Plain-language definitions for MCA underwriting.

Self-transfers between a merchant's own accounts that inflate deposit volume.

The portion of gross deposits that represents real customer revenue.

Reading bank statements to assess revenue, cash flow, and fraud risk for underwriting.

A statistical test on first-digit distributions, used to detect fabricated transactions.

Historical practice of bouncing checks between accounts to exploit float; predecessor of account kiting.

Flows where money moves out and back through one or more counterparties, inflating apparent revenue.

The long-horizon version of circular fraud, evading short-window detectors.

The multiplier applied to a merchant cash advance amount to determine total repayment.

The portion of a merchant's receivables withheld toward MCA repayment.

Intermediary that originates merchant cash advance applications and routes them to funders.

A merchant taking multiple cash advances from different funders within a short window.

The portion of funded merchant cash advances that fail to repay in full.

Financing that purchases a portion of a merchant's future receivables in exchange for an upfront sum.

A per-transaction measure of how likely a deposit is to represent real customer revenue.

Debit-credit pairs of similar amount with the same counterparty, recycling money.

A fabricated business identity used to obtain financing.

The analysis layer that sits between bank-statement parsers and the underwriter.

Inflating account balance at statement-period boundaries to game underwriting metrics.