An MCA refinance file is not judged by revenue alone. The reviewer has to know every current position, what it costs to pay each one off, how the withdrawals affect the operating account, and whether replacing them would leave enough cash flow to support the new obligation. The documents are how those questions get answered.
Start with a complete position map
| For each position | What to provide |
|---|---|
| Original transaction | Executed agreement, original advance, purchased amount or payback amount, and funding date |
| Current payment | Daily, weekly, or other withdrawal amount and the account being debited |
| Current balance | Dated payoff letter or balance statement from the holder |
| Security and control | UCC filing details, processor arrangements, lockbox, confession or guaranty terms where applicable |
| Performance | Payment history, reconciliations requested, defaults, returned items, or modified payment arrangements |
If one position is omitted, the refinance model is wrong. Bank statements often reveal withdrawals that do not appear on the debt schedule, so the schedule and statements should be reconciled before the file is submitted.
Show the business behind the debits
- Six recent complete business bank statements, including every page
- Current year-to-date profit and loss statement and prior full-year statement
- Current balance sheet and business debt schedule
- Recent business tax returns when the proposed program requires them
- Ownership, entity, and identification documents
- A short explanation of what created the cash gap and what has changed
The core cash-flow test
The desk compares deposits, average daily balance, negative days, returned items, deposit concentration, existing withdrawals, and normalized operating earnings. It then models the account after the positions are paid off. A refinance is useful only when the replacement structure improves cash flow without creating a payment the business cannot support.
Missing information should stay missing
A missing payoff or incomplete statement should produce More information needed, not a made-up balance and not an automatic decline. The useful response is a specific request that names the missing holder, month, or schedule item. That keeps the file moving without pretending the calculation is complete.
Lender pricing and repayment terms depend on the actual proposal. Qualified Commercial's separate origination or success fee, when applicable, is disclosed independently and may be up to 3%. It should never be presented as the lender's rate or included inside a factor-rate comparison without being labeled.
Can a file be reviewed without every payoff letter?
A preliminary review can begin with agreements and the best documented balances, but current payoff letters are needed before the final use of proceeds and closing amount can be confirmed.
Do strong monthly deposits guarantee a refinance?
No. The review also considers margins, average balances, returned items, debt burden, stability, existing defaults, and the proposed structure.
What if the business has several bank accounts?
Provide the operating accounts that receive revenue or pay material expenses and explain transfers between them. Reviewing only the cleanest account can hide the real cash cycle.
Sources and authorities
Always confirm current authority and the rules of the applicable jurisdiction.
- Small business lending rule FAQs: merchant cash advances — Consumer Financial Protection Bureau
Qualified Commercial Underwriting Desk
Credit and capital markets
The Qualified Commercial underwriting desk reviews commercial real estate, dealer and Main Street files daily. The Academy is written from that work (how files are actually read, priced and declined) rather than from a rate sheet.
Educational content only. Nothing here is a commitment to lend, an offer of credit, or tax, legal or accounting advice. Program terms, timelines and thresholds vary by lender, file and market conditions, and any figures shown are illustrative.