What Credit Score Do I Need for an MCA?
There's no single minimum. Funders care most about your business deposits, then your open advances, then your personal credit. Some funders will look at lower scores when deposits are strong. A lower score usually means a smaller amount, a shorter term or a higher factor, not an automatic no. Ask whether the funder runs a soft or hard check before it does.
How does your score trade against other factors?
| Your file | What it usually means |
|---|---|
| Strong deposits, lower score | An offer is possible, often smaller or pricier |
| Weak deposits, high score | Score won't make up for thin sales |
| Recent bankruptcy | Fewer funders; see the bankruptcy question |
| Open advances | Matters more than the score to most funders |
Does the funder's credit check hurt your score?
Many funders run a soft check early, which doesn't touch your score. A hard check, when one happens, shows as an inquiry. Ask each funder which kind it runs before you agree to it.
What helps a file with a low score?
- Fewer overdrafts in recent months.
- No new advances right before you ask for funding.
- Asking for the amount you need, not the most you can get.
- Reading MCA for bad credit and does an MCA affect credit.
What does this look like with real numbers?
Two owners each have $60,000 a month in deposits. One has a 560 score and steady deposits with no returned items. The other has a 700 score but ten overdrafts last month and two open advances. Many funders will favor the first file, because the bank statement shows the business can carry a payment. The score still matters: it can change the price, the size of the offer and whether a personal guarantee is required.
What should you ask the funder?
- Do you run a soft or a hard credit check?
- Is there a score you won't go below?
- How does my score change the factor?
- Do you check business credit too?
Where can you check your own numbers?
The short version is in the Credit FAQ. To check the numbers on your own advance, use the funder fit checker.
Want a second look at your advance?
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.