Key takeaways
- MCA structures vary by provider and contract.
- Revenue, bank activity and existing obligations matter.
- Compare total payback and payment timing, not just approval amount.
- Approval, pricing and funding speed are not guaranteed.
Monthly business revenue
Revenue is central to MCA underwriting because repayment is tied to business cash flow or future receivables. Providers often look for recurring deposits rather than one unusually strong month.
Time in business
A longer operating history provides more evidence about stability and seasonality. Minimums vary by provider.
Business bank statements
Recent complete bank statements show deposits, average balances, overdrafts, NSFs and recurring obligations.
Existing obligations
Existing MCAs, loans, tax payments and recurring debits affect available cash flow and should be disclosed accurately.
Credit and background
Some MCA providers place greater weight on revenue than banks do, but personal or business credit and public records can still affect availability or pricing.
Industry and seasonality
Provider appetite can change based on volatility, chargebacks, receivable cycles and seasonal patterns.
Documentation quality
Legal name, DBA, address, ownership and bank information should match supporting records.
Questions to ask before moving forward
- What is the exact net amount deposited?
- What is the exact total payback?
- How often is money withdrawn?
- What happens if revenue falls?
- What are payoff, UCC and default terms?