Will a Funder Look at My Personal Bank Account?
Most funders read only your business bank statements. A few ask for personal statements when the business account is young, when the owner runs some business income through a personal account or when the file is large and the funder wants the whole picture.
Why is the business account the focus?
The advance is between the funder and your business, and the payments come out of the business account. So that's the account a funder reads to size the deal. Personal finances matter mainly through the personal guarantee and your credit report, not through your personal checking statements.
When do personal statements come up?
- A sole proprietor who has run the business through a personal account and only recently opened a business one.
- A business where customer payments land in a personal app account before they're moved over.
- A funder that wants to confirm the owner isn't carrying heavy personal debt payments on a larger file.
- An owner who moved business money to a personal account to cover a gap and wants to explain the pattern.
What do funders look for in personal statements?
If a funder reads a personal account, it's usually looking for business revenue that should count, or for large obligations that affect your ability to keep the business afloat. They aren't grading your personal spending habits. Still, big unexplained transfers between the accounts raise questions, so have a short explanation ready.
How do you keep the lines clear?
The cleanest setup is simple: sales go into the business account, bills come out of it and you pay yourself by transfer. When that's in place, personal statements rarely come up at all, and the business file speaks for itself. If you're partway through that change, say so and send both sets. Funders handle transitions well when they understand them.
How is your privacy handled?
Your statements hold private information. Send them only through the secure link we provide, and never to a company you haven't checked out. If a funder asks for personal statements and you'd rather not share them, tell us. Sometimes another funder in our network will work from the business account alone.
Is a credit check the same as reading your statements?
The personal side of your file mostly comes through your credit report. It shows your personal debts and payment history, which funders use to judge the guarantee. Your personal checking statements add detail only in the situations above. If your credit has a rough patch, tell us the story behind it, since that context shapes how a funder reads it.
What about joint accounts and spouses?
If your personal account is joint with a spouse who isn't an owner, a funder that reads it sees their activity too. That's another reason to keep business revenue out of personal accounts. It keeps your spouse's finances out of your business file.
How can Afterfirst help with this?
Call 877-FUND-654 and tell us how your accounts are set up. Send the business statements first. If a funder in our network needs anything from a personal account, we'll tell you exactly what and why before you send it.
What else do owners ask about this?
- Do I need a business bank account to get an MCA?
- Does personal spending on my business account hurt my MCA?
- What if I switched banks in the last few months?
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.