Common Questions

My MCA Payments Are Higher Than My Revenue. What Now?

When withdrawals were arranged against stronger months, a slow season can leave the daily or weekly debit taking more than the business collects. This page walks through how owners organize the numbers before deciding anything. Every business situation is different, and none of this is legal, tax, or financial advice.

Step one: put the whole picture on one page

• Each funder name, balance remaining, and payoff amount if stated
• Each withdrawal amount and whether it is daily, weekly, or a card holdback
• Total outflow to advances per week
• Average weekly deposits over the last three to six months
• Fixed costs that must clear each week, such as payroll, rent, and fuel

The gap between total weekly advance payments and what the business can support after fixed costs is the number every later conversation turns on.

Step two: read the reconciliation language

Most agreements set the withdrawal as an estimate of a percentage of receipts. If receipts fell, the reconciliation clause may allow a recalculation. Requests usually have a deadline and a required format, so the contract language matters more than the phone conversation.

Step three: understand the possible directions

• Restructuring adjusts the size, frequency, or length of payments on an existing advance
• Consolidation addresses several stacked positions through a single arrangement
• Settlement resolves a balance for an agreed amount, usually where the business is already behind
• Doing nothing generally leads toward default, added fees, and collection activity

Step four: gather documents before you call anyone

• All signed agreements and addendums
• Three to six months of business bank statements
• Processor statements if part of the payment is a card holdback
• A short written summary of what changed in the business and when

Owners who bring those items to a conversation usually get a far more specific answer than those working from memory.

How Merchant Program Solutions fits in

Merchant Program Solutions is a marketing and referral company. We are not a lender, law firm, or financial advisor, and we do not provide legal, tax, accounting, or financial advice. We collect basic information about your situation and, where appropriate, refer it to independent service providers who are responsible for their own services, fees, terms, and requirements. No outcome, approval, or result is promised.

This page is general information only and is not legal, tax, accounting, or financial advice. Every business situation is different.