Can I Get an MCA After a Bankruptcy?
Sometimes. Most funders won't fund while a bankruptcy case is still open. After it's discharged or dismissed, some funders will look at the business if deposits have been steady since. Expect fewer offers and a higher cost for a while. Tell us about the bankruptcy up front. A funder that finds it on its own will usually stop reading the file.
What do funders look for after a bankruptcy?
- The case is closed: discharged or dismissed.
- Months of steady deposits since.
- No new advances or returned payments.
- A clear explanation of what happened.
Does the type of bankruptcy matter?
Yes. A discharged Chapter 7 for a business that closed reads differently from a Chapter 11 or 13 that is still open. Funders want the case closed or discharged, the discharge papers in hand, and clean deposits since then. An open case is a no from almost every funder.
What if you're thinking about filing?
That's a different question. See what happens to an MCA in bankruptcy, and talk to a bankruptcy lawyer before you take new funding.
What does this look like with real numbers?
Say your business filed a case that closed recently, and since then you've had six months of steady deposits around $40,000 a month with no overdrafts. Some funders will look at that file, often with a smaller first advance and a shorter term than you'd get without the filing. If you pay that one on time, the next offer usually improves. Tell us about the case up front. Funders will find it, and a file that hides it gets declined.
Bring the discharge or dismissal papers, the case number, and a short note on what caused it and what has changed since. That context helps a funder read the statements that follow.
What should you ask the funder?
- Do you fund after a discharged bankruptcy?
- How long since discharge do you want?
- Will a dismissed case count against me?
- What documents do you want about the case?
Where can you check your own numbers?
The short version is in the Credit FAQ. To check the numbers on your own advance, use the funder fit checker.
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.