The 5-step process from application to funded
An MCA is the fastest funding product in the small business market. Most files go from initial submission to money wired in 24 to 48 hours. Here is exactly what happens at each step, and how long it takes.
Submit application
One-page form: business name, monthly revenue, time in business, FICO range, requested amount. Soft pull only.
Send bank statements
Upload the last 3 to 6 months of business bank statements as PDFs (download from online banking). We review and pre-qualify.
Receive offers
We submit to 3 to 7 MCA lenders most likely to compete. Offers come back with advance amount, factor rate, term, and daily payment.
Pick and sign
We walk you through the strongest 2 to 3 offers in plain English. You pick. Electronic signature on the funding agreement.
Wire arrives
Lender wires the advance to your business bank account, typically same day after signing if before 3 PM ET. ACH debits begin the next business day.
What lenders actually look at
MCA underwriting is different from bank underwriting. Banks look at personal credit and tax-return cash flow. MCA lenders look at the bank statement. Here is what they check on every file, in roughly the order they check it:
- Average monthly revenue (last 3 to 6 months). Floor is $10K. Sweet spot starts at $20K. Best rates open at $50K+.
- Number of deposits per month. 5+ separate deposits per month signals consistent revenue. 1 to 2 large deposits signals lumpy revenue and downgrades the offer.
- Daily ending balance trend. Average daily balance above $1,000 to $3,000 is the unspoken floor. Negative balances on more than 3 days in 90 disqualifies most lenders.
- NSF and overdraft count. Three or fewer in 90 days is the target. Above five and most lenders pass.
- Existing daily ACH debits. If lenders see existing MCA daily payments on your bank statements, they assume you are stacked and price accordingly or decline. More on stacking detection.
- Personal FICO. 500 is workable through specialty lenders. 650+ opens the best factor rates.
- Industry. Some lenders restrict cannabis, adult, debt collection, payday lending. Most accept restaurants, retail, trucking, contractors, salons, and services.
- Time in business. 3 months minimum at the most aggressive lenders. 12+ months opens better terms.
How to get the best factor rate
Factor rates on MCAs run 1.20 to 1.49. Where you land in that range is decided by your file plus how many lenders compete for it. Four levers move the rate down:
1. Submit through a broker who shops the file
One lender quoting your file in isolation has no pricing pressure. Five lenders quoting your file in parallel know they have to compete or lose the deal. The factor rate on a competitive submission is usually 0.05 to 0.10 lower than the same file going to a single lender. Here is how our broker process works.
2. Clean up the bank statements 60 to 90 days before applying
If your last 90 days include 4+ NSFs, three negative ending balances, or a 30 percent revenue drop, fix those first. Run all revenue through the business account, avoid overdrafts, and resubmit when the trailing 90 looks clean. Same file, cleaner statements, materially better rate.
3. Be honest about existing positions
Lenders find existing MCAs on the bank statements anyway. Disclosing them upfront lets us route the file to lenders comfortable with the situation rather than wasting cycles on lenders who will decline at the underwriting stage. Hidden positions discovered at underwriting blow up offers and cost you a week.
4. Time the application to the strongest 90-day window
If your business is seasonal, apply at the end of your strong quarter, not the start of the slow quarter. Underwriters see the most recent 3 to 6 months; if those align with your peak season, your file looks materially stronger.
Common reasons applications get delayed
- Bank statements not downloaded directly from the bank. Screenshots and scanned printouts often get flagged for verification. Use the PDF download from your bank's online portal.
- Owner missing from documents. If you have a 50/50 partner, both signatures are required at underwriting. Missing co-owner can add 24 hours.
- Recent change of bank account. If you switched business banks in the last 60 days, lenders may want both old and new statements.
- Tax lien discovered at underwriting. Disclose upfront. We can match you to lenders comfortable with documented payment plans rather than wasting time on lenders who decline at the search stage.
- Application submitted on Friday after 2 PM. Underwriters work weekdays. Friday-afternoon files often slip to Monday for offers.
What happens after you fund
Daily or weekly ACH debits begin the next business day after funding. The amount is fixed (decided at the offer stage) and runs for the agreed term (typically 4 to 24 months). When the total payback amount is repaid, the position closes automatically and the daily debits stop.
If your revenue dips and you can't cover the daily payment, contact us before missing the debit. Most lenders will discuss a temporary holdback reduction if you reach out proactively. Missing the debit without warning triggers NSF fees from your bank, late fees from the lender, and in extreme cases UCC enforcement against your receivables. See what happens if you can't pay your MCA for the full breakdown.
About 70 percent of MCA borrowers renew at the end of their term. Renewal typically happens at 50 percent paid down or later; you get the difference between the new advance and the remaining balance as net cash. If you have 2+ active positions, consider consolidation instead of another renewal.