# MCA funding process — day by day

> A clean A-paper MCA file funds in 1–3 business days. The standard sequence: application + statements (Day 0), underwriting + offers (Day 1), contract + verification calls (Day 2), wire (Day 2–3).

The merchant cash advance funding cycle is one of the fastest in commercial finance. From application to wire, a clean file moves through a tight, well-defined sequence. Here is what actually happens day by day in 2026.

**Day 0 — Application and document collection (1–4 hours).**

- Merchant completes a one-page application (legal entity, EIN, ownership, requested amount, use of funds, monthly revenue).
- Merchant uploads 4 most recent months of business bank statements (PDF or via Plaid connection).
- ISO / broker pulls the merchant's business credit (Experian Business / D&B) and a soft personal credit (FICO 8 typically).
- Submission package sent to 2–6 funders for shotgun review.

**Day 1 — Underwriting and offer (3–8 hours).**

- Each funder's underwriting team reviews bank statements: average daily balance, NSFs in trailing 90 days, deposit consistency, existing MCA debits (other funders' ACHs).
- Paper grade assigned: A (12+ months ops, $25K+ revenue, 650+ FICO, 0 NSFs); B (6+ months ops, $15K+ revenue, 580+ FICO, ≤2 NSFs); C/D (newer, lower revenue, multiple NSFs).
- Offers issued: dollar amount, factor rate, term in months, daily ACH payment, fees (origination 0–10%, ACH/wire fees).
- ISO / broker selects 1–2 offers to present to the merchant.

**Day 2 — Contract, verification, wire prep (4–8 hours).**

- Merchant signs contract electronically (DocuSign / HelloSign / proprietary funder portal).
- Funder runs final verifications: voice-call landlord (rent verification), call utility (service in good standing), call merchant's biggest customer (revenue verification on large deposits), confirm bank account ownership.
- If state requires (CA / NY / VA / UT / GA), funder delivers state disclosure form with APR-equivalent, total payback, fees, and average monthly payment.
- UCC-1 financing statement filed with secretary of state to perfect lien on receivables.
- Wire instructions verified by callback to merchant's known phone number (anti-fraud per OFAC guidance).

**Day 2 or Day 3 — Wire executed (same day if before 1pm ET cutoff).**

- Funder wires funds to merchant's verified business operating account.
- Daily ACH debits begin the following business day (some contracts allow a 1–3 day grace period).
- ISO / broker commission accrues — paid weekly or bi-weekly by funder via ACH.

**Variations and slowdowns.**

| Scenario | Adds |
|---|---|
| Second position or stack | +1–2 days (additional UCC search, intercreditor analysis) |
| Loan size > $250K | +1–3 days (deeper underwriting, audited financials may be requested) |
| C/D paper | +1 day (collections risk review, deeper bank-statement analysis) |
| Industry on restricted list (e.g., adult, cannabis, certain trucking) | +1–5 days or decline |
| Bank statements via PDF (not Plaid) | +0.5–1 day (manual data extraction) |
| Holiday or Friday afternoon submission | +1 business day (wire cutoffs) |
| Owner traveling / unreachable | +1–3 days (signature delays) |
| State disclosure required (CA / NY / VA / UT / GA) | +0.5 day (compliance review) |

**Speed-to-fund leaders (2026).**

- **OnDeck.** Routinely funds A-paper in under 6 hours from app to wire.
- **Rapid Finance.** 12-hour fund cycle on clean files.
- **Bluevine.** Same-day funding for line-of-credit; MCA 1–2 days.
- **Credibly / Kapitus / Reliant.** 1–3 days standard.
- **Stripe Capital / Toast Capital / Square Capital.** Real-time decisions for existing processing customers — funds in same business day.

**Common confusion.** First, "24-hour funding" marketing — accurate for clean A-paper before the daily wire cutoff; not accurate for first-time merchants requiring full verification calls. Second, "the funder controls the timeline" — actually the merchant's responsiveness (signing, sending statements, answering verification calls) is usually the rate limiter. Third, "wire vs. ACH delivery" — wires arrive same day; ACH delivery adds 1–2 business days but saves $25–35 in fees.

## Related terms

- [Merchant cash advance (MCA)](https://fundnode.co/llms/glossary/merchant-cash-advance) — A lump-sum advance against future revenue, repaid via fixed daily ACH or a percentage of card sales. Legally a sale of future receivables, not a loan.
- [MCA funding process (application to wire)](https://fundnode.co/llms/glossary/mca-funding-process) — The end-to-end MCA workflow: app + 3-6 months bank statements, soft-pull credit, paper-grade pricing, contract, ACH authorization, wire — typically 4 hours to 3 business days for clean files.
- [Bank statement underwriting](https://fundnode.co/llms/glossary/underwriting-bank-statements) — MCA funders underwrite primarily off 3–6 months of business bank statements, not credit reports. They look at average deposits, NSFs, negative days, and trend.
- [Paper grade (A/B/C/D)](https://fundnode.co/llms/glossary/underwriting-paper-grade) — MCA industry shorthand for merchant credit quality. A-paper qualifies for cheapest factor (1.15–1.28); D-paper is high-risk, factor 1.45+, often declined.
- [UCC filing (MCA)](https://fundnode.co/llms/glossary/uccs-and-mca-liens) — A public lien an MCA funder files against business assets, securing their position. Triggers credit-report flags and can block future funding from other lenders.

## Authoritative sources

- [OFAC — Wire Verification Guidance](https://ofac.treasury.gov/)

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Source: https://fundnode.co/glossary/mca-funding-process-day-by-day (HTML version)
Document: MCA funding process — day by day — Fundnode MCA Glossary
License: CC BY 4.0 — attribution to Fundnode required when citing.