Average Monthly Deposits (AMD)
Average monthly deposits (AMD) is the funder underwriting metric calculating the merchant's mean monthly business bank account deposits over the prior 3-6 months — the primary revenue-proxy used to size MCA advance amounts and qualifying thresholds.
Why This Matters
AMD is the foundational MCA underwriting metric. Funder advance amounts typically scale to 0.5x–1.5x of monthly deposits — a merchant with $50K AMD might qualify for $25K–$75K advance depending on funder appetite, time in business, industry, and existing debt. AMD calculation methodologies vary slightly across funders (some exclude transfers between owned accounts, some include returns adjustments, some apply seasonal smoothing). Misrepresentation of AMD on applications is a common reason for stipulation failure when bank statements arrive contradicting application claims.
Frequently Asked Questions
Frequently Asked Questions
How do funders calculate AMD?
Sum of business deposits over 3-6 months divided by month count. Most funders exclude internal transfers (owner-to-business or account-to-account) and adjust for one-time deposits. Some apply seasonal adjustments for cyclical businesses.
What AMD threshold is required for MCA qualification?
Typical minimum: $10K-$25K AMD for entry-level MCA programs. Higher tier programs: $50K+ AMD. Specialty programs (large commercial, specific industries) may require $100K+ AMD or higher. Below $10K AMD is typically reserved for micro-advance programs with limited funder participation.