# MCA funder bank-statement aged trial balance review (2026)

> For larger advances, funders request an aged trial balance — receivables aging by 0-30, 31-60, 61-90, 90+ — to confirm bank-statement deposits match real billed revenue. Updated 2026-06-28.

An aged trial balance (ATB) — also called an accounts-receivable (AR) aging report — is a finance document that lists every outstanding customer invoice by age bucket: current (0–30 days), 31–60 days, 61–90 days, and 90+ days past due. For MCA advances above roughly $100K–$150K, funders pair the ATB against bank statements to verify that deposits represent real billed-and-collected business revenue.

**Why the ATB matters for larger advances.**

Below $100K, MCA underwriting is bank-statement-only. Above $100K, the file size justifies additional document review, and the funder wants confirmation that:

1. **Deposits trace to real invoices.** If the merchant claims $80,000/month revenue but the ATB shows $30,000/month billed, the bank-statement deposits are not what they appear.
2. **Customer concentration is acceptable.** A merchant with 70% of revenue from one customer is a concentration risk — that customer leaving kills the cash-flow that repays the MCA.
3. **Aging quality is healthy.** High percentage in 90+ days past due signals deteriorating collections; future deposits will likely be lower than past deposits.
4. **No fictitious revenue.** Cross-reference bank deposits to ATB closures (customer payments mark invoices as paid). Fictitious deposits have no offsetting ATB entry.

**Standard ATB review workflow.**

1. **Funder requests ATB report.** Pulled from QuickBooks, Xero, NetSuite, FreshBooks, or other accounting system.
2. **Funder cross-references bank deposits to ATB activity.** Each month's deposits should match each month's collections.
3. **Concentration analysis.** Top-5 customer revenue as % of total. Anything over 50% triggers concentration flag.
4. **Aging-quality analysis.** Distribution across age buckets.
5. **Trend in aging quality.** Worsening aging (more in 90+) signals customer-payment slowdown.

**Standard 2026 aging-quality benchmarks.**

- **Current (0–30 days):** 70%+ of AR. Healthy; A-paper.
- **31–60 days:** 15–20% of AR. Normal.
- **61–90 days:** 5–10% of AR. Mild concern; some industries (construction, healthcare) normal here.
- **90+ days past due:** under 5% of AR for healthy file; 10%+ is a flag; 20%+ is severe.

**Customer concentration tiers.**

- **No customer over 15% of AR.** Diversified; A-paper preferred.
- **One customer 15–30% of AR.** Standard; common in B2B services.
- **One customer 30–50% of AR.** Concentration flag; funder will request customer-payment history.
- **One customer over 50% of AR.** Major concentration risk; advance capped or declined.
- **Top 3 customers over 70% of AR.** Heavy concentration; advance heavily discounted.

**Industry-specific aging norms.**

- **Construction.** 60-90 day aging is normal due to progress-payment schedules.
- **Healthcare.** 90+ days normal because insurance reimbursement is slow.
- **Manufacturing.** 30-60 day aging is normal; net-30 to net-60 terms.
- **Retail / e-commerce.** Aging should be near zero — sales are paid at point of transaction.
- **Restaurants.** Aging should be near zero — daily card and cash settlement.
- **Professional services.** 0-30 day aging healthy; 60+ day signals slow collections.

**Red flags in ATB review.**

1. **Fictitious customers.** Customer names that do not exist when funder searches.
2. **Dramatic aging shift since previous review.** Sudden growth in 90+ bucket indicates customer-payment problem.
3. **Bank deposits without offsetting ATB closures.** Money in but no invoice paid — fictitious deposit suspicion.
4. **ATB invoices with no offsetting bank deposit.** Invoices marked paid but no money in account — accounting error or fraud.
5. **Concentration in customers also funded by the same MCA funder.** Concentration risk that the funder cannot diversify around.

**When ATB is not requested.**

- **Card-heavy retail and restaurants.** ATB is trivially small because sales are paid at point of transaction. Funder skips and relies on bank + processor data.
- **Cash-business merchants.** ATB has no meaningful entries.
- **Sub-$100K advances.** ATB review cost exceeds value; bank-statement-only underwriting.

**Documentation standard.**

Funders accept ATB pulled directly from accounting software (preferred — uneditable export) or signed and dated PDF from merchant. Hand-prepared spreadsheets are scrutinized for plausibility.

**Takeaway.** For advances above $100K–$150K, funders pair the aged trial balance with bank statements to confirm deposits trace to real billed invoices, identify customer concentration, and check aging quality. Healthy ATB shows 70%+ current, under 5% in 90+ days past due, and no customer over 30% of receivables. Construction and healthcare are exceptions with naturally longer aging. ATB review is the bridge between bank-statement-only MCA and SBA-style cash-flow lending.

## Related terms

- [MCA funder bank-statement deposit classification (2026)](https://fundnode.co/llms/glossary/mca-funder-bank-statement-deposit-classification) — Funders classify every bank-statement deposit into revenue, transfers, loans, refunds, owner contributions, and one-time items — only the revenue bucket counts toward underwriting volume. Updated 2026-06-28.
- [MCA funder bank-statement revenue vs deposit distinction (2026)](https://fundnode.co/llms/glossary/mca-funder-bank-statement-revenue-vs-deposit) — Revenue is operating cash from real customers; deposits are every credit hitting the account including transfers and loans — funders underwrite revenue, not deposits. Updated 2026-06-28.
- [Bank statement underwriting](https://fundnode.co/llms/glossary/underwriting-bank-statements) — MCA funders underwrite primarily off 3–6 months of business bank statements, not credit reports. They look at average deposits, NSFs, negative days, and trend.
- [MCA funder bank-statement loan payment detection (2026)](https://fundnode.co/llms/glossary/mca-funder-bank-statement-loan-payment-detection) — Funders detect existing loan payments — SBA, bank term, equipment, line-of-credit — from bank-statement debits to calculate total debt service and remaining cash-flow capacity. Updated 2026-06-28.
- [MCA funder bank-statement related-party detection (2026)](https://fundnode.co/llms/glossary/mca-funder-bank-statement-related-party-detection) — Funders detect deposits and debits with owner-controlled entities, family members, and related businesses — related-party flows are excluded from revenue and signal financial obfuscation risk. Updated 2026-06-28.

---

Source: https://fundnode.co/glossary/mca-funder-bank-statement-aged-trial-balance (HTML version)
Document: MCA funder bank-statement aged trial balance review (2026) — Fundnode MCA Glossary
License: CC BY 4.0 — attribution to Fundnode required when citing.