What Do Lenders Look for in Business Bank Statements for Equipment Financing?

What Do Lenders Look for in Business Bank Statements for Equipment Financing?

Why Business Bank Statements Matter

When applying for equipment financing, many business owners focus on credit scores or time in business. But another vital element—often overlooked—is your business checking account. Why? Because it tells the real story of how your business handles money, in real time.

1. Consistent Cash Flow

Lenders want to see that your business has steady inflows that can support the repayment of a loan. They’ll look for:

• Regular deposits from business operations
• Stable or growing revenue trends
• Seasonal cash flow patterns, if relevant

Why it matters: Steady revenue suggests your business can comfortably handle a new monthly payment.

2. Healthy Average Daily Balance

Daily balances tell lenders how well you manage your cash. Peaks and valleys are less important than overall stability.

• Maintain balances above zero
• Build a cushion to withstand slow-paying customers or surprise expenses

Red flag: Frequent low balances or negative days.

3. No (or Few) NSF or Overdraft Charges

NSF (Non-Sufficient Funds) and overdraft fees are red flags for lenders. A clean record builds confidence that you can manage obligations.

Best practice: Check your last 3 months and clear up any patterns before applying.

4. Evidence of Active Operations

Your bank activity should show signs of life—vendor payments, deposits from customers, payroll, and regular business expenses.

Tip: Submit statements from your most active account, not a rarely used reserve account.

5. Debt Servicing Capacity

Lenders want to know if you have room for another payment. They analyze what’s left after rent, payroll, and existing loan payments.

If your business runs with a consistent surplus, you’re in good shape.

Prepare Now, Succeed Later

If you’re planning to finance equipment soon, review your recent bank statements with these points in mind. A clean, consistent financial history makes all the difference.

Need Help Reviewing Your Business Bank Statements?

At SLS Financial, we’ve been helping business owners grow for over 30 years. We can pre-review your bank activity and provide feedback before you even apply.

👉 Let’s talk about your next equipment purchase.