Documents needed for merchant cash advance files, statements first
Who this page is for: owners getting ready to apply, and brokers who want to read a file the way an underwriter will.
Reviewed by the Afterfirst Editorial TeamLast reviewed 3 minute read
What are true deposits?
True deposits are what is left once money that did not come from customers is taken out. Funders typically subtract:
- transfers between the business's own accounts
- transfers in from the owner's personal account
- loan and advance proceeds
- returned or reversed deposits
- refunds from vendors
A statement showing $80,000 in total deposits might show far less in true deposits once these come out. Offers are sized on the true number.
What the debits tell a funder
Funders learn the business's fixed obligations and any existing advances from the debits. Repeat ACH debits with funder names, or the same amount every business day, point to advances.
Big regular bills for rent, payroll, suppliers and leases show how much of each deposit is already used.
Those named debits turn an application into a second position or a consolidation file. The stacking guide shows how positions are counted.
Why do negative days and NSFs matter?
Negative days and NSF fees matter because they show when the account could not cover what was going out. A few in a year may be explainable.
A rising number in recent months suggests the business is stretched. Funders count them and look at when they happen, especially around existing debit dates.
The month-to-date statement
Funders ask for this month's statement to date. It shows activity since the last full statement, including any new advance. It is the most current picture of the account. Files often stall when a new advance shows up only in this month's activity and was not disclosed.
What other documents needed for merchant cash advance files do funders ask for?
Besides bank statements, funders often ask for a signed application and the owner's ID. Some also ask for card processor statements, tax returns or a voided check.
Each funder sets its own list.
Owner ID, voided check and entity papers
Funders confirm who owns the business and that it exists. A driver's license and business registration details usually cover this.
Card-heavy businesses and processor statements
A card-heavy business may be asked for merchant processing statements. They show card volume before fees and chargebacks.
Gross card sales against net deposits
Processor statements show gross card sales; bank deposits show what arrived after fees. Funders compare the two to confirm volume.
Chargebacks between the two figures
Chargebacks and refunds sit between gross card sales and the deposit. A rising chargeback share is something funders ask about.
A typical funder checklist, item by item
A typical checklist: signed application, recent bank statements plus this month to date, owner ID and a voided check. Add processor statements if cards are a large share. We confirm the exact list per funder.
Statement questions
Owners gathering documents usually ask these.
How many months of statements does an MCA funder want?
Many funders ask for several recent months, and some want more for seasonal businesses. Each funder sets its own requirement. The month-to-date activity is often requested as well.
Do funders look at personal bank statements?
Most merchant cash advance funders focus on business bank statements. Some ask about personal accounts when money moves between them often. Keep business revenue in the business account.
Can I explain an unusual month on my statements?
Yes. It helps to explain a big one-time deposit, a slow month or an odd expense up front. A short note with documentation keeps a funder from guessing. Brokers can put it on the submission.
Sources
- The Federal Trade Commission tells owners to ask questions before turning over confidential financial information (business blog, June 16, 2021). That applies to every statement you send for merchant cash advance underwriting.
Afterfirst is not a lender; all offers are subject to funder underwriting.
Cost, credit, speed and stacking
- Cost
- Statements do not set the price, but they shape the offer. Clean months with few overdrafts give a funder less to worry about.
- Credit
- Ask each funder whether it reads a credit report as well as statements, and how, before you sign.
- Speed
- We do not promise a date. Full months plus month-to-date answer the first request most funders make.
- Stacking
- Every open debit shows on your statements anyway. Name each advance so the file matches what the funder sees.
Send one file.
See what fits.
Next step: Call 877-FUND-654Email info@afterfirstmca.com first, then send the documents needed for merchant cash advance underwriting when we reply. We read them this way before any funder does.A person replies within one business day.
Or write to the desk at info@afterfirstmca.com
A person replies within one business day.