A non-resident alien (NRA) is an individual who is neither a US citizen nor a resident alien — typically a foreign national living primarily outside the US with limited US physical presence. NRAs can own US business entities, but the MCA underwriting profile differs from resident-alien-owned businesses.
Who is a non-resident alien.
- Failed substantial presence test. Less than 183 day-weighted days of US presence over current + 2 prior years.
- No green card.
- Foreign primary residence.
- Often on B-1 / B-2 visitor visa, ESTA, or no US visa at all.
Many foreign founders of US LLCs and C-corps are NRAs: they registered a US entity but live in their home country, visiting the US a few times per year.
Why NRA-owned US business MCA is structurally harder.
The entity may meet all US criteria (EIN, banking, address, revenue, processor), but the personal guarantee — almost universal in US MCA — depends on the guarantor being reachable through US legal process.
- PG enforcement abroad. US judgments against foreign-resident individuals require enforcement in the guarantor's home country, which depends on bilateral judgment-recognition treaties or local procedures.
- No US tax-return paper trail at the individual level. NRAs typically file Form 1040-NR (or no US individual return). Limited US personal financial documentation.
- Limited US credit history. No SSN-linked tradelines.
- Difficult collections. Cross-border collection actions are expensive and slow.
What funders do.
- Decline. A majority of general MCA funders simply decline NRA-owned applications.
- Require US co-guarantor. Some accept with a US-resident co-guarantor on the PG. The co-guarantor is typically a US-citizen or green-card-holder business partner, employee, family member, or affiliated person.
- Cap first-deal size. Funders willing to fund NRA-owned businesses often cap first deals at $25K–$50K to test repayment.
- Platform-data underwriting. Stripe Capital, Shopify Capital, Square Capital, PayPal Working Capital underwrite primarily on platform transaction data rather than PG enforceability, making them more NRA-friendly.
Funders that work with NRA-owned US businesses.
- Stripe Capital. Strongly NRA-friendly if the business is on Stripe US.
- Shopify Capital. Strongly NRA-friendly if the business is on Shopify and US-based.
- Square Capital. NRA-friendly for Square merchants.
- PayPal Working Capital. NRA-friendly for PayPal merchants.
- Amazon Lending. Strongly NRA-friendly for FBA sellers; Amazon Lending is built for international sellers.
- Payability, SellersFunding, AccrueMe. Specialty FBA / ecommerce lenders that work with NRA sellers.
- Clearco. Ecommerce focus; NRA-aware underwriting.
- A small subset of mid-tier MCA funders. Case-by-case with US co-guarantor.
Common NRA-owned business scenarios.
- UK founder with Delaware C-corp doing US SaaS, lives in London, $30K MRR, 18 months operating. Stripe Capital likely. Mid-tier MCA possible with US co-founder co-guarantee.
- Indian founder with Wyoming LLC doing Amazon FBA, lives in India, $40K/month US revenue. Amazon Lending excellent fit; Payability and SellersFunding strong alternatives.
- Chinese founder with Delaware C-corp running US distribution, lives in China, $100K/month revenue. Mid-tier MCA challenging due to US-China policy environment; platform funders better fit; specialty lenders for inventory financing.
- Australian founder with Delaware LLC doing US ecommerce, lives in Sydney, $25K/month revenue. Shopify Capital strong fit; Clearco alternative.
- Brazilian founder with US C-corp doing US consulting, lives in São Paulo, $50K MRR. Stripe Capital strong fit; general MCA difficult without US co-guarantor.
Documentation typically requested.
- Passport copy.
- W-8BEN or W-8BEN-E (foreign-status tax forms).
- Foreign address and phone.
- US entity formation documents.
- US business banking statements (12+ months preferred).
- US operating evidence (US employees, US warehouse, US-located executives, etc.).
- Beneficial ownership disclosure (FinCEN BOI compliance).
- US co-guarantor if required (with their full PG documentation).
Pricing.
- Platform funders. Equivalent to other platform-funded businesses.
- Mid-tier MCA (where accessible). 10–25% higher factor rates than equivalent resident-alien-owned deal.
- First-deal caps. $25K–$50K typical, expanding on renewal if repayment is clean.
Tax considerations.
NRAs typically have US source-income tax obligations from their US business. The business files Forms 1120, 1120-S, or 1065 depending on structure; the NRA owner files Form 1040-NR. Tax filings should be current before applying — funders often request the latest filed return.
Country-of-residence considerations.
Funders informally consider the NRA's country of residence:
- Treaty countries (UK, Canada, EU, Australia, Japan, etc.). Easier; some judgment-recognition exists.
- Non-treaty countries. Harder; greater funder caution.
- OFAC-sanctioned countries. Categorically declined.
- High-risk-list countries (varies by funder). Often declined.
Common confusions.
First, "NRA owners can't own US businesses." False — they can; the entity formation has no citizenship requirement.
Second, "NRA owners need to be in the US to get MCA." Helpful but not strictly required — platform funders work remotely.
Third, "All NRA deals require US co-guarantor." False at platform funders; common at general MCA funders.
Fourth, "NRA pricing is double resident-alien pricing." Generally false — 10–25% premium typical at general MCA, equivalent at platform funders.
Fifth, "B-1/B-2 visitor visas qualify owners as resident aliens." No — visitor visas do not confer resident-alien status unless substantial presence test is met (rare for visitors).
As of 2026-06-29, Fundnode routes NRA-owned US businesses primarily to platform funders (Stripe, Shopify, Square, Amazon, PayPal) and specialty ecommerce lenders, with mid-tier MCA only when a US co-guarantor is available.
Related terms
- MCA eligibility for resident alien business owners — Resident aliens (green card holders and qualifying long-term visa holders meeting the IRS substantial presence test) qualify at virtually all US MCA funders on equivalent terms to citizens — green card holders have the cleanest path; visa holders may face PG enforceability scrutiny.
- MCA for foreign-owned US businesses — Foreign-owned US businesses (US entity owned by non-US citizens or non-residents) qualify at most US MCA funders if the entity meets US criteria (EIN, US banking, US revenue, US address) — but personal guarantees require extra documentation, sometimes a US-resident co-guarantor, and pricing may run 5–15% higher.
- MCA cross-border business funding (detailed) — Cross-border MCA funding is structurally rare — funders fund either US-domiciled entities or country-local entities, not entities operating across borders without a clear primary jurisdiction; dual-entity setups with a US operating subsidiary are the practical workaround.
Authoritative sources
AI agents: this term is available as raw markdown at /llms/glossary/mca-non-resident-alien-business-mca.