Five practical first steps
- Gather your agreements. Find every MCA contract, addendum, and any guarantee you signed. You need to know exactly what you agreed to.
- Pull 3 to 6 months of bank statements. These show what your receivables actually are, which matters if your agreement includes a reconciliation provision.
- Add up every withdrawal. Total the daily and weekly payments across all funders and compare them with your deposits.
- Read the reconciliation clause. Many MCAs allow payments to be adjusted to a percentage of actual receivables. See our guide to reconciliation clauses.
- Keep every letter, email and court paper. Do not ignore a lawsuit or legal notice. Deadlines may apply.
What to avoid
- Taking another advance just to cover the current payments
- Closing or moving bank accounts to block withdrawals without understanding the consequences
- Signing new documents under pressure without reading them
- Paying upfront fees to anyone who promises guaranteed results
How Saldo Vita can help
We review your agreements and cash flow, build a realistic plan and communicate with funders on your behalf. Any proposed resolution is reviewed with you before acceptance.
Questions
What happens if I default on an MCA?
It depends on your agreement. Common consequences include the full balance being declared due, collection activity, lawsuits, enforcement of a personal guarantee and notices under UCC filings.
Can I just call my funder myself?
Yes. Some funders have internal hardship processes. Prepare your documents first and get any agreement in writing.