Measure the gap
Take your last three months of deposits and your total MCA withdrawals for the same period. Divide withdrawals by deposits. Then compare that percentage with the "specified percentage" or "holdback" stated in your agreement.
If you are paying far more than the agreed percentage of actual receivables, your agreement's reconciliation provision may give you a basis to request an adjustment.
Options to explore
- Reconciliation request. A written request, with bank statements, asking the funder to adjust payments to the agreed percentage. See our reconciliation guide.
- Modification. A negotiated, temporary or permanent lower payment.
- Settlement. A negotiated payoff, where funds and the funder allow.
Try our MCA cost calculator to see what share of your revenue goes to advances.
Questions
Does every MCA have a reconciliation clause?
Many do, but terms vary widely. Some require specific documents and deadlines. Read the clause carefully or have it reviewed.