BUSINESS FINANCE GLOSSARY
Bank Statement
Bank-Statement Financing
Financing evaluated substantially using deposit and bank-activity history.
What does Bank Statement mean?
Financing evaluated substantially using deposit and bank-activity history. Professionals may calculate, document or apply this concept differently depending on the transaction, accounting method, lender policy and governing documents. Borrowers should confirm the precise definition used in any term sheet or agreement.
Bank Statement in context
A lender analyzes twelve months of business bank statements to estimate cash flow.
Why it matters in financing
Bank Statement can influence how a lender, investor or advisor evaluates risk, pricing, structure, repayment capacity or transaction economics. It should be considered together with the complete financial picture rather than used alone.
Related business finance terms
Educational information only. This definition is general, may not match a particular lender or contract, and is not financial, accounting, tax or legal advice.