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Tovah

Glossary

Average daily balance

Average daily balance is the average amount of money in a bank account at the end of each day over a period.

In plain terms

An account that ends most days near zero looks riskier than one that holds a cushion, even with the same revenue.

Why it matters when you're getting funded

Underwriters use it to see how much buffer you carry. A steadier balance usually means better terms.

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