This article is general information, not legal advice. Whether you can get a lower payment depends on the wording of your own agreement. The checklist below is a practical guide, not a legal form. If you're close to default, talk to a business attorney.
What reconciliation is
Many merchant cash advances buy a set percentage of your future receivables, called the specified percentage. Collecting an exact percentage every day is impractical, so most agreements set a fixed daily or weekly payment that estimates it, based on the sales you expected when you were funded. Reconciliation is the process of comparing that fixed payment with your actual sales, and adjusting it if the two have drifted apart.
Not every advance works this way. Some agreements set a fixed payment without tying it to a percentage of sales, and some don't include a reconciliation right at all. That's why the first step is always the agreement itself.
When sales fall, the fixed payment can end up taking far more than the agreed percentage. That's the gap reconciliation exists to close.
The math in one example
Say your agreement buys 10% of your receipts. Your payment was set at $500 per business day, based on expected sales of $5,000 a day. Then sales fall to $3,500 a day.
10% × $3,500 = $350 a day
Now look at what that does to the time left. With $30,000 remaining:
| Payment | Payments left |
|---|---|
| $500 a day (current) | 60 |
| $350 a day (reconciled) | about 86 |
Example only, not an offer.
The balance stays $30,000 either way. The advance just takes longer to finish. Reconciliation is about matching the payment to your sales, not about reducing what you owe.
Check what you're actually paying
Before you ask, work out how far the fixed payment has drifted from the agreed percentage. Take your average daily sales from your recent statements, and divide your payment by it.
$500 ÷ $3,500 ≈ 14.3%
In the example, the agreement says 10%, but the fixed payment is now taking about 14.3% of what comes in. That difference, shown with statements, is the heart of a reconciliation request.
Example only, not an offer.
If your advance is repaid as a share of card sales through your processor rather than a fixed debit, the payment already rises and falls with sales, so there's usually nothing to reconcile. Our guide to POS capital and split funding explains how those holdbacks work.
Find the clause in your agreement
Search your agreement for "reconciliation," "adjustment" or "true-up." If you find it, note what it requires:
- which statements you must send (bank, card processing, or both)
- which period they must cover
- how notice must be sent, and to whom
- how often you're allowed to ask
- how quickly the funder says it will respond, if at all
Your specified percentage should be stated in the agreement too. If you can't find either, ask the funder in writing for a full copy of the signed agreement. Our guide to reading your MCA contract shows where these terms usually sit.
What to send
Keep the request short, factual and easy to check. Include:
- your business name, the agreement date and the funder's agreement or account number
- the clause you're relying on, by section number
- the period you're asking about, and your actual receipts for it
- bank or card processing statements for that period, as PDFs from your bank or processor
- the adjusted payment you're asking for, and the math behind it, in one line, for example: "Agreed percentage 10% × average daily receipts of $3,500 = $350 a day requested"
Send it the way the agreement's notice section says, whether that's email, a portal or mail. Keep a copy and proof of delivery. If the funder asks for more documents, send them promptly, and keep a note of every call: who you spoke with, when, and what was said.
Clean statements make the request easier to review. Our guide to what your bank statements show an underwriter explains what a reviewer will look at.
What happens next
The funder reviews the request against the agreement and your statements. Some adjust the payment going forward. Some reconcile periodically, looking back over a past period and settling up. Some agreements also provide a credit for amounts collected above the agreed percentage, but only if the clause says so.
Nothing is automatic, and the timing varies. Keep paying as agreed while the request is reviewed, unless your attorney advises otherwise. When a change is approved, get it in writing: the new payment, the date it starts, and how long it lasts before the next review.
Following up
If you don't hear back within the time the agreement gives, or within a week or so if it doesn't say, follow up in writing and refer to your first request by date. Attach the newest statements so the funder is looking at current numbers. Keep every reply in the same folder as your agreement.
Read whether your clause works in both directions. Some reconciliation terms allow the payment to be reviewed again later, which can bring it back up if sales recover. Knowing that up front avoids a surprise a few months on.
If your agreement has no reconciliation clause
You can still ask. Write to your funder, explain what changed, attach recent statements, and propose a modified payment based on your current sales. Be concrete: the payment you can carry, how long you expect the dip to last, and when you'll send updated statements. Funders don't have to agree when the contract doesn't require it, but a clear, documented request made before a payment bounces is far easier to say yes to than a request made after.
If you get a modified payment this way, get the terms in writing, including how long it lasts and what happens afterward. If you're close to default, or the funder's reply includes a new agreement to sign, consider independent legal advice first.
What to avoid
- Taking a new advance to cover the payment. It adds a second payment to the same lower sales. See how many MCAs is too many.
- Going quiet. Ignoring the funder's calls and emails makes a modified payment less likely, not more.
- Stopping or blocking payments on your own. Many agreements treat that as a default. Our guide to MCA debits and the ACH explains why, and you should talk to a business attorney before taking that step.
- Sending a request without the numbers. A request with statements and math attached is much easier to review.
See your new payoff date
A lower payment moves your payoff date out, and it changes what you can plan around each month. Once a change is approved, update the advance in the free Bylt Capital tracker: edit the payment, and type in the balance from your funder's latest statement. The tracker then estimates your new payoff date and updates your monthly total across every advance.
If you have several advances and the problem is the total rather than one payment, a reconciliation may not be enough on its own. See consolidation vs. refinancing, and if you've already missed payments, what to do first if you can't make your MCA payment.
What to do next
- Find the reconciliation clause and note what it requires.
- Gather statements for the period it asks for.
- Send a written request with the math, following the notice method.
- Keep paying as agreed while it's reviewed, unless your attorney advises otherwise.
- Update your balance and payment in the free tracker once a change is approved.
Founder and Chief Executive Officer, Bylt Capital
Daniel Morgan is the Founder and Chief Executive Officer of Bylt Capital, a direct provider of merchant cash advances, lines of credit, and equipment financing for small and mid-sized businesses. He began his career in merchant cash advance origination, where he advised business owners on funding options before taking on a team leadership role. He then moved into syndication, co-investing in advances alongside established funders, and built that into direct funding of smaller transactions. He later raised institutional capital to found Bylt Capital.
Having worked across origination, syndication, and underwriting, Daniel brings a full-cycle view of business funding. He leads Bylt Capital's mission to give business owners clear, transparent information about their financing before they commit.