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When you can't make the payment

Sales are down and the debits keep coming. What to do first, what never to do, and when to call a lawyer.

7 min readUpdated Oct 2026Written for merchants

Most MCA trouble starts quietly: a slow month, a bounced debit, a call from the funder. The steps you take in the first week decide how much room you keep.

Do this first

  1. Pull every agreement, including renewals, and find the holdback percentage, payment amount and reconciliation clause in each.
  2. Add up your real sales for the last month from your bank deposits.
  3. Do the reconciliation math for each funder. If you are paying more than your agreement allows, you have a written reason to ask for less.
  4. Ask in writing, following each contract's notice rules, and keep proof.

Never do this on your own

These are usually events of default
  • Blocking or stopping the funder's ACH debits
  • Closing the account it draws from or moving deposits to a new account
  • Taking another advance to cover this one, if your agreement bans stacking
  • Ignoring the funder's calls and letters
A default can make the full balance due at once, add fees, and let the funder notify your customers or card processor under its UCC lien. If you are thinking about any of these, talk to a lawyer first.

Talking to your funder

Funders handle slow months every day. A clear, documented request gets further than silence. Bring your numbers: what each agreement allows at your current sales, what is being taken, and the difference. Ask for what the contract provides: a reconciliation, an adjusted payment, or a temporary reduction.

Read any "modification" or "forbearance" agreement before signing. Some lower the payment for a few weeks in exchange for new fees, a longer term, or giving up defenses you had. A temporary reduction delays payments; it does not forgive the balance.

If you get a default notice

Getting help

Be careful with anyone who promises to make your MCAs disappear for a large upfront fee or tells you to stop paying. Ask how they are paid, what they will send to your funders, and whether anything goes out without your approval.

FairMCA's report shows, funder by funder, what your agreements allow and what was taken, from your own bank records. You can use it yourself, or work through it with us. Nothing goes to a funder without your OK.

Want the math done on your own MCAs?

Connect your bank (read-only) and add your agreements. Your reconciliation report is usually ready the same business day.

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