Can the Funder See My Bank Account After I'm Funded?
Sometimes. Some funders monitor your account through a read only bank connection you approve during underwriting, and many contracts let them ask for updated statements during the advance. They can't move money beyond the debits you authorized, and a read only view doesn't let them spend from your account.
How do read-only bank connections work?
To verify statements, many funders ask you to connect your bank account through a secure data service. That gives the funder a read only view of transactions and balances. Some funders stop there. Others keep the connection active for the life of the advance so they can see how the account is doing and spot problems early. Your contract or the authorization you sign should say which.
Why do funders keep watching the account?
A funder collecting a share of your sales wants to know if sales are dropping, if the account is going negative or if a new advance appears. Watching lets them react, and sometimes that works for you. A funder who sees your deposits fall can offer a reconciliation before a payment bounces. It also gives them early notice of stacking or of sales being moved to another account.
What can't a funder do with that access?
A read only connection lets a funder see, not spend. The only money a funder takes is through the ACH authorization you signed, for the amounts the contract sets. If you see a debit you didn't agree to, call the funder and your bank right away.
Can you turn the connection off?
You can usually revoke a data connection through your bank's security settings or the data service. Check your contract before you do, since some agreements require you to keep providing access or updated statements. Cutting it off without talking to the funder first can be treated as a breach.
Will the funder ask for updated statements?
Even without a live connection, many contracts require you to send statements when asked. Funders tend to ask when you request a reconciliation, a renewal or a change to your payments. Keep your statements easy to download so you can send them quickly.
Will the funder see a new advance?
If a funder can see your account and a new advance deposit appears, it'll notice right away. Many contracts limit additional financing. Talk to your current funder or to us before taking a second position, so a surprise doesn't turn into a default notice.
Where do you manage data service settings?
Most data services let you see which companies have access to your bank data. Review that list now and then. Old connections to funders you've paid off can usually be removed with a click, and that's good housekeeping for any business.
How can Afterfirst help with this?
If you're not sure whether a funder still has a connection to your account, call 877-FUND-654. We'll help you read the contract and the authorization so you know what the funder can see and what you agreed to share.
What else do owners ask about this?
- What if my MCA funder is debiting more than we agreed?
- Who do I contact about my MCA after funding?
- Does personal spending on my business account hurt my MCA?
More short answers on this topic are on the bank statements and deposits FAQ, and the MCA payment calculator runs the numbers for your own file.
Have a question we didn't answer?
Ask us on the call. 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.