The MCA Requirements Checklist at a Glance
A merchant cash advance is underwritten on how your business earns and banks. Credit is checked, but the decision usually turns on five things: revenue, operating history, bank activity, existing advances, and a complete set of documents. Here is the short version before we go through each one.
| Requirement | What many funders look for* | What they actually check |
|---|---|---|
| Monthly revenue | Often $10,000+ in business deposits | Average true deposits over the last 3 to 4 months |
| Time in business | Often 6+ months; some from 3 to 4 months | Business start date and months of deposit history |
| Bank activity | Regular deposits, few negative days | Deposit count, average daily balance, NSFs and returned items |
| Existing advances | Disclosed; not already a large share of deposits | Daily and weekly debits to other funders |
| Credit | Mid-600 commonly considered; some below 600 | Open bankruptcies, recent defaults, tax liens |
| Documents | Statements, ID, voided check | Complete PDFs that match the application |
*Typical ranges across revenue based programs, not a promise of eligibility. Every funder sets its own minimums, and many change them over time.
Revenue: How Much You Deposit Matters Most
Revenue sets both whether an MCA is possible and how large it can be. Funders look at true business revenue, meaning sales deposits. Transfers between your own accounts, loan proceeds, owner cash injections, and refunds are usually removed before the average is calculated.
Many programs start around $10,000 in monthly deposits, and more options open at $25,000 and above. Offer size is typically set as a share of your average monthly deposits and then reduced if other funders are already collecting from the same revenue.
- Consistency beats a single big month. Three similar months read as a reliable business; one spike followed by two quiet months reads as risk.
- Seasonal businesses should be ready to explain the pattern and, where possible, apply after their normal busy stretch rather than in the middle of a slump.
- Card-heavy businesses such as restaurants, retail, and salons may be offered a split structure where a percentage of card sales repays the advance.
Operating History: Time in Business
Most funders want to see at least several months of deposits before they can estimate future sales. Six months is a common threshold; some programs review businesses from three or four months, and the strongest pricing usually goes to businesses with a year or more of steady activity.
If you bought an existing business or changed your bank account, say so up front. Funders can often count the prior history if you can show it, but they will not assume it.
Bank Activity: What Underwriters Read in Your Statements
For an MCA, your bank statements do the work that a credit report does for a bank loan. Underwriters calculate a handful of numbers from them:
Deposit count. Frequent deposits, for example 15 or more a month, show an active business. One or two large deposits a month are harder to underwrite.
Average daily balance. A balance that stays healthy through the month signals room to handle daily remittances.
Negative days and NSFs. Overdrafts and returned items in the last 60 to 90 days are among the most common reasons an MCA file is declined or priced higher.
Returned payments to other creditors. A returned loan or advance payment tells a funder the business is already stretched.
For a line-by-line walkthrough, read business loan bank statement requirements.
Existing Advances and Other Debts
Every funder can see the daily and weekly debits from other funders on your statements. What they want to know is how much of your revenue is already committed. If current remittances take a large share of daily deposits, a new advance may not be possible, or may only be possible as a refinance of what you already have.
Always disclose existing advances. Undisclosed positions are a frequent reason for a late-stage decline, and some agreements prohibit taking another advance without the first funder's consent. For the full picture, read funding with an existing MCA and MCA debt consolidation.
Credit: Reviewed, but Rarely the Deciding Factor
Many MCA programs consider mid-600 scores, and some review files below 600 when revenue and banking are strong. What matters more than the number is the story behind it: an open bankruptcy, a recent default, or an active tax lien can stop a file that would otherwise qualify. A lower score can still affect the amount and the factor rate.
The SmallByzLoans short form runs a soft check only. A funder may run a hard inquiry later if you continue into a full application. See business funding with bad credit for how other factors combine with your score.
Documents You Will Be Asked For
Nothing is needed to start. To move from review to an offer, most MCA funders ask for:
- Your last 3 to 4 months of business bank statements, full PDFs with every page
- Month-to-date activity if you are well into the current month
- A government-issued photo ID for each owner, commonly those with 20% or more ownership
- A voided business check or bank letter
- Card processing statements for 3 months if a split-of-sales structure is offered
- Balance or payoff letters for any existing advances
- Your EIN, legal business name, and address, matching your bank account
Some funders also ask for a business tax return, proof of business ownership, or a landlord contact for larger requests. The general list for every program is in our document checklist.
Why Requirements Vary by Funder
There is no single MCA standard. Each funder sets its own minimums for revenue, time in business, credit, and industry, and many adjust them as market conditions change. Some funders specialize in newer businesses and charge more for it; others only work with established businesses and price more competitively. State laws also affect disclosure requirements in some places.
A business that meets every typical range can still be declined, and a business outside one range can sometimes be approved elsewhere. Approval, amount, factor rate, and term are always set by the funder after underwriting.
See which MCA programs fit your numbers
One 60-second form, soft check only. A specialist tells you what is realistic before you gather documents.
Before You Apply: A 5-Minute Self-Check
- Average your last three months of true business deposits, excluding transfers and loan proceeds.
- Count your negative days and returned items in the last 90 days.
- List every existing advance or loan with its payment amount and frequency.
- Decide the amount you actually need and what it will earn or save you.
- Download full statement PDFs now so the application is not held up later.
When you are ready, the merchant cash advance application page walks through every step and shows example costs.
Frequently Asked Questions
What are the minimum requirements for a merchant cash advance?
Many funders look for around $10,000 or more in monthly business deposits, 6 or more months in business (some review from 3 to 4 months), regular bank activity without frequent negative days, and a business bank account. Requirements vary by funder, and meeting them does not guarantee approval.
Can I get an MCA with bad credit?
Often an MCA is reviewed with lower credit because revenue and bank activity carry more weight. Open bankruptcies, recent defaults, and active tax liens can still stop a file, and a lower score can mean a smaller amount or a higher factor rate.
How many bank statements do I need for an MCA?
Usually the last 3 to 4 months, as complete PDFs downloaded from your bank. Some funders also ask for month-to-date activity or up to 6 months for larger requests.
Do I need collateral for a merchant cash advance?
Usually not specific collateral. Most MCA agreements do include a personal guarantee of performance and a UCC filing on business receivables. Read the agreement carefully before signing.
Can a new business get an MCA?
Some funders review businesses with 3 to 4 months of deposits, usually at higher cost. Many programs require 6 months or more. A business with no revenue history generally will not qualify for an MCA.
Do I need tax returns for an MCA?
Usually not for smaller advances, since underwriting relies on bank statements. Larger requests or certain funders may ask for a recent business tax return.