MCA Settlement Reviews
Menu
MCA Settlement Reviews

The MCA reconciliation clause: how to check and request an adjustment

Review your MCA reconciliation formula, required records, request procedure, and disputed responses. Payment adjustments depend on the contract.

Updated

  • Home ·

  • The MCA reconciliation clause: how to check and request an adjustment

By Anonymous MCA industry contributor Research, writing and editorial review · MCA sales background

Reconciliation is a contractual process for comparing remittances with the agreed share of actual revenue. The formula, eligibility, records, deadlines, and available adjustments depend on your agreement.

Updated 2026-09-18

Sources and scope

Read the calculation before requesting relief

Identify the defined revenue, specified percentage, measurement period, and treatment of refunds or credits. Distinguish a backward-looking reconciliation from a change to future debits.

Prepare the request

Follow the notice method and document requirements in the contract.

  • Locate the clause and any amendments

  • Calculate the relevant revenue and remittances for the same period

  • Collect the requested bank and processor records

  • Send the calculation and request to the specified address

  • Keep delivery evidence and calendar any stated response period

If the response is disputed

Keep the request, supporting records, and response. Davis v. Richmond Capital Group allowed certain allegations concerning reconciliation and loan characterization to proceed at the pleading stage. It did not establish that every refusal proves an unlawful loan. See also the Richmond Capital lawsuit note and the three-factor cluster on the lawsuit hub.

How Second Department opinions treat reconciliation language

Reconciliation (or remittance adjustment) is one of the three factors New York panels often weigh when sorting a receivables purchase from a loan. Caption-specific notes on this site:

Full literacy: Merchant cash advance lawsuit. A denied or ignored request still does not, by itself, rewrite your payment schedule. Whether that clause is discretionary is one of the three factors courts use to decide whether an advance is really a loan; see our guide on whether are MCA loans legal.

Do not confuse a request with an approved change

A submitted request does not itself authorize you to stop paying or change debits. Ask for the calculation and any approved adjustment in writing. Review a new agreement for added fees, guarantees, or waivers.

Common questions

Does every MCA have this clause?

Do not assume so. Read your agreement and ask counsel about missing, discretionary, or disputed provisions.

Does requesting reconciliation prevent default?

The request does not automatically waive other obligations or resolve an existing claimed breach. Check the contract and obtain advice if default is disputed.

Does a 40 percent revenue drop mean a 40 percent payment cut?

Not necessarily. The defined revenue, comparison period, prior collections, and contractual formula determine the calculation.

Takeaway

Use the contract’s formula and procedure. No universal cost, response time, payment reduction, or legal outcome is promised.

Compare the firms we reviewed

All reviews →

Coastal Debt Resolve Company review Spergel Company review Business Debt Insider Company review Second Wind Consultants Company review Business Debt Law Group Company review Regroup Partners Company review

Talk to our featured first provider

Request a free consultation from Coastal Debt Resolve. Confirm fees, service scope, and any legal representation in writing.

Get a free review

Also comparing providers? Read our Business Debt Insider review, and confirm any engagement terms directly with BDI.

More guides