Can I Get an MCA for a Business I Just Bought?
Often yes, if the business kept operating through the sale and the deposits kept flowing into an account you now control. Funders care more about the business's sales history than how long you personally have owned it, though they'll want proof of the purchase.
What do funders look at after an ownership change?
When a business changes hands, the funder asks two questions. Is the business still selling what it sold before? And is the new owner really the owner? The first question is answered by bank statements. The second is answered by paperwork. Expect to be asked for:
- The purchase agreement or bill of sale.
- Updated state filings showing you as the owner or member.
- Bank statements that show the business's deposits before and after the handover.
- Your ID, since you'll be the one signing and guaranteeing.
Where does it get harder?
The trouble spots are predictable. If the sale moved the business into a new entity with a new EIN and a new bank account, a funder sees a young account and a young entity, even if the shop has been open for decades. If the previous owner still has the old account and the deposits haven't moved yet, the funder can't collect from an account you don't control. Another snag is an old advance. If the prior owner had an MCA, the UCC filing and the contract are often still tied to the business. Funders will find it. Clear that up in the purchase, with a payoff letter or a release, before you shop for new funding.
When is the right time to apply?
Owners often need capital right after a purchase for inventory, repairs or payroll. If you can, get the deposits running through your account first and keep the prior owner's statements from the months before the sale. That combination gives a funder the full picture and tends to widen your options.
How can the seller's statements help?
The previous owner's cooperation makes a big difference. Ask for the business bank statements from the months before the sale as part of the deal, along with the card processing statements and any lease assignment. If the seller agreed to stay on for a transition, a funder sees that as a plus, since the business isn't losing all its know-how at once. If the purchase included seller financing, tell us. A note owed to the seller is a real monthly obligation, and funders will want to know about it. It doesn't rule you out, but it changes how much of a new payment the business can carry, and it's better to show it plainly than to have a funder spot the payments on your statements and ask.
How can Afterfirst help with this?
Call 877-FUND-654 and walk us through the sale: when it closed, whether the entity changed and where the deposits land today. Send the purchase paperwork and the bank statements you have, old and new, and we'll tell you which funders will read the history as one business.
What else do owners ask about this?
- Can I use a merchant cash advance to buy a business?
- Can I sell my business while I have an MCA?
- Can my bookkeeper or partner handle the MCA process for me?
More short answers on this topic are on the applying FAQ, and the funder fit checker 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.