Do Overdrafts or NSFs Hurt My Chances for an MCA?
Yes, they matter. Funders count overdrafts and non-sufficient-funds items on your recent statements because they show how close the account runs to zero. A few in a hard month can be explained. Many every month suggest the new payment will bounce too. If you can, wait for a clean month or two before applying, and explain any that happened.
How do funders read overdrafts and NSFs?
| What they see | How it reads |
|---|---|
| None or one or two | Normal |
| Several in one bad month | Explainable, with a reason |
| Several every month | The account can't carry another payment |
| Returned funder debits | A red flag |
How many NSFs is too many?
There's no single cutoff. Funders count NSFs and negative days over the last few months, and a handful spread across a quarter reads very differently from a cluster in the last few weeks. Recent ones carry the most weight, so a clean recent month helps more than any explanation.
What helps a file with recent NSFs?
- A cushion in the account for a few weeks before you ask for funding.
- A short note on any bad month.
- Fewer small automatic debits on the same day.
- Telling us about open advances so we can check the total.
What does this look like with real numbers?
Say your business had four returned items last month and none the two months before. Many funders will ask what happened and still look at the file. If the pattern is four or more every month, most will pass or offer a small amount, because returned items suggest the account can't carry a daily debit. A short note explaining a one-time cause, like a customer's check that bounced, helps the funder read the statement correctly. Keep the note to a sentence or two, and point to the statement page it explains.
What should you ask the funder?
- How many NSFs do you accept in a month?
- Do you look at average daily balance?
- Will a note about a bad month help?
- Would a smaller amount change the answer?
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.
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.