Evaluation Criteria For Every MCA Lead With Bank Statements

April 27, 2022
Small businesses are the backbone of our economy. They create jobs, provide goods and services, and generate income and wealth for communities. They are also the primary drivers of our economy. Each small business has unique needs. They need financing of different sorts. To keep their doors open and the products coming, a lot of small businesses turn to merchant cash advance loans. MCA loans are short-term loans that help small businesses achieve certain goals.

Unlike a traditional bank loan that requires collateral, MCA is an advance taken against Credit Card Sales. So, businesses with weak credit ratings can also obtain MCA.

What Are MCA Leads?

The first step in the MCA funding process is to identify prospective borrowers and determine which ones are the best fit for the loan. Small businesses interested to acquire an MCA loan are considered an MCA lead.

MCA leads can come from a variety of sources, including your current customers, digital ads, referrals, and other MCA lenders.

Hence, it’s imperative that they are well-verified in order to assess their abilities in loan repayment matters.

Evaluating MCA Leads Using Bank Statements

Evaluating MCA Leads

There are a lot of different ways to evaluate merchant cash advance leads.

A key method is to analyze their bank statements, which could reveal any business’s financial condition, primarily, its ability to repay a loan.

Here are a few questions you can ask that will help you determine the quality of the lead

  • How long has their business account been active?
  • Do they have outstanding loans?
  • If so, how are holding up with the repayment of the loan/loans?
  • What is their loan repayment history?
  • How much money do they owe on a monthly basis?
  • What is their monthly average revenue?
  • Is their money flow constant?
  • Do they have any past records of bankruptcy?
  • What are their gross sales

Examine the Leads’ Bank Statements, their Income & Expenses, and Financial Decisions, to get a good idea of their financial situation.

This will help you evaluate the leads’ ability to successfully repay the loans. It’s important to qualify leads in order to set the good ones apart from the bad.

Other Ways To Evaluate Qualified Leads

Whenever evaluating qualified leads for MCA, your top priority should be to verify the borrower’s ability to repay the loan.

In doing so, you need to focus on other ways besides bank statements.

Here are a few other criteria you need to keep in mind when qualifying leads for MCA loans -

  • Business’ History
  • Income Statement
  • Current & Projected FinancList item
  • Business Plan
  • Landlord Reference

  • Owner’s Investment

Criteria of Qualified Leads

Qualified Leads

A qualified MCA lead is someone who has shown a consistent, demonstrated ability to meet the credit requirements for a merchant cash advance.

That means every prospect without any major default on loan repayments or other credit obligations in the past; also indicating reliability to make future payments on time.

A qualified merchant cash advance Lead has a strong credit score, however, not necessarily a perfect score.

Here’s a list of Criteria that good quality leads generally have -

  • Most MCA lenders don't provide loans to small businesses aged less than a year. Usually, businesses find it the hardest to survive the first year.
  • The Business does not have any records of bankruptcy for at least the last 2 years.
  • The Business is looking for a quick loan.
  • The Business considers traditional forms of financing and is knowledgeable about Merchant Cash advances.
  • The Business must have a Gross Sales Revenue of $10,000 monthly.
  • The Business location must be within the Lenders' bounds.

Importance of Quality MCA Lead

As a Business Owner of an MCA company, you’re likely to rely on Quality Leads to diversify your investment portfolio.

The ability to provide fast cash to small businesses is an invaluable resource to make a good profit. But careless funding could turn into a significant liability instead of an asset.

In fact, if you aren’t careful, bad leads could destroy your business. That’s why it’s so important to find a high-quality MCA lead that you can trust.

How To Generate MCA Leads?

Qualified leads are your most important resource. That’s why it’s so important to identify qualified prospects fast. The earlier you identify a qualified lead, the easier it will be to acquire them.

The most important factor in identifying a qualified lead is the ability to qualify leads quickly and accurately.

You can find merchant cash advance leads from various sources. One of the most common ways is to place cash advance ads in newspapers, invest in vendors like us, and even on billboards.

MCA Leads

 To find out more about this lucrative method of lead generation, reach out to us. 

The best way to find merchant cash advance leads is to ask your existing customers if they would be interested in purchasing their existing outstanding balance with a cash advance.

Most customers will be willing to share their credit card information with you if you offer a better deal on their existing balance.

Some of the easiest ways to generate MCA Leads are

  • Telemarketing
  • Search Engine Optimisation (SEO)
  • Email Marketing
  • Social Media Marketing
  • Taking part in Online, Offline Communities
  • Trade Fair


When you’re evaluating MCA leads, one of the best ways to get a sense of their financial health is to look at their bank statements. Bank statements can tell you a lot about a person, including things like how much they spend, how much they owe, and how much they have on hand. You can get an idea of their ability to pay for recurring expenses. You can also look for signs of financial stress. This information can give you a valuable window into a potential MCA Lead’s financial health and can help you decide whether or not to move forward with a sales process.

When it comes to running a merchant cash advance business, leads are important. It's also important to identify whether or not the lead is qualified. Since a bad lead can lead to a bad transaction, causing your entire portfolio to be ruined. As a result, you must be extra careful about who you purchase your MCA leads.

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