What AutomateMCA analyzes — and what it outputs

Every field in the AutomateMCA output maps to a decision point your underwriters already care about. Here is what the system extracts, how it works, and what you get.

Bank Statement Scrubbing and Cashflow Calculation

AutomateMCA reads every transaction line across 3–6 months of bank statements and builds a month-by-month cashflow summary. Before any metrics are calculated, the system strips non-revenue inflows: existing MCA deposits, SBA and term loan proceeds, interaccount transfers, and known recovery company credits.

What remains is the merchant's true operating revenue — the only number that actually matters when sizing a deal.

  • Average Daily Balance (ADB) by statement month
  • Gross monthly deposits vs. true revenue deposits
  • Total monthly debits and debit-to-deposit ratio
  • Credit card and processor deposit volume separated from ACH inflows
  • Low-balance day count and negative-day count per month
  • Ending balance trend across the statement period
Bank Statement Analysis — Acme Plumbing LLC
MonthGross DepositsTrue RevenueADBNSFs
Oct$84,200$61,400$12,8402
Nov$91,500$68,200$14,1001
Dec$76,300$55,900$9,2404
Avg$84,000$61,833$12,0602.3/mo
MCA deposits stripped: $22,800/mo avg — excluded from revenue calculation

Stacking Detection and Existing Obligation Mapping

Stacking is one of the primary risk factors in MCA underwriting. AutomateMCA identifies ACH debits that match known MCA funder patterns, estimates daily remittance amounts, and calculates what percentage of the merchant's daily deposits are already committed to existing positions.

The system flags when a merchant is in two or more active positions and surfaces the estimated payoff timeline based on visible debit patterns — giving your underwriters the information to decide whether a new position is viable before they spend time on a full review.

  • Active position count estimated from ACH debit patterns
  • Daily remittance obligations as a percentage of average daily deposits
  • Estimated remaining balance per identified position
  • Stacking risk score (low / moderate / high)
  • Suggested max new remittance given current obligations
Position Analysis — Acme Plumbing LLC
Position 1$480/day ACH · Est. 34 days remainingActive
Position 2$310/day ACH · Est. 18 days remainingActive
Combined daily obligation$790/day
As % of avg daily deposits42%
Stacking Risk: Moderate — 2 active positions. Max suggested new remittance: $450/day

NSF, Overdraft, and Cash Flow Stress Indicators

NSF frequency and overdraft patterns are more predictive of default risk than almost any other metric in MCA underwriting. AutomateMCA tracks these at the transaction level, not just as a monthly count, so your team can see whether the account is trending better or worse and whether stress is clustered around specific dates — like remittance pulls.

  • NSF count and returned item count by month
  • Overdraft days and negative-balance days per month
  • Low-balance days below configurable threshold
  • Correlation between NSF dates and existing ACH pull dates
  • Trend direction — improving, stable, or deteriorating
Risk Signals — Acme Plumbing LLC
Oct NSFs
2
Nov NSFs
1
Dec NSFs
4
3 of 4 Dec NSFs occurred within 1 day of an ACH debit — possible remittance stress
Trend: 2 prior positions nearing payoff. Dec stress may resolve at renewal.

Repayment Capacity and Holdback Modeling

Once the cashflow and obligation analysis is complete, AutomateMCA calculates the maximum daily remittance the merchant can support at your specified holdback rate — and works backward to a recommended advance amount and factor rate range given your buy rates.

This is not a decisioning engine. It is a calculation layer that does the math your underwriters would otherwise do manually, consistently, across every deal.

  • Max daily remittance based on true ADB and existing obligations
  • Advance amount range at your specified holdback percentage
  • Factor rate range based on risk tier (ADB, NSF, stacking score)
  • Estimated term length at the recommended remittance
  • Sensitivity output — how offer changes at 10%, 12%, 15% holdback
Offer Sizing — Acme Plumbing LLC
True ADB$12,060
Existing obligations$790/day
Available capacity$1,416/day
At 15% holdback$1,809/day
Suggested advance range$45,000 – $65,000
Factor rate range1.28 – 1.38

Underwriting review PDF

AutomateMCA generates a comprehensive PDF report with all analysis fields formatted for your underwriting team.

Underwriter PDF

One-page deal summary formatted for internal review and committee decisions. Includes cashflow table, risk flags, stacking summary, and offer sizing.