MCA Qualification Guide
MCA underwriting is faster than a bank because it evaluates fewer things — but those things matter a lot. Here's exactly what underwriters look at, what makes a strong vs. weak application, and what you can do if you don't qualify yet.
To qualify for an MCA you need: 500+ FICO score, 6+ months in business, $8,000–$10,000+/month in business bank deposits, 0–2 NSFs per month, and a positive average daily balance. Submit 6 consecutive months of business bank statements. No tax returns, no collateral, no business plan required. Decision in 24–48 hours.
| Factor | Minimum (Approvable) | Acceptable | Strong Profile | Impact on Terms |
|---|---|---|---|---|
| Monthly Deposits | $8,000–$10,000/month | $10,000–$20,000/month | $20,000+/month | Determines advance amount directly |
| NSF Frequency | 3/month max (risk) | 1–2/month | 0/month | High: 3+ NSFs often = decline |
| Avg Daily Balance | $500 | $500–$1,500 | $1,500+ | Affects factor rate offered |
| Personal FICO | 500 (hard floor) | 550–649 | 650+ | Affects factor rate, not advance amount |
| Time in Business | 4–6 months (some funders) | 6–24 months | 2+ years | Unlocks more funders and higher multiples |
Ranked by weight in the underwriting decision. Factor 1 is most critical.
These factors frequently result in automatic decline — address them before applying.
If you don't qualify today, here's how to strengthen your application.
Deposit all revenue into your business bank account — not split between personal and business accounts. Underwriters only see what's in the business account they're reviewing.
Set up overdraft protection or a small credit line on your business account. One NSF prevention measure that works is monitoring the account 2 days before scheduled payments.
If your business is seasonal, apply when your trailing 3 months show your highest deposits. An HVAC company applying in July shows stronger 6-month averages than applying in February.
If you have multiple accounts, underwriters review the one you provide. Consolidate deposits into a single account to show the strongest possible deposit picture.
If you just opened your bank account, time is the only solution. Six months of bank history with consistent deposits is the minimum for most providers.
Active IRS tax liens don't automatically disqualify you from MCA, but they are a negative signal. If you have a payment plan in place and can document it, disclosure is better than discovery.
To qualify for a merchant cash advance you typically need: 500+ personal FICO score, 6+ months in business, $8,000–$10,000+/month in business bank deposits, 0–2 NSFs per month, and a positive average daily balance. The primary document required is 6 consecutive months of business bank statements. No tax returns, collateral, or business plan required.
Common MCA disqualifiers include: FICO below 500, business less than 6 months old, monthly deposits below $8,000, 3+ NSFs per month, active bankruptcy or recent discharge within 1 year, daily balance frequently near zero, or business in a restricted industry such as adult entertainment or cannabis in non-legal states.
MCA requires significantly lower credit scores than traditional business loans. The minimum FICO for most providers is 500. Scores above 600 generally receive better factor rates. Credit score matters, but it is not the primary qualification signal — monthly deposit volume is.
Most MCA providers require a minimum of 6 months in business. Business age is verified through bank statement history, not just registration date — so 6 months of bank activity matters more than your LLC formation date.
A tax lien doesn't automatically disqualify you from MCA. Many business owners with active IRS payment plans still qualify based on deposit volume and credit score. Disclosing the lien and providing payment plan documentation is better than hiding it — underwriters will see it in a public records search.
One-page application. 6 consecutive months of bank statements. We'll tell you your advance amount and terms before you commit to anything.
Or call/text: 330-238-3003
T.A.G. Business Funding
500 FICO minimum. Bank declines OK. Revenue matters more than credit score.
500 FICO minimum · $4K–$6K+/month revenue · 4+ months in business
