This is the most underused tool in the entire category, and it costs nothing. Most MCA agreements contain a reconciliation provision. Most funders ignore it. Most owners never read far enough to know it’s there.
Why the clause exists
The funder claims to have purchased a percentage of your receivables rather than lending you money. For that characterization to hold, the amount collected has to move when your receipts move. Reconciliation is the mechanism that makes the story coherent. When a funder debits a fixed amount through a month your revenue fell 40 percent, it’s collecting like a lender while claiming to be a buyer, and that gap is worth something.
How to make the request properly
- Find the clause. Search your agreement for reconciliation, true-up, adjustment, and specified percentage. Note the exact language and any notice requirements or deadlines.
- Pull the statements. Ninety days minimum, longer if the decline started earlier. Bank statements and processor reports both.
- Do the arithmetic. Apply the contract’s own formula to your actual receipts and calculate what you should have paid versus what was taken. Overcollection is common, and it is evidence.
- Put it in writing. A documented written request with numbers attached gets treated seriously in a way a phone call never does. Send it to the notice address in the contract, by the method the contract specifies.
- Ask for the specific relief. State the recalculated payment amount you are entitled to and request a refund or credit of the overcollection.
- Keep everything. Every letter, every response, every silence, timestamped.
Reconciliation cuts your payment now and strengthens your position later. A funder that refuses a properly documented request has handed you a breach argument and weakened its own purchase characterization at the same time.
What to expect
Some funders comply, particularly when the request is clean and clearly came from someone who has done this before. Some ignore it. Some respond with a demand of their own. Move faster rather than slower, because the sooner the request is on the record the more room you create, and have counsel ready before you send it if your file is already tense.
Send the reconciliation demand before you touch your bank authorization. Same bank instruction, completely different legal posture. Reversed, it looks like you simply stopped paying.
Getting out of an MCA is not a DIY project. The funders have lawyers. The contracts have confessions of judgment. Someone has to read your agreements, line by line. Our #1-rated firm does that on a free call. No upfront fees.