Can I Qualify for an MCA With a Tax Lien?
Sometimes. Many funders will look at a business with a tax lien if there's an approved payment plan and the payments are current. An open judgment is harder, because it can reach the same account the funder would debit. Tell us about any lien or judgment up front, with the plan or settlement paperwork. Funders find these in searches, and a surprise usually ends the review.
What do funders want to see with a tax lien?
- A copy of the payment plan or settlement.
- Proof the plan payments are current.
- The amount still owed.
- For judgments, whether it's satisfied or being paid.
Does a payment plan with the IRS help?
Yes. A signed installment agreement with a few on-time payments showing on your statements tells a funder the lien is under control. Bring the agreement and the latest notice with the balance on it. A lien with no plan and no payments is the version funders turn down.
Why does a tax lien matter to a funder?
A tax authority or judgment creditor can have a claim that comes ahead of the funder's. The funder needs to know its payment won't be interrupted by a levy on the same account. The UCC and lien searches funders run make these easy to find.
What does this look like with real numbers?
Say the IRS filed a lien for $18,000 and you've set up a payment plan paying $600 a month. Many funders will look at the file if you show the plan and a few on-time payments. Expect a smaller offer, and some funders will want part of the advance to go toward the lien. A lien with no plan is harder, because the IRS can levy the same bank account the funder debits. Read MCA taxes and bookkeeping.
What should you ask the funder?
- Do you fund with a tax lien on a payment plan?
- What paperwork do you need?
- Does a satisfied judgment still count?
- How does it change the amount?
Where can you check your own numbers?
The short version is in the Qualifying 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.