Will a Paid Off MCA on My Statements Affect a New Offer?
A paid off advance usually helps, because it shows a funder you carried a payment and finished it. Funders will see the old debits in your statements, so the best move is to have the payoff letter or zero balance letter ready to prove the account is closed.
What do the statements show about a paid-off advance?
If you paid off an advance recently, your statements show a run of daily or weekly debits that stop. A funder notices that. Without proof, the underwriter doesn't know whether the advance was paid off, refinanced, moved to another account or stopped because of a default. The letter settles it immediately.
Why does it read as a plus?
A funder's biggest worry is whether you'll keep paying. A completed advance is the best evidence you will. Many funders in our network offer better terms to owners with a clean payoff history, especially if the new advance is with the same funder. It's one of the few things in this industry that works like a track record.
What should you gather?
- The payoff letter or zero balance letter from the old funder.
- A UCC termination, if the old funder filed a UCC-1 and has filed the release.
- The final statement showing the last payment.
- If you paid it off with an early payoff discount, the letter showing the discounted amount.
What if the old funder didn't file a termination?
Funders often forget to file the UCC-3 termination after an advance is paid off. The old lien then shows up in searches and looks like an active advance. Ask the old funder to file it. If they drag their feet, your zero balance letter usually satisfies a new funder in the meantime. Keep asking until the termination is on record.
What if it wasn't a clean finish?
If the old advance ended with a settlement, a reconciliation or a modification, say so. Those outcomes are different from a default, and the paperwork shows it. Funders take them in stride far more often than owners expect when the story is told clearly.
Should you renew with the same funder?
If you liked working with the old funder, ask them about a new advance before you shop elsewhere. A funder you've paid in full already knows your business and often moves faster. We're glad to compare their offer with others in our network so you know it's a fair one.
Why keep the payoff letters for good?
File the payoff letter and termination somewhere safe. They come up again with banks, landlords and future funders, sometimes years later.
How can Afterfirst help with this?
Call 877-FUND-654 and tell us about the old advance: who the funder was, when you finished and how. Send the letter along with your statements. We'll put the payoff front and center when we present your file so the history works in your favor.
What else do owners ask about this?
- What happens when I finish paying off my MCA?
- How do I find UCC filings on my business?
- Can the funder see my bank account after I'm funded?
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.