Spotting Existing Positions on a Statement
The merchant said they had one advance. The statement shows three. Here is how to find every obligation before you submit, and why disclosure is non-negotiable.
On the application, the merchant ticked the box for one existing advance. On the phone, they mentioned it was nearly paid off. Then you open the statements and count three different daily debits, two of them started in the last six weeks. Now you have a different file, and a different conversation to have.
Finding existing positions is one of the most important things a broker does before submission. It protects the merchant from taking on more than the business can carry, protects the funder from surprises, and protects your reputation on the panel. Every underwriter will look for these debits. You want to have found them first and already know the story behind each one.
Pre-flight summary
- Same-amount debits on a daily or weekly rhythm are the main sign of an existing position.
- Match recurring debits to earlier lump-sum credits to identify start dates and funded amounts.
- Ask the merchant to name each debit and supply current balance letters.
- Disclose every position; funders will find them anyway and total load is what matters.
- Re-check for new positions before funding, since files change mid-deal.
Leg 01What a position looks like in the debit column
Most merchant cash advances are repaid through scheduled debits from the merchant's operating account, typically daily on business days or weekly. That rhythm is your main clue. A business has plenty of recurring payments, but very few of them hit the same amount every single business day.
Term loans and lines of credit from banks and other lenders also show up as recurring debits, usually monthly. They count as obligations too, and a funder will want to know about them, even though they look different from an advance.
- Identical amounts debited every business day or on the same weekday
- Descriptors containing words such as capital, funding, advance, or a company name you do not recognise
- ACH debits that start shortly after a large lump-sum deposit
- Amounts that step down partway through the file, which may signal a modified schedule
Leg 02Reading descriptors when they are vague
Debit descriptors are often cryptic: a truncated company name, a processor code, a string of numbers. Some funders use a payment processor whose name appears instead of their own, and the same funder may appear with slightly different descriptors from month to month.
Do not try to decode every descriptor alone. Group debits by amount and timing first, then ask the merchant to name each one. Most merchants know exactly who is pulling from their account once you read the amount back to them. Write the merchant's answer next to each debit on the deal record.
Leg 03Working out frequency and remaining balance
Once you have identified a position, figure out its rhythm and how far along it is. Say you see $385 debited every business day starting March 4, after a $28,000 deposit labelled with a company name on March 1. That gives you the start date, the funded amount and the payment, which together give a rough sense of where the merchant is in the schedule.
Get the actual numbers from the merchant where you can, ideally a current balance letter from the provider. Your estimate is a starting point, not a payoff figure. Funders that consider consolidating or paying off an existing position will need accurate balances, and an estimate presented as fact can sink a deal at the last step.
- List every recurring debit with amount, frequency and first appearance.
- Match each to a lump-sum credit where one exists.
- Ask the merchant to confirm the provider for each debit.
- Request a current balance letter for each open position.
- Total the daily and weekly remittance burden across all positions.
- Record everything on the deal before any submission goes out.
Leg 04Why disclosure is not optional
Some merchants ask brokers to leave a position off, worried it will hurt their chances. Some brokers are tempted to let it slide. Do not. Funders read statements closely and will find the debits, at which point the file loses credibility and so do you. Many funding agreements also require the merchant to disclose existing obligations, and misrepresenting them can create serious problems for the merchant later.
More importantly, the total remittance load is what determines whether a new position is something the business can actually carry. A merchant with three daily debits adding up to a large share of daily deposits is already under pressure. Adding a fourth based on a file that showed only one is how businesses end up in trouble.
An undisclosed position is not hidden. It is just discovered later, by someone who now trusts the file less.
Leg 05Talking to the merchant about what you found
Approach it as a fact-finding conversation, not an accusation. Merchants often forget a small position, or think a nearly paid one does not count. Read out what you see, ask what each debit is, and explain why the funder needs the full picture.
If the combined load is already heavy, say so honestly. The best outcome for the merchant may be a smaller amount, a consolidation if a funder offers one that genuinely improves their position, or simply waiting until an existing advance finishes. Steering them toward an extra position they cannot carry is not a win for anyone.
Have this conversation on a recorded line where your process and the merchant's consent allow it. When the call runs through FundPilot's dialer it is logged to the deal, and the recording becomes a searchable transcript with a summary, so the merchant's own explanation of each debit is on file rather than in someone's memory.
Leg 06Keeping positions visible across the deal
Positions change while a deal is in progress. A merchant can take another advance between your first review and funding, which is one reason funders often re-check statements or request recent transaction history before funding.
In FundPilot, statement underwriting lists the existing positions it detects alongside deposits, balances and NSFs, with each one linked back to the statement page where it appears. You can confirm or correct each position, add the merchant's explanation, and the list stays on the deal for whoever touches it next, whether that is a manager reviewing the submission or a broker handling the renewal months later.
Questions from the floor
What if the merchant insists a debit is not a funding position?
Ask what it is and request something that shows it, such as an invoice, a lease agreement or a statement from the payee. Equipment leases, software subscriptions and supplier payment plans can look similar to remittances. If the merchant can document it, note that on the file. If they cannot, present the debit to the funder as unconfirmed rather than deciding on your own.
Does a nearly paid-off position still need to be disclosed?
Yes. It is still an obligation drawing from the account, and the funder will see it on the statements. Disclose it with its estimated remaining balance and expected payoff date, ideally supported by a balance letter. A position close to completion may matter less to the funder's decision, but that is their call to make with full information, not yours to make by leaving it out.
How do I calculate the total remittance burden?
Convert every position to a common period, usually a month. Multiply daily debits by the number of business days in the month and weekly debits by the number of weeks. Add any monthly loan payments. Compare that total to your true revenue estimate, not total deposits. The result gives you and the merchant a clear view of how much of their incoming cash is already spoken for.
General information only — not legal, tax or financial advice. Rules for telemarketing, texting, recording, disclosures and data retention vary and change; confirm current requirements with qualified counsel.
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