Understanding how a SAPI Merchant Cash Advance (MCA) impacts your credit score is essential for making informed financial decisions. This guide answers common questions about credit checks, defaults, and business credit reporting, so you know exactly what to expect.

At SAPI, we assess creditworthiness using multiple factors, but a personal credit score is not the only criterion.

Our evaluation process includes:

✔ Soft credit checks on the business owner’s personal credit – These do not impact your credit score but help us assess financial responsibility.
✔ Business credit checks (for larger advances) – We may review your company’s credit history through Experian Business, Equifax Business, or Dun & Bradstreet (D&B).

Since our funding is revenue-based, we focus primarily on business performance, cash flow, and transaction volume rather than relying solely on credit scores.

✔ Soft credit checks do not impact your score – We conduct soft credit inquiries as part of our evaluation, which will not be visible to other lenders or affect your credit rating.
✔ No hard credit checks for most applications – Unlike traditional loans, applying for an MCA with SAPI typically does not involve a hard credit inquiry.
✔ Business credit history may be checked – For larger advances, we assess business credit profiles, but this does not affect personal credit scores.

We strive to minimize any negative impact on your credit and ensure you have all the information needed to make informed financial decisions. Taking out a SAPI MCA may affect your credit score, so we encourage careful consideration before proceeding.

A SAPI MCA can contribute positively to your business credit score if repayments are made on time. However, missed or late payments could have a negative impact.

We strongly encourage responsible borrowing and timely repayments to support your financial health. If you are looking to build business credit, timely repayment of your MCA can be beneficial.

Defaults on MCA can have consequences:

✔ For limited companies – If your business is a limited company, a default will not appear on your personal credit file. However, if legal action is taken (e.g., a court judgment), it could impact your personal financial standing.
✔ For non-limited company borrowers – If you are a sole trader or partnership, a default may be reported to personal credit agencies, which could lower your credit score.
✔ Business credit impact – We report missed payments to business credit bureaus, which can affect your company’s ability to secure future financing.

We understand the importance of maintaining a strong credit profile and encourage proactive financial management to stay in control of your obligations. To avoid financial strain, we encourage proactive cash flow management and open and early communication with us if challenges arise.

Yes, we can provide a completion statement upon request. Simply reach out to our team, and we’ll be happy to assist you.

At this time, we are unable to provide credit references. We sincerely apologise for any inconvenience this may cause.

At SAPI, we prioritise transparent and responsible financing. We assess business performance holistically, offer flexible repayment structures, and minimise unnecessary impact on personal credit. Whether you’re applying for an MCA or managing repayments, we are here to support you with financial solutions tailored to your business needs.

✔ Applying for a SAPI MCA does not typically affect your credit scores.
✔ We conduct soft personal credit checks but focus primarily on business performance.
✔ Timely repayments can help strengthen your business credit score.
✔ Defaults can impact business credit and, in some cases, personal credit (for non-limited companies).

Need more details? Contact us today for personalised support.