92% Increase in Deal Size Using Applications with Bank Statements
How Business Backer transformed their funding model with pre-qualified applications
Executive Summary
Business Backer, a leading provider of small business funding solutions founded in 2011, partnered with Master MCA to increase their average deal size and improve profitability. By implementing our applications with bank statements strategy, they achieved a remarkable 92% increase in average deal size within just 6 months.
The implementation resulted in 78% improvement in approval efficiency, 63% reduction in underwriting time, and a 3.4x increase in monthly revenue. This case study explores how Business Backer transformed their funding model and significantly improved their bottom line using Master MCA's applications with bank statements.
Company Background
Founded in 2011, Business Backer has established itself as a respected provider of alternative funding solutions for small and medium-sized businesses. With 120 employees and headquarters in Cincinnati, Ohio, they offer merchant cash advances, working capital loans, and equipment financing to businesses across the United States.
Prior to partnering with Master MCA, Business Backer was struggling with smaller than desired average deal sizes, which limited their revenue growth and profitability. They needed a solution to increase their average funding amount while maintaining or improving their approval rates and underwriting efficiency.
Company Facts
- Founded: 2011
- Employees: 120
- Location: Cincinnati, OH
- Industry: Alternative Lending
- Products: MCAs, Working Capital
The Challenge
Before partnering with Master MCA, Business Backer faced several significant challenges that were limiting their growth and profitability:
Small Average Deal Size
Their average funding amount was only $18,500, significantly below their target and limiting revenue potential despite high application volume.
Inefficient Underwriting
Their underwriting team spent excessive time requesting and analyzing financial documentation, creating bottlenecks in the approval process.
Limited Financial Visibility
Without verified bank statements upfront, they couldn't accurately assess businesses' funding capacity, leading to conservative approval amounts.
High Customer Acquisition Costs
Small deal sizes meant their customer acquisition costs represented a higher percentage of deal value, reducing profitability.
The Solution
After evaluating several options to increase their average deal size, Business Backer chose Master MCA's applications with bank statements solution for its comprehensive financial data and pre-qualification capabilities. The implementation included:
Pre-Qualified Applications
Master MCA provided 300 applications monthly, each including completed funding applications with verified bank statements showing 6+ months of transaction history.
Financial Analysis Tools
We provided specialized tools for analyzing bank statement data to identify businesses that could qualify for larger funding amounts based on cash flow patterns.
Underwriting Process Redesign
We worked with Business Backer to redesign their underwriting process to leverage the pre-verified financial data, significantly reducing decision time.
Funding Capacity Optimization
Developed algorithms to identify optimal funding amounts based on bank statement analysis, allowing for larger approvals while maintaining risk parameters.
Implementation Timeline
Initial Assessment & Strategy
Analyzed existing deal flow and developed implementation plan for applications with bank statements.
Team Training & Process Development
Trained underwriting team on evaluating bank statement data and developed new funding approval process.
Initial Implementation
Began receiving applications with bank statements and implemented new underwriting procedures.
Process Refinement
Optimized approval criteria and streamlined verification procedures for faster processing.
Volume Scaling
Increased application volume and expanded underwriting team to handle growth.
Full Optimization
Achieved 92% increase in average deal size with fully optimized processes and team structure.
The Results
Within 6 months of implementing Master MCA's applications with bank statements, Business Backer achieved remarkable results that transformed their business:
Deal Size Analysis
Before Implementation
- Average deal size: $18,500
- Underwriting time: 3.2 days
- Approval rate: 42%
- Monthly funding volume: $5.2M
- Customer retention: 58%
After Implementation
- Average deal size: $35,520
- Underwriting time: 1.2 days
- Approval rate: 68%
- Monthly funding volume: $17.8M
- Customer retention: 82%
Future Plans
Following their success with Master MCA's applications with bank statements, Business Backer has developed an ambitious growth strategy:
Increase Application Volume
Business Backer plans to increase their monthly volume of applications with bank statements by 75% in the next quarter to support their expanding underwriting team.
New Product Development
They're developing new funding products specifically designed for businesses with strong bank statement performance, including longer-term options.
Advanced Analytics
Investing in advanced analytics tools to further optimize funding amounts based on bank statement data and historical performance.
Geographic Expansion
Leveraging their improved profitability to expand into new geographic markets and industry verticals previously considered too competitive.
Get Similar Results
Want to achieve the same impressive deal size increase and revenue growth as Business Backer? Get started with our applications with bank statements today.
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