MCA field guide
Common MCA decline reasons
The recurring credit, bank-statement, industry, position, and documentation issues that stop files before an offer.
Quick answer
Most preventable declines come from a hard criteria miss, adverse bank behavior, an undisclosed position, a restricted industry or state, or an incomplete and inconsistent submission.
Hard-threshold misses
Revenue below minimum, insufficient time in business, credit below policy, an unsupported state, a restricted industry, or a position beyond the lender’s maximum can create an immediate decline. Route against current criteria before sending the file.
Bank-behavior concerns
Frequent NSFs, repeated negative days, low average balances, declining deposits, undisclosed advances, gambling activity, and unexplained transfers can outweigh headline revenue.
Incomplete or inconsistent packages
Missing statement pages, mismatched ownership, altered documents, stale applications, and amounts that disagree across documents slow review and can end it. A complete checklist reduces preventable friction.
Practical checklist
- Run the deal against current hard thresholds.
- Check all statement pages and dates.
- Explain recent negative days and NSFs.
- Disclose current balances and payments.
- Resolve ownership and entity-name discrepancies.
- Confirm the submission route before sending PII.
Common questions
Does a decline mean every lender will decline?
No. It may reflect one lender’s policy, product, timing, or documentation requirements.
Should a broker resubmit immediately?
Only after understanding and correcting the cause or identifying a genuinely different eligible lender.
Can missing information become a decline?
Yes. Incomplete or contradictory files can prevent an underwriter from validating eligibility.
Primary sources and context
- Consumer Financial Protection Bureau — Small business lending rule FAQsOfficial federal context for merchant cash advances and sales-based financing.
Methodology and corrections
This guide distinguishes calculations, common industry practice, and lender-specific policy. Criteria should be confirmed from the dated source on each lender profile. Report an error through the correction policy.