What MCA funders check first: deposits, then time, then credit
An MCA funder buys a slice of your future sales, so the first thing it studies is how much money flows into your account. NerdWallet notes that many MCA companies weigh your card sales or monthly bank activity most heavily, because those sales are what pay the advance back [3].
Time in business comes second. A business with a few months of history gives the funder less to project from, so the advance is usually smaller and the factor rate higher. Credit comes third. Your personal score can still move the price: NerdWallet lists personal credit among the inputs that set the factor rate you are offered [1].
- Deposits: the average and the lowest month, not the highest.
- Consistency: whether deposits arrive most days or in a few large lumps.
- Existing balances: other advances, loans or liens already being paid.
- Time in business: months since your first sales, shown on statements.
- Credit: your personal score and any recent judgments or defaults.
Revenue minimums: $10,000 a month is the common floor
The figures line up. NerdWallet's guide puts the usual minimum at about $10,000 in monthly sales [1]. Fundera's past MCA customers had over $120,000 in yearly revenue [2], which is the same $10,000 a month. Among the providers NerdWallet profiles, published monthly revenue minimums run from $8,333 to $20,000 [3].
Funders size the advance from those deposits. A business with $15,000 a month will usually see a smaller offer than one with $60,000, even with the same credit score. If your revenue sits right at a funder's minimum, expect a small advance and a short payback, which pushes the estimated APR up.
Check the debit against your slowest month
Say your deposits average $18,000 a month but dip to $11,000 in your slowest month. A fixed debit of $180 every business day takes about $3,780 over a 21-business-day month. That is about 21% of your average month and about 34% of your slowest one.
Run that same test on any offer before you sign. If the slow-month share makes you wince, ask for a smaller advance or a longer payback.
Documents you will be asked for, and why 4 to 12 months of statements
Applications are short. NerdWallet says you will likely provide basic business information and recent sales data [1]. In practice that usually means the list below. Have it ready before you apply and you will spend less time on the phone and more time comparing offers.
- Business bank statements for recent months, every page, for the account the deposits land in.
- Card processing statements, if the advance will be collected from your card sales.
- A photo ID for each owner who signs.
- A voided check or bank letter for the account the debits will come from.
- Your business name, legal entity, tax ID, address and start date.
- A list of any advances or loans you are still paying, with balances.
Why months of statements? New York, which has a commercial finance disclosure law, lets a provider estimate your future sales from your history, and its rule says the look-back period must be no less than four months and no more than twelve [4]. That is why many funders ask for at least four months. Sending a complete set also protects you: the estimated APR and payment count on a disclosure are only as good as the sales history behind them.
The requirement owners forget: what you already owe
Existing balances matter more than many owners expect. In the Federal Reserve's Small Business Credit Survey, 41% of firms that were denied all or some of the financing they applied for said it was because they already had too much debt, up from 22% in 2021 [5].
MCA funders see your other obligations in your bank statements, because every daily or weekly debit shows up there. A second advance on top of a first is called stacking, and many contracts forbid it. If you are already paying one advance, read our stacking guide before you apply for another.
| What shows up | How it tends to read |
|---|---|
| Steady daily deposits | Easier to project, so a better chance of an offer |
| A few large deposits a month | Harder to project; may mean a weekly debit or a smaller advance |
| Another funder's daily debit | Less room for a new debit; may mean a decline or a smaller offer |
| Overdrafts or returned debits | A sign the account cannot carry another debit |
If you fall just short: what to fix first
Missing one requirement by a little is common, and the fix is often cheaper than taking the first offer that says yes. Start with the item closest to the line.
| The gap | What usually helps | How long it takes |
|---|---|---|
| Deposits a little under $10,000 a month | Run all sales through one business account so every dollar shows up | One to three statement cycles |
| Under six months in business | Wait for the sixth full month of statements, or look at products built for newer businesses | Weeks to a few months |
| A low personal score | Pull your reports and dispute any errors; pay down card balances | Weeks to months |
| An advance you are still paying | Finish it, or get a payoff letter so the new funder sees the end date | Depends on the balance |
| Gaps or missing pages in statements | Download full statements from your bank, not screenshots | Same day |
Mixing personal and business deposits is one of the easiest problems to fix and one of the costliest to ignore. If half your sales land in a personal account, a funder may only count the half it can see, and your offer shrinks to match.
If none of these gaps can close in time, look at what else fits a short file. Invoice factoring leans on your customers' credit instead of yours, and equipment financing uses the equipment itself as security.
Meeting the requirements is step one. Pricing the offer is step two.
Once you qualify, the question changes from "can I get it?" to "what does it cost?" A factor rate is not a yearly rate, so convert every offer to total dollars and an estimated APR before you compare. Our MCA true-cost calculator does it in one step.
- Total payback in dollars, and the cash you receive after fees.
- Debit amount, how often it comes, and whether it is fixed or a true split of sales.
- The reconciliation clause: how to get the debit reset if sales fall.
- Whether you sign a personal guaranty or a confession of judgment.
If your deposits and time in business are strong, check whether a line of credit or term loan is open to you first. Batch Capital can show you both side by side when you finish the quiz.