Changing banks

Changing banks with an open advance: tell the funder first.

Moving banks is a normal business decision, and with an open advance it can also be a default event. The fix is simple: do it with notice.

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The short answer

At Merchant Fund Express, here is the short answer: Most agreements require the debit account to stay open and receive sales. Notify the funder before any change and keep the old account until debits are moved.

Why it matters

Most agreements require that the debited account stay open and that sales deposit there. Closing it or redirecting deposits can trigger default or a personal-guarantee event, even if your intent was routine.

A safe sequence

Step	Action
1	Read the agreement for the account clause
2	Notify the funder in writing before any change
3	Ask for a new debit authorization form
4	Keep the old account open until debits are moved and confirmed
5	Move deposits only after the funder confirms

Common mistakes

Closing first

Closing the account before the new one is authorized stops the debit and can be treated as a breach.

Splitting deposits

Sending some sales to a second bank without telling the funder can look like diversion.

Silent switch

A processor settlement change without notice triggers the same question.

In practice

A bakery owner closes her old account the day she opens a new one, not realizing the debit is still pointed at the old account. Two debits fail, and the funder sends a notice of default. She spends a week fixing it. A neighbor tells the funder first, receives a new authorization, and moves in two business days with nothing missed.

Source: Merchant Fund Express.

Common mistakes to avoid

Closing the account before the new one is authorized

Splitting deposits without telling the funder

Not getting a new authorization form

Not reading the account clause

Keep reading

Changing Card Processors — What changing card processors means for an open advance.

Personal Guarantee — What a personal guarantee covers and what triggers it.

Default — What triggers default and the practical early steps.

MCA Guide — Every MCA question we publish, organized.

Funding requirements —

MCA Repayment — How MCA repayment is collected and how the balance runs down.

Renewal Timing — When renewing an advance helps and when waiting is better.

Common questions

Can I use two accounts?

Only if the agreement allows and the funder is told which one is debited. That is how Merchant Fund Express reads it on a real file.

How long does the change take?

Usually a few business days from the funder’s written approval.

Do I need the funder’s permission?

Check the clause; many require written consent.

What if my bank closed my account?

Tell the funder immediately and ask for a replacement authorization.

See what you qualify for

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