Who Is the Actual Funder on My MCA Offer?
The funder is the company named as the purchaser in the contract, the one that wires the money and collects the payments. As a broker, we shop your file with funders in our network and show you each offer, but the contract is always between your business and that named funder.
How do you find the funder's name?
Look at the first page of the contract. There's a line naming the seller, which is your business, and the purchaser, which is the funder. The same name appears on the ACH authorization and usually on the UCC-1 filing that follows. If the name on the offer summary differs from the name in the contract, ask why before you sign. Some funders operate under a brand name and contract under a legal entity, which is fine, as long as someone explains it.
Why does the funder's name matter?
The funder is who you'll deal with for the life of the advance. They set the payment, handle reconciliation requests, issue your payoff letter and file the UCC termination when you're done. Knowing who they are, and having their servicing contact, saves time the first time you need something.
What's the difference between a broker, an ISO and a funder?
Different companies play different roles in this industry:
- A funder buys the receivables and puts up the money.
- A broker, like Afterfirst, shops your file with several funders and presents the offers. We're paid a commission by the funder when you fund, and it's disclosed in the paperwork.
- An ISO is an industry term for a sales company that sends deals to funders. Many brokers are ISOs.
Some companies that market themselves as direct funders are actually brokers. That isn't a crime, but you deserve to know who you're really contracting with.
How do you check a funder out?
Once you know the funder's legal name, look them up. Search the business name with your state's secretary of state, check how long they've operated and look at how they describe themselves online. Read the servicing section of the contract to see how you reach them after funding. If a funder won't tell you its legal name or where it's located, don't sign. It's also fair to ask us why we chose a particular funder for your file. Our answer should be specific: how they treat your industry, how they handle reconciliation, how their early payoff terms work. Those details matter more than the name on the letterhead.
What if offers come from more than one funder?
When we bring back several offers, each one names its own funder. Compare them side by side, and remember the choice of funder shapes your experience for months, from payment changes to the payoff letter at the end.
How can Afterfirst help with this?
If you have an offer and aren't sure who the funder is, send it to info@afterfirstmca.com or call 877-FUND-654. We'll read the contract with you and tell you which company you'd be dealing with, and if the offer came from us, we'll give you the funder's servicing contact up front.
What else do owners ask about this?
- What does a funder ask on the verification call?
- Who do I contact about my MCA after funding?
- Can I apply for a merchant cash advance from my phone?
More short answers on this topic are on the applying FAQ, and the funder fit checker 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.