month,

13
00:00:46.440 --> 00:00:49.020
and that business tells you they
do 100 grand in revenue per

14
00:00:49.020 --> 00:00:52.500
month, you're like, awesome,
cool. But then you check the

15
00:00:52.500 --> 00:00:56.130
bank account, and you see that
they're only depositing 20k per

16
00:00:56.130 --> 00:00:59.130
month. You know, like, where's
that other 80k? Yeah. I can't

17
00:00:59.130 --> 00:01:01.320
work with that 80k, because I
don't know where it's going, I

18
00:01:01.320 --> 00:01:04.020
can work with your monthly
deposits. And we're going to use

19
00:01:04.020 --> 00:01:06.750
that as the basis for revenue.
And whatever else you're

20
00:01:06.750 --> 00:01:09.390
generating, I don't know how
easily I can use it, because

21
00:01:09.390 --> 00:01:12.450
it's not going to somewhere that
I can easily grab from, right.

22
00:01:12.900 --> 00:01:15.300
So they're gonna look at your
monthly deposits. And that

23
00:01:15.300 --> 00:01:17.790
number is gonna be a lot more
important than whatever other

24
00:01:17.970 --> 00:01:21.000
revenue figure you're assigning
to yourself. And then they're

25
00:01:21.000 --> 00:01:24.480
gonna look at the frequency of
deposits. And that's because if

26
00:01:24.480 --> 00:01:28.680
you're depositing 20k per month,
but it's in one deposit, what

27
00:01:28.680 --> 00:01:31.170
happens if that one deposit
doesn't happen for that month?

28
00:01:32.190 --> 00:01:34.500
What does that mean you're gonna
have zero? You know and zero is

29
00:01:34.500 --> 00:01:36.390
going to be deposited, and
they're gonna want to know,

30
00:01:36.660 --> 00:01:40.530
where if it's that infrequent,
what is that coming from? Do you

31
00:01:40.530 --> 00:01:44.970
have one customer that pays you?
And if and if so, how stable is

32
00:01:44.970 --> 00:01:47.520
that relationship? Right? So
they're gonna look at the

33
00:01:47.520 --> 00:01:51.270
frequency of deposits, the more,
the better? Yeah. If it's just

34
00:01:51.270 --> 00:01:54.930
one or two, you know, that's an
even bigger risk, they might

35
00:01:54.930 --> 00:01:57.510
charge you more or they might
not do the deal at all. They

36
00:01:57.510 --> 00:02:01.410
like deals where there's a
deposit every single day. Okay.

37
00:02:01.440 --> 00:02:04.710
Right. And so they're gonna look
at the frequency of deposits,

38
00:02:04.740 --> 00:02:07.020
and they're gonna look at the
total amount of deposits. And

39
00:02:07.020 --> 00:02:09.210
that is going to be more
important than any type of

40
00:02:09.210 --> 00:02:12.540
revenue figure that the business
just says that it earns, because

41
00:02:12.720 --> 00:02:16.260
what comes into the bank account
is kind of the final say, at the

42
00:02:16.260 --> 00:02:16.830
end of the day.