Business Checking Account: Meaning in a Merchant Cash Advance
A business checking account is a bank account opened in the name of a business, used for its deposits, payments and payroll. It keeps business money apart from the owner's personal accounts and is the account funders review during underwriting.
What does business checking account mean?
The bank opens it under the business's legal name and tax ID, and the owner or officers sign for it. Card processor deposits, customer payments and loan or advance proceeds land here. Rent, payroll, suppliers and any funder's debit go out from here. Some businesses keep more than one, like a separate payroll account.
Why does business checking account matter to your business?
A funder decides how much to offer mostly from what flows through this account. Deposits it can see count toward revenue. Money that runs through a personal account, a payment app or cash kept out of the bank doesn't count, even if it's real. A clean business account with steady deposits and few overdrafts is the strongest single thing you can bring to a funding conversation.
How do you keep the account funder-ready?
- Deposit all business income into the business account, not a personal one.
- Keep personal spending out of it.
- If you use two business accounts, send statements for both.
What if you switch banks?
Tell your funder before moving accounts. The ACH authorization points to a specific account, and closing it without notice returns the debit.
Where will you see it?
On the statements you send with an application, usually the last few months. In the ACH authorization, which names this account for the funder's debit. In a verification call, where the funder confirms the account is yours.
Which terms are related to business checking account?
- ACH authorization
- True revenue
- Deposit count
- NSF
- Verification call
- Can a non-citizen get a merchant cash advance for a US business?
The full list is in the glossary. Owners ask about this in What does an MCA payment look like on my bank statement?.
A term on your offer you don't recognize?
Send us the line and we'll tell you what it means. Call 877-FUND-654 with any question. We call you back, usually the same business day, and we always talk with you before we shop your file.