The Truth About Business Revenue and Funding

When it comes to securing business funding, one of the most common misconceptions owners face is what actually counts as business revenue. A bank statement showing $71,000 in deposits does not mean all $71,000 will be recognized by a lender as qualified business income. Understanding the distinction is critical to improving approval odds and accessing higher limits.

What Counts as Revenue:

• Credit and debit card payments processed through established merchant accounts

• Business checks

• Domestic U.S. wire transfers related to operations

• Cash deposits that can be verified with supporting records

What Sometimes Does Not Count as Revenue:

• Zelle, CashApp, or other peer-to-peer payments

• Personal domestic wires

• Cash deposits without a clear business trail

• W2 income unrelated to the business

What Does Not Count as Revenue:

• Transfers from personal or other business accounts

• Insurance payouts

• International wire transfers

• Loan draws or lines of credit

• Credits, reversals, or returned payments

• Gambling or investment proceeds

• Loans from friends or family

Too often, businesses unintentionally undermine their funding potential because of how deposits are structured, recorded, and reported.

Best Practices for Stronger Bank Statements:

• Establish a proper merchant account and move away from Stripe, PayPal, and similar processors

• Eliminate co-mingling of personal and business transactions

• Ensure all cash deposits can be tied to legitimate business activity with documentation

• Run payroll rather than transferring funds between accounts

• Avoid moving revenue from one business account to another

Lenders scrutinize bank statements as their primary underwriting tool. By tightening how revenue is received and recorded, you increase the likelihood that every legitimate dollar is counted—leading to stronger approvals and better terms.