Can I Change Bank Accounts During an MCA?
Yes, but only with the funder's written agreement first. Your contract almost always names the account your sales go into and the debit comes from. Moving deposits to a new account without telling the funder is one of the most common default triggers. Ask first, sign the new debit authorization, and keep both accounts open until the first debit clears from the new one.
What are the steps to switch bank accounts?
- Tell the funder why you're switching and when.
- Sign a new ACH authorization for the new account.
- Get written confirmation of the date the debit moves.
- Keep money in the old account until then.
- Check that the first new debit cleared, then close the old account.
How long does the switch take?
Plan on a week or more. The funder needs the new account details, a signed authorization and often a test debit before it moves the payment. Keep the old account open and funded until the first payment clears from the new one, so nothing bounces in the gap.
Why does the funder care which account you use?
The funder bought a share of your sales. The account is how it sees them. A new account it can't see looks like diverted sales, even when it isn't. The personal guarantee usually covers this exact covenant.
What does this look like with real numbers?
Say your bank is closing your account in two weeks. You open the new account, email the funder the next day with the new bank letter, and sign a new ACH authorization. The funder switches the debit, and you keep the old account open with enough money to cover debits until the switch shows on a statement. Skipping any of those steps can look like moving deposits to avoid the funder, which most contracts treat as a default.
What should you ask the funder?
- What do you need from me to move the debit?
- When will the first debit hit the new account?
- Do you need statements from the new account?
- Is there a fee for the change?
Where can you check your own numbers?
The short version is in the Repayment FAQ. To check the numbers on your own advance, use the MCA payment calculator.
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.