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Top 9 Reasons Why Your MCA was Declined

The Top 9 Reasons your MCA was Declined!

So your mca was declined.   Ouch!!  Here is what you should do about it and turn a denial into an approval offer,  closing and funding!.

The list includes decline reasons that happen during final MCA underwriting and just before funding.

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top 9 reasons your mca was declined
  List of the Top 9 Reasons   why your MCA was     declined

Top 9 Reasons Your MCA was Declined:

1. Affordability

This MCA decline reason means your company cannot handle the new payment without significant problems.

If you know you can manage the payment, then prove it!  Provide your current bank statement, other accounts you may have, or tax return that shows you have the cash flow.

2. Low or Inconsistent Sales: 

Recent monthly sales have been up and down too much.

Make sure the investor isn’t using the lowest month to make their decision.   Ask them to use the average of your deposit totals for your most recent 3 months.

3. Failed Bank Verification:

Your MCA was declined because the company failed the pre-funding final bank verification requirement, such as DecisionLogic.

This almost always happens when the business has cash flow problems during the current month.

The verification failed for either low deposit volume, overdrafts and NSF’s, or not enough individual deposits.   It is usually some combination of these issues.

Ask specifically what they saw in the current Month that they don’t like.

Decide if this can improve enough to qualify in the next few days.  If not, apply above to get another funding option.

4. Credit Score Too Low: 

Some programs require a minimum credit score of 550, 600, or even 650.

Find out what score is required.  If it is too high, apply for a program that will accept your credit score before you apply.

5. Low Current Month To Date Sales:

Your current month’s cash flow was too low.

Ask the lender what minimum sales amounts are they looking for?

Also ask how much do you need to put into your account in the next week or two to qualify.   By doing so, you may be able to qualify before the current month is over and not have to wait until the next month.

6. Recent Overdrafts or NSF’s:

Overdrafts or NSF’s in your checking account in the last 3 months were excessive, and why your MCA was declined.

Add up exactly how many Overdrafts and NSF’s you had.    Ask the lender what the maximum is and how long before you will qualify.

7. Not Enough Deposits Per Month:

There were not enough individual deposits.    Some funders require 5 or more each month.

Make more frequent smaller credits if possible.

Find a source that will accept the number per month you are now making until you can start making more.   Ask in advance what their mimimum is.

8. Time in Business Too Short:

The time in business is not long enough through the Secretary of State or on your License.

Ask the funder how long they require.  If you are within 30 days of the minimum,  then ask for an exception.

If they refuse, then find a program that will accept how long you have been operating.

9. Background Check Failed:

A background check revealed something they didn’t like.   When you get this MCA decline reason, learn more about a Business Loan with a background problem here.

Ask the MCA company specifically what the problem was, and if that matches what you know to be true.

Shop other MCA companies that have programs that accept your background issue before applying.

Want to learn more about getting a business loan with a background problem?   Read this, or watch this video.


Still Don’t Qualify?   NO problem either.  Apply Below Now for a different unsecured or secured alternative.


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Why choose an MCA option anyway?

    • Unsecured financing has less risk.   You do not need to offer collateral with a loan against your assets.
      • Up to 18 Month Term options for 600 and 1 Year in business and higher.
      • Get money against your cash flow again after payoff.  Use it to get money more than once.
      • Programs for as low as $2,000.
        Lower offers makes this a better option than regular title loans.  No need to risk your vehicle or equipment for a small amount of money.

      Need more general info on developing your business? Visit the SBA for resources
      such as local assistance, business guides and business plans.

      Conclusion: Why your MCA was Declined.

      Your MCA was declined for one of these reasons listed above.

      Take the actions listed and you can still get an approval offer and funding quickly!

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