Can I Move My Business to Another Location or State During an MCA?
Usually yes, but tell the funder first. Many MCA contracts require notice before you move the business, change its name or change the bank account, and moving without notice can count as a default even if sales keep flowing.
Why do funders want notice of a move?
The funder's collection depends on your sales continuing and landing in the account it debits. A move can interrupt sales, change your customers and bring a new bank. A funder that knows in advance can plan for a slow month or a new account. One that finds out from bounced payments assumes the worst.
What steps should you take before moving?
- Read the notice section of your contract.
- Tell the funder in writing about the move, the new address and the timing.
- If the bank account changes, sign a new ACH authorization before closing the old account.
- If sales will dip during the move, ask about a reconciliation ahead of time.
What changes when you move to another state?
A move across state lines can change which state's disclosure laws apply to new financing, and it can change your business registrations. The existing contract usually keeps its original governing law. Keep your entity in good standing in both places during the transition.
What stays the same after a move?
The contract, the purchased amount and the payment stay the same unless you and the funder agree otherwise. The funder's UCC filing typically stays with the business and its assets.
How do you protect sales during the move?
Moving a shop, restaurant or office often means a few slow weeks. If your advance collects a fixed payment, those weeks can feel tight. Ask the funder ahead of time whether it will lower the payment during the move and what documents it needs, usually statements covering the slow stretch. Funders tend to agree when the request comes before the dip, not after the payments start bouncing.
What if you change the business name too?
If the move comes with a new name or a new entity, tell the funder before you change anything. A new entity is a new business in the eyes of the contract, and switching sales to it without the funder's agreement can look like diverting receivables. Your attorney can help set it up in a way that keeps the contract intact.
Where should you update your address?
Update your address with the funder, the bank, your card processor and the state. Mail from the funder about payments and notices should reach you at the new location without delay.
Can a move improve your next offer?
If the move is part of growth, like a bigger space or a better location, share that with the funder. It sometimes opens the door to an add-on or a renewal once the new location is running well.
How can Afterfirst help with this?
If you're planning a move and have an advance we arranged, call 877-FUND-654. We'll help you contact the funder, update the account and plan for any slow weeks during the move.
What else do owners ask about this?
- Can a funder change my MCA terms after I sign?
- What happens if my bank account is closed during an MCA?
- Does an MCA contract need to be notarized?
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.