Does an MCA Contract Need to Be Notarized?
Usually not. Most MCA contracts are signed electronically without a notary. A confession of judgment in states that still allow it can require a notarized affidavit, which is one of the few times a notary comes up.
Why is notarization rare for an MCA?
A notary confirms your identity and that you signed willingly. E-signature platforms already verify identity with codes and records, and the verification call confirms you understand the deal. For most commercial contracts, that's enough.
When does a notary show up?
- A confession of judgment affidavit, where state law requires it.
- Some real estate related documents, if a lien on property is involved.
- Certain corporate resolutions, when a funder asks for proof that the business approved the deal.
Does remote notarization count?
Many states allow remote online notarization, where a notary verifies you by video. If a funder needs a notarized document, ask whether remote notarization works, which saves a trip.
Why be careful with a confession of judgment?
A confession of judgment lets a funder get a court judgment quickly if you default. Some states restrict or ban them. If a contract includes one, read it carefully and consider talking to an attorney. Our confession of judgment guide explains the basics.
What does a notary check?
A notary confirms your identity with a government ID, watches you sign and records the signing in a journal. The notary doesn't review the contract's terms or tell you whether it's a good deal. That part is still up to you and your advisors.
What if someone rushes you to a notary?
Slow down. A notarized confession of judgment is a serious document, and some states limit or ban them. You're allowed to take time to read it and to ask an attorney before you sign. A funder that won't wait a day for you to understand what you're signing is telling you something about how it'll treat you later.
Do you need a corporate resolution?
On larger deals, funders sometimes ask for a resolution from the business's owners or board approving the financing. A notary sometimes witnesses the signature. It's routine paperwork that confirms the person signing has the authority to bind the business.
Which business documents need a notary for other reasons?
Some owners confuse notarization with other formalities. Filing a UCC termination, getting a payoff letter or signing an ACH authorization doesn't need a notary. If a document asks for one, ask why.
Why keep copies of notarized papers?
If you do sign something in front of a notary, keep a copy of the notarized page along with the rest of your contract. It's part of the record of what you agreed to.
How can Afterfirst help with this?
If a funder asks you to notarize something, call 877-FUND-654 first. We'll tell you what the document is and why it's being asked for, so you know what you're signing.
What else do owners ask about this?
- Is it safe to e-sign an MCA contract?
- What does a jury trial waiver in an MCA mean?
- What's the difference between an MCA approval and an offer?
More short answers on this topic are on the offers and contracts FAQ, and the MCA offer comparison 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.