Sales dropped: what to do in the first week

Sales fall for many reasons: a slow season, a lost customer, a closed road, a broken oven. The MCA payment does not know that. It keeps coming out on the same day for the same amount. What you do in the first week sets up everything after it.

Why week one matters

Many MCA agreements tie your payment to a percentage of your sales, then turn that percentage into a fixed daily or weekly debit to keep things simple. Many of them also include a reconciliation clause that lets you ask for the debit to be adjusted when sales change. The clause usually has rules about timing, paperwork and who you tell. Waiting a month while you hope sales bounce back can cost money you may not get back, and can make the request harder to prove.

This guide is a plan, not advice. Your agreement controls. If anything below conflicts with its exact wording, follow the agreement and ask a lawyer.

The seven days

Day 1: Breathe and open the agreement

Find the contract and read three things: the specified percentage, the reconciliation clause and the Notices section. Write down the section numbers. If you cannot find a reconciliation clause, that is useful to know too. See Reading your MCA contract.

Day 2: Gather the statements

Download bank statements for every account the agreement covers, from the day you signed to today. Add card processor statements if you take cards. Save them in one folder with the dates in the file names.

Day 3: Find your real sales

Add up the deposits that count as sales. Leave out transfers between your own accounts, loan proceeds, refunds and anything else your contract's definition of receipts excludes. The guide What counts as receipts walks through the usual gray areas.

Day 4: Do the comparison

Multiply your receipts by the specified percentage. Compare the result with what was debited. The next section shows how.

Day 5: Write the request

Use the request letter. Follow the Notices section for where and how to send it.

Day 6: Send it and save proof

Keep the sent email, the tracking number or a screenshot of the portal after you submit. Put the funder's answer deadline on your calendar.

Day 7: Plan for a slow answer

Look at your cash for the next four weeks. Which bills come first? Which customers owe you money? If the payment is still going to be hard, read When you can't make the payment before the next debit date, not after.

What the percentage allows

Here is the comparison with example numbers. The fixed weekly debit was set when sales were higher. The percentage in the agreement did not change, but your sales did.

In this example the agreement says 12% of sales, but the fixed debit now takes about 20.0%. That gap is what a reconciliation request is about. Use the overpayment calculator or the steps in Your real holdback percentage with your own numbers. If your math shows the funder took no more than the percentage allows, a reconciliation will not lower the payment, and the conversation becomes a payment-plan conversation instead.

Writing the request

Keep it short, factual and in the agreement's own words. State the period, the percentage, your receipts and the amount debited. Attach the statements. Ask the funder to confirm receipt in writing. Here is a short version for the email part of a two-channel send:

Subject: Reconciliation request, agreement dated [agreement date]

Hello,

Our sales have dropped. Under Section [section number] of our agreement, we are asking for a reconciliation for [start date] to [end date]. Our statements are attached. Please confirm you received this and tell us what you need to review it.

Thank you,
[Your name], [Business name]

A template, not legal advice. The full letter in the request guide has more detail. Use your agreement's wording for the clause name.

Keep paying while you ask

If a debit will not clear because the account is short, tell the funder before the debit date, in writing, and ask what it can do. Silence usually makes things worse.

Keep everything in writing

• Follow up every phone call with a short email saying what was said.
• Save every email, letter, text and portal message in the same folder as the statements.
• Do not agree to a new payment, a new account or a new document on the phone. Ask for it by email first.

More on calls in Calling your funder.

When to call a lawyer

Talk to a lawyer licensed in your state, ideally one who handles MCA disputes, if any of these happen:

• A default noticeAny letter or email that uses the word "default" or "acceleration."
• A lawsuit, court papers or a confession of judgmentCourt deadlines are short. Do not wait for the next letter.
• A lien notice or a letter to your customers or processorSomeone may be told to send your sales money somewhere else.
• A demand on you personallyIf you signed a personal guaranty, read The personal guaranty in your MCA first.
• A funder that refuses or ignores a written requestA lawyer can tell you what your agreement and local law allow.

FairMCA is not a law firm and cannot give legal advice. A slow week does not decide anything. A week of organized records can make every later step easier.

Education only, not legal advice. Agreements differ; your contract's exact wording controls.