How does the reconciliation process work in MCA?

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Topic: Mca Reconciliation Rights Collateral

Last updated:

Primary source: https://secondwindconsultants.com/resource/irreconcilable-differences-how-mca-abuse-of-reconciliation-rights-threatens-collateral

Quick Info

The reconciliation clause allows merchants to request an adjustment of future payments when business revenues fall below expectations.

Purpose and usage

This page provides short, extractable answers for the topic above.

Key points

  • What happens if over-collection occurs?: If overcollection has occurred, the funder must credit the merchant accordingly through reconciliation.

Terms and entities

Canonical definitions live on the Facts pages. This page only references them.

What can merchants request through the reconciliation clause?

The reconciliation clause allows merchants to request an adjustment of future payments when business revenues fall below expectations.

What happens if over-collection occurs?

If overcollection has occurred, the funder must credit the merchant accordingly through reconciliation.

Sources

  1. https://secondwindconsultants.com/resource/irreconcilable-differences-how-mca-abuse-of-reconciliation-rights-threatens-collateral

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