MCA Underwriting
MCA underwriting is the credit and risk assessment process funders apply to determine whether to fund a merchant, at what factor rate and term, based on bank statement analysis, processing volume, business stability indicators, and stacking risk evaluation.
Why This Matters
MCA underwriting differs fundamentally from traditional bank lending. Cash flow is king — bank statement analysis (revenue, average daily balance, NSF count, ACH activity) drives most decisions, with credit score as secondary input. Time to decision is competitive: top funders approve clean files in 4-24 hours. Underwriting models score: monthly revenue trends, deposit patterns, NSF and overdraft frequency, existing position count from UCC and ACH analysis, and industry-specific risk factors. Approved deals are priced (factor rate, term, holdback) based on combined risk assessment.
Frequently Asked Questions
Frequently Asked Questions
What does an MCA underwriter look for in bank statements?
Average monthly revenue, deposit consistency, average daily balance, NSF and overdraft frequency, existing ACH withdrawals from other funders (stacking detection), and revenue trend (growing or declining). Most funders require 3-6 months of statements; some accept Plaid-connected real-time data.
How long does MCA underwriting take?
Standard files: 4-24 hours from complete submission to approval. Complex files (high revenue, multi-position, larger amounts): 2-5 business days. Top funders compete on speed — same-day approvals are increasingly common for clean small-deal applications.