How Small Changes Can Improve Your MCA Approval Rates

approval rates

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When you’re sending out MCA deals, there’s a lot that can impact the final approval. Some things are out of your hands, but others are right in front of you. It’s not always about major overhauls or time-consuming strategies. Often, it’s the minor stuff that quietly makes or breaks a deal.

A few changes to your daily process can push your approval rates in the right direction. The good news is these changes don’t need to be complicated. Think more along the lines of sharpening your paperwork, knowing which clients to prioritize, and asking better questions up front. These aren’t massive shifts. But when they add up, they keep your submissions smooth, consistent, and more likely to get approved.

Review And Improve Documentation Practices

One area that can either speed up or stall an MCA deal is documentation. If what you submit is incomplete or disorganized, it hurts the deal from the start. Lenders don’t want to chase down missing forms or sort through unclear numbers. Tight, clear documents show that you’re serious—and that your client is, too.

Here are some things to clean up today:

– Make sure every bank statement is complete, clearly dated, and easy to read
– Double-check that applications are fully filled out without skipped sections
– Keep business licenses, voided checks, and IDs in one place for quick access
– Use file names that make sense, like clientname_aprilbankstatement.pdf, so nothing gets lost

It helps to build a checklist for each deal. That way you’re not scrambling when someone asks for “just one more piece of info.” A repeatable process makes it easier to spot red flags before your funder does. One broker we worked with created their own intake sheet that included a notes section. That simple move helped them catch errors early and drastically cut down on back-and-forth questions.

Clean, complete paperwork cuts down on review time and keeps deals moving. It also shows funders that you’re a reliable partner who’s worth working with again.

Enhance Your Pre-Qualification Process

Not every deal is meant to go forward. Figuring that out early helps everyone save time. Lenders appreciate partners who send strong leads, and clients respect you more when you’re honest about what’s realistic. That’s why good pre-qualification matters so much.

A better pre-qualification process might include:

1. Look at the average daily balance. If it dips too much, the client may have cash flow issues that hurt approval odds
2. Review their outstanding obligations. If they’re already paying off several advances, they might not qualify for more
3. Understand their industry and season. Is it a slow part of the year or a time of expected revenue dips?
4. Watch the deposit patterns. Random spikes, long gaps, or inconsistent revenue can all raise concerns

Catching these areas early helps you avoid submitting deals that are likely to be rejected. It saves your time, the funder’s time, and sets better expectations with clients. One of the best ways to build trust is to be upfront about what you see. When clients appreciate your transparency, they’re more likely to work with you again.

Strengthen Client Communication

It’s easy to overlook how much communication shapes the MCA process. A lot of stalled files come down to misunderstandings or unclear expectations. Good communication not only keeps deals on track but also strengthens your relationship with clients.

Start strong by laying everything out in a quick call. Walk the client through what you’ll need, why it matters, and how they can help move things forward. If they’re left guessing, they often deliver missing or partial information, which slows everything down.

Some habits to improve your communication:

– Open each new deal with a clear phone call explaining the timeline and process
– Send out simple checklists so clients know exactly what documents to provide
– Keep them updated, even when there’s no new progress, so they know things are moving
– Let them know what’s next. If underwriting is pending or a bank statement is missing, say it clearly

One broker made the switch from emails to texts for quick client updates. Many of their small business clients didn’t check email regularly, but responded fast to texts. That easy switch helped the broker speed up submissions and land more funded deals.

You don’t need fancy software to communicate well. Just clear, consistent updates and prompt replies go a long way. The more your clients understand, the smoother your deals will flow.

Optimize Financial Representations

A client’s numbers might be fine, but if those numbers look confusing on paper, it can sink a deal. Lenders need to understand the business at a glance. How the financial data is presented often affects whether they approve, ask more questions, or pass altogether.

Make sure everything looks connected. For example, if a client reports $50,000 in monthly revenue, but their statements show less, that gap raises red flags. Always double-check that what’s submitted matches across the board.

Improve how you present financials by doing the following:

– Build a clean summary of average balances, revenue, and key expenses
– Highlight any positive patterns like growing revenue or stable inflows
– Flag anything unusual with a note. That could include single large deposits or returned payments
– Use tools that combine bank statements and PDFs cleanly rather than mailing screenshots or photos

Packaging isn’t just about appearance. It’s about clarity. When underwriters can follow the numbers easily, they trust the deal more, and approvals happen faster.

Keep KYC Information Updated

Know Your Customer (KYC) may feel like just another form, but it’s a deal stopper when done wrong. Funders rely on this information to verify identity and business legitimacy. Even small mistakes or out-of-date info can place a deal on hold.

Bring structure to this part of your process. Don’t wait to gather this information at the last minute. Start with it every time.

Your KYC checklist should include:

– A clear, valid photo ID for the business owner
– Voided check tied to the account where the funds will be deposited
– Current business license that matches the company name on the paperwork
– Updated address and contact information across every document

Small inconsistencies across the KYC docs can throw off the entire deal. If names are spelled differently, business types don’t align, or phone numbers don’t match, things slow down fast.

Building this into your initial intake makes for fewer surprises and shows funders that you’re thorough. Deal decisions rely as much on clean processes as the actual business results.

Driving Success With Small Changes

Fixing approval rates doesn’t mean tearing everything apart. Most of the time, it’s the simple tweaks that build up and make the biggest impact. A slightly better intake form, quicker communication, or neater documents can change how lenders see your deals.

One improvement leads to the next. When your documents are cleaner, funders respond faster. When your clients feel informed, they deliver what’s needed on time. Each new habit makes your job easier and makes results more consistent.

These small adjustments don’t require a completely new system. They just take attention and some intentional effort. The brokers who take time to streamline their process, clean things up, and maintain that consistency tend to get more deals funded and build better relationships with both clients and lenders.

If you’re looking to grow your funding volume and support more clients, explore how MCA broker programs can help strengthen your workflow and deal approvals with TMR Now. Streamlining how you manage deals and communicate with clients can take your brokerage to the next level. Start Now.

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