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Small Business Deposit Balances Stabilize After 18-Month Decline

Median SMB operating account balance in our origination cohort ticked up 4% QoQ — the first sustained reversal of the 2023–2025 cash burn.

By Summit Underwriting DeskNew York · London

After eighteen months of declining deposit balances across our underwriting cohort, Q2 2026 showed the first quarter-over-quarter increase since late 2023. Median operating-account ADB rose 4% QoQ to $38,200.

The reversal correlates with improving SMB revenue trends and a meaningful drop in MCA daily-debit penetration. Operators are deleveraging short-duration paper and reaccumulating cash buffers.

Underwriting implications

Files we're seeing today have materially cleaner average daily balance profiles than mid-2024. Negative-day frequency dropped from 4.1 to 2.3 days/90 across A-paper applicants. This is the strongest leading indicator we've seen for compressed default rates in 2027 vintages.

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