Specified Percentage
The percentage of future receivables an MCA agreement says the funder has purchased, for example, 15 percent of all revenue until the purchased amount is delivered. It is the contractual basis for the daily payment and the number a reconciliation trues the payment back to.
Why it matters
Courts examining whether an MCA is a true purchase look hard at whether collections actually track this percentage. Funders that ignore it in practice, collecting fixed amounts regardless of revenue, undermine their own contract's legal characterization.
