Underwriting
The Stack Test: 7 Signs You're About to Be Declined
Run this seven-point self-check on your own statements before you submit. It is the same test the desk runs.
May 8, 2025 · 6 min read
The seven signs
Any two of these in the last ninety days materially reduces approval odds; any four is usually a decline.
- Total daily debits above 20 percent of average daily deposits
- Three or more negative days in a single month
- A new position opened within the last 45 days
- Deposits declining month over month for three straight months
- Fewer than ten deposits per month at your revenue level
- Average daily balance under one week of fixed costs
- Payments to four or more funders visible in the statements
What to do if you fail it
Do not submit yet. Retire or reconcile a position, run sixty clean days, and rebuild balance. Submitting a failing file adds a decline to the record and often produces only the worst-priced offers.
If cash flow cannot support waiting, the conversation should be about restructuring existing positions rather than adding one.
Why the test exists
Every metric above correlates with default in portfolio data. The test is not gatekeeping for its own sake — funding a business into that profile harms the merchant first.