Working capital and MCA underwriting from bank statements.
Working capital and merchant cash advance underwriting judges a business on its recent trading, which mostly means reading its bank statements. Kita reads those statements and checks them for tampering, spreads the cash flow, tests the file against your credit policy and drafts a cited memo for your underwriter to sign.
What does working capital underwriting involve?
It means judging whether a business's trading cash flow can carry a revolving facility or a short-term line. Bank statements carry most of the weight, and tax returns and financials join them as the amounts grow.
Business bank statements
Several recent months from every operating account, from national banks, regional banks and credit unions.
Deposits and revenue
Monthly deposits, how they trend, and how much is real revenue rather than transfers or loan proceeds.
Balances
The average daily balance, and how often the account runs close to zero or below it.
Existing obligations
Recurring loan and advance payments already leaving the account.
Tax returns and financials
Business returns, P&L statements and balance sheets on larger lines.
Owners and ownership
Identity checks on the owners, company registry checks and the ownership structure behind the business.
How does Kita underwrite a working capital file?
Kita runs each file through five steps, from collecting the statements to a cited memo against your policy, and your underwriter decides.
Collect the file
The AI Credit Officer asks the borrower for the statements and documents your policy requires, over WhatsApp, SMS or email, checks each upload as it lands and chases what is missing, such as a month that is not in the file.
Check every document for fraud
Kita Capture reads business bank statements in any format and checks them for metadata edits, pixel-level edits and forgery patterns. It catches contradictions across the file, such as revenue on the application that the deposits do not support.
Spread the financials and read the risk
Bank data, statements and ledgers become a normalized period-over-period spread, with debt service, margin and trend computed in one pass. Kita then reads what the figures alone do not show, such as one customer carrying most of the revenue.
Draft the memo against your policy
The file is held against your encoded credit policy, and anything outside it is flagged, never waved through. The AI Underwriter drafts the credit memo with every figure cited to the document line it came from.
Your underwriter decides
Your underwriter reviews work that is already done and signs the decision. The application, documents, checks and decision stay in one system of record, or go into the loan origination system you already use through the API.
What is MCA underwriting, and how is it different?
MCA underwriting is the review behind a merchant cash advance, where a provider buys a share of a business's future receivables and collects it from its daily or weekly takings. It leans on bank statements even more than a working capital loan does, because the repayments come straight out of the account.
Merchant cash advance
A purchase of future receivables, repaid through a share of card sales or a fixed daily or weekly debit, rather than a loan with an interest rate and a term.
Revolving line of credit
A facility the business draws and repays as it needs, sized to its trading volume and reviewed at set intervals.
Average daily balance
The mean end-of-day balance over the statement period. Underwriters read it with the lowest balances and the days spent overdrawn.
Overdrafts and NSFs
Overdrawn days and items returned for non-sufficient funds, which show how often the business runs short of cash.
Stacking
Taking a new advance while earlier ones are still being repaid. It shows up as several recurring debits to different funders.
Seasonality
Revenue that rises and falls through the year, which changes how much a business can repay in a slow month.
How accurately a system reads bank statements matters most in this segment. Kita published a benchmark of nine AI systems on real lending documents.
Who makes the credit decision?
Your underwriter does. Kita drafts and explains the analysis, holds the file against your credit policy and records every check, and a person on your team signs the decision.
Every figure links to the document line that produced it.
Your thresholds and required checks, encoded once, applied always.
The AI drafts and explains. A human makes every decision.
Every repayment and default sharpens the next recommendation.
API-first. Integrates into your existing LOS, credit engine or custom workflow.
SOC 2 Type II compliant and ISO 27001 certified.
Kita underwrites other loan types with the same method and your policy for each product: SBA 7(a) and 504 underwriting, Commercial real estate underwriting, Equipment finance underwriting, and the rest on the loan underwriting software page.