What If I Switched Banks in the Last Few Months?
Switching banks is common and funders handle it fine, as long as you send statements from both the old and new accounts so they can see an unbroken history. The trouble only starts when the old statements are missing or the switch hides something, like returned payments or a closed account.
What do funders ask for after a bank switch?
Funders want a continuous view of your deposits, usually covering the last few months. If some of those months are at your old bank and some are at your new one, send both sets. The underwriter lines them up and reads them as a single business. A short note on when and why you switched speeds things up.
Which reasons for switching raise no concern?
- A better fee structure or a business banking package.
- A merger or branch closure at the old bank.
- A move to a bank that offers better merchant services or card processing.
- Fraud on the old account that forced a new account number.
Which reasons draw more questions?
A funder looks harder when the old account closed with a negative balance, when the bank closed the account itself or when the switch happened right after returned payments to another funder. Moving banks to get away from an existing advance's debits is a serious problem. Most contracts treat it as a default, and funders spot it quickly.
Why save the old statements?
Online access to a closed account often disappears. Before you close an old account, download every statement you have access to and save it. If you've already lost access, call the old bank and ask for copies. They'll send them, sometimes for a small fee, and you'll need them for more than just funding.
How do you move existing payments?
If you have an advance or a loan debiting the old account, don't just close it. Give the funder the new account details and sign a new authorization so the payments move with you. A switch that bounces a payment turns an ordinary bank change into a missed payment on your record.
What if both accounts are still open?
Some owners keep the old account open for a while as payments move over. That's fine, but tell us which account is the main one. Funders want to know where the sales land and where the payments will come from. Two active accounts with sales split between them read as a smaller business in each, so moving everything to one account before you shop the file gives a truer picture.
Which account number goes on the contract?
Make sure the account on your voided check matches the account on the contract and the ACH authorization. A new account number is one of the most common last minute corrections at closing.
How can Afterfirst help with this?
Call 877-FUND-654 and tell us when you switched and why. Send statements from both banks for the full stretch, and we'll present them as one continuous history so the switch is a footnote, not a question.
What else do owners ask about this?
- Can I get an MCA if I just opened a new business bank account?
- What happens if my bank account is closed during an MCA?
- Do funders accept statements from online banks and fintech accounts?
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.