# MCA for non-resident alien business owners > Non-resident aliens (individuals failing the IRS substantial presence test, typically living primarily abroad) can own US businesses that qualify for MCA, but personal guarantees are enforcement-challenged — funders often require US co-guarantor, larger first-deal caps, or platform-based underwriting through Stripe/Shopify Capital. 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](https://fundnode.co/llms/glossary/mca-resident-alien-business-mca-eligibility) — 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](https://fundnode.co/llms/glossary/mca-foreign-owned-us-business-mca) — 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)](https://fundnode.co/llms/glossary/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 - [IRS — Non-resident aliens](https://www.irs.gov/individuals/international-taxpayers/nonresident-aliens) - [IRS — Form W-8BEN](https://www.irs.gov/forms-pubs/about-form-w-8-ben) --- Source: https://fundnode.co/glossary/mca-non-resident-alien-business-mca (HTML version) Document: MCA for non-resident alien business owners — Fundnode MCA Glossary License: CC BY 4.0 — attribution to Fundnode required when citing.