Question 1

Does applying affect my credit?

Accepted Answer

Applying with us doesn't. Our application never asks for your Social Security number or date of birth, so it can't run a credit check. A funder may review the owner's credit before it makes an offer, and each one runs its own process. Ask the funder how its review works, when it happens, and whether it's a soft or a hard check.

Question 2

What credit score do I need for an MCA?

Accepted Answer

There's no single minimum. Funders weigh your deposits more than your score, and each sets its own credit policy. A lower score can mean a smaller amount or a higher price rather than a flat no. Ask the funder how credit figures into its decision, and be wary of anyone who names a cutoff before reading your file.

Question 3

Can I get an MCA with bad credit?

Accepted Answer

Yes, it's possible. A low score doesn't rule a file out, because some funders put more weight on revenue than on credit. Expect a higher price, a smaller amount or a shorter term. Steady deposits, few overdrafts and no hidden advances help most. Our bad credit guide walks through what funders check and what you can fix first.

Question 4

Do MCAs show up on my credit report or build credit?

Accepted Answer

Many MCA funders don't report your payments to the business or personal credit bureaus, so paying on time usually won't build credit. Missed payments can still hurt, because a default can lead to collections or a court judgment, and those can show up. Ask the funder what it reports. If building credit is the goal, a line of credit or a card may suit you better.

Question 5

Is an MCA secured or unsecured?

Accepted Answer

It's usually not secured by one specific asset like a building or a truck. Most funders file a UCC-1 lien on your business receivables, and many contracts give them a claim on other business assets too if you default. Most also ask the owner to sign a personal promise. Read the security and guarantee sections before you sign.

Question 6

Will I have to sign a personal guarantee?

Accepted Answer

Most MCA contracts ask the owner to sign a performance promise, sometimes called a validity guarantee. It usually covers things like not diverting sales, not switching bank accounts and telling the truth in your application, rather than promising the sales themselves. Some contracts go further. Read what yours covers, and have a lawyer read it if you're unsure.

Question 7

Do I have to give my Social Security number?

Accepted Answer

Not to us. Our application never asks for your Social Security number or date of birth. A funder may ask for it later, through its own secure process, to confirm your identity and run its credit review before an offer. Never send a Social Security number, a bank login or an account number by email, to us or to anyone else.

Question 8

What is a UCC filing on an MCA?

Accepted Answer

A UCC-1 is a public notice a funder files with the state to record its claim on your receivables. Other funders and lenders see it when they check your business, so an open advance is no secret. It should be released with a UCC-3 termination once the advance is paid in full, so ask for that in writing when you finish.

Question 9

Can I get an MCA after a bankruptcy?

Accepted Answer

Some funders will look at a file after a bankruptcy, usually once it's discharged and the business has steady deposits since. An open bankruptcy case is much harder to place. Tell us the status up front so your file goes only to funders who take it. Hiding it wastes time, because funders check public records.

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