Can I Cancel an MCA After I Sign?
Usually only before the money arrives, and only if the funder agrees. There's no general cooling-off period for business funding. After funding, cancelling usually means paying it back, and some funders still charge part of their fee. Read the contract before you sign and ask in writing whether you can cancel and on what terms.
Does it matter whether the money has arrived?
| When | What's usually possible |
|---|---|
| After signing, before funding | Ask the funder to cancel. Many will, sometimes with a fee. |
| After funding | Return the money. The funder decides whether to waive any fee. |
| Weeks later | It's an early payoff. |
How do you protect yourself before you sign?
Connecticut gives you time to read: a specific offer can't be revoked or changed before midnight of the third day, except for underwriting reasons. Elsewhere, ask for time. Read the early payoff guide for what happens if you pay back quickly.
What if the terms look wrong the day after you sign?
Call the funder and your broker before the wire goes out, and put the request in writing the same day. Before funding, a funder can decline to fund and void the deal. After the money lands, an early payoff is the clean way out, and the contract sets what that costs.
What does this look like with real numbers?
Say you sign on Monday, the money lands Tuesday, and on Wednesday you find a cheaper offer. There's usually no cooling-off period, so the options are to keep the advance or pay it off. If you pay off $50,000 the next day on a $67,500 payback with no early payoff discount, you'd still owe the full $67,500. Some funders will waive part of the fee if you ask right away, so ask in writing before anything is debited.
What should you ask the funder?
- Can I cancel before funding, and is there a fee?
- If I return the money in a week, what do I owe?
- Is there an early payoff discount?
- Can I have the contract a day before signing?
Where can you check your own numbers?
The short version is in the Offers FAQ. To check the numbers on your own advance, use the early payoff calculator.
Where do these facts come from?
Want a second look at your advance?
Call 877-FUND-654 with any question. We call you back, usually the same business day, and we always talk with you before we shop your file.