Documents Needed for an MCA: What to Send and Why
Most MCA files start with recent business bank statements. Owner ID, a voided check and entity papers come next, and card-heavy shops may add processor statements. Each one answers a single question for the funder.
Send clean copies of each, and label anything unusual before it goes out.
Which documents does an MCA file need?
Here is the rule of thumb: bank statements size the offer, and everything else confirms who you are and where the money goes. A shop with $80,000 in steady monthly deposits is judged mainly on those deposits; the ID and papers simply let the deal close.
Below, each document gets its own short note, followed by a worked example of how a funder turns statements into a dollar figure. For the questions that come after the documents, see how to read an MCA offer.
How do statements turn into an offer size?
Picture a cafe whose last three statements show $90,000, $80,000 and $85,000 in deposits. The first month includes a $10,000 transfer from the owner's savings, which a funder will strip out. That leaves $80,000, $80,000 and $85,000 of actual sales, an average near $81,667 a month instead of $85,000.
| Case | Month 1 | Month 2 | Month 3 | Average counted |
|---|---|---|---|---|
| As deposited | $90,000 | $80,000 | $85,000 | $85,000 |
| Owner transfer removed | $80,000 | $80,000 | $85,000 | about $81,667 |
| Month 3 drops 40% | $80,000 | $80,000 | $51,000 | about $70,333 |
Now suppose the third month falls 40%, to $51,000. The average a funder counts slides to about $70,333, and any offer is built on that smaller base. This is why the month-to-date statement matters: it tells the funder which way the line is heading. Sample figures only, built to show the math.
What does each document show a funder?
Business bank statements
These carry the most weight. A funder reads the last few full months for money coming in, money going out, daily balances and any days the account dipped below zero. Download the PDFs straight from your bank so every page and total is intact.
This month's activity so far
If the month is half over, a funder will usually want what has posted since the last statement closed. It shows whether the recent trend matches the older months.
Owner ID
A clear, current photo ID for each owner who signs. The name should match the one you apply under and the entity papers.
A voided check or bank letter
This confirms the account that will receive the deposit and, in most contracts, the account that collections come from.
Entity papers and tax ID
Articles of organization or incorporation and the business tax ID show who owns the company and that it legally exists under the name on the file.
Processor statements
Shops that take mostly cards may be asked for these. They show gross card sales before fees and chargebacks, which helps a funder line up card volume against bank deposits.
A list of open advances
Name each funder, the balance left and the payment. The debits already show on your statements, so writing them out up front saves a round of questions.
Which statement details raise questions?
- Transfers between your own accounts.
- Days when the balance went below zero.
- Payments that bounced or were returned.
- Daily or weekly debits from an earlier advance.
Each one changes the dollar picture. If a month shows $85,000 deposited but $10,000 of it came from the owner, the funder counts $75,000. Add a one-line note next to anything like that so nobody has to guess.
The same goes for a slow stretch you already know about. If a supplier delay cut one month to $51,000, say so and say when it ended. A funder reading three numbers with no story behind them will assume the lowest one is the new normal. A two-sentence note can change how that month is weighed, and it costs you nothing to write.
What happens to your documents after you send them?
Most applications include an authorization that lets the broker share your file with funders and lets those funders review your accounts. Read who receives the file, whether it goes to one funder or several, and how long they may keep it.
If the wording is broad, ask for it in plain terms before you sign. You can also ask that statements go only to funders whose offers you want to see. A careful broker will tell you where each copy went.
What should you ask before sending documents?
- Which months of statements are needed, and in what format?
- Is month-to-date activity needed too?
- Who will see my file, and how many funders?
- Do processor statements matter for my type of shop?
- How should I note owner transfers or a one-time deposit?
- Will anyone contact my bank directly?
- What happens to my documents if I decline every offer?
Write the answers down. If you renew later, the same list applies, and our renewal documents answer covers what changes.
Takeaway
Bank statements size an MCA offer, and the other documents confirm who you are and where the money moves. Clean, labeled statements give the funder an accurate dollar figure to work from.
Gather the list above, note anything unusual, and check the payment calculator to see what a payment would take from your deposits. When the file is ready, send one application or call (877) 386-3654.
Document questions
How many months of statements does an MCA funder want?
Usually the last few full months, plus whatever has posted this month. Ask each funder for its exact number before you gather the PDFs.
Do funders look at personal bank statements?
Mostly they read the business account. Some ask for personal statements when the business account is new or the owner pays business bills personally.
Can I explain an unusual month?
Yes. A short note about a lost contract, a closure or a one-time deposit helps the funder read the month the way you lived it.
Do I need tax returns?
Many advance files close without them, though larger requests or newer businesses may be asked for returns. Ask up front so it doesn't hold up the file.
Should I send extra documents?
Send what is asked for, cleanly. Extra papers that don't answer a question can slow review instead of helping it.
Sources
- The Federal Trade Commission Tells owners to ask questions before turning over confidential financial information (business blog). That applies to every statement you send for merchant cash advance underwriting.
Afterfirst is not a funder; all offers are subject to funder underwriting.
Send one file.
See what fits.
Call 877-FUND-654 with questions.