Lost contract
A cancelled contract changes what your business can carry. Funding can bridge the gap to replacement work, but only if the payment is sized to the revenue you have now, not the revenue you had.
✓ Checking what you qualify for does not affect your credit score.
Updated October 13, 2026 · Merchant Fund Express
After a contract cancellation, the right funding request is the one your remaining revenue can repay. Funders read your most recent statements, so the drop will show; the cleanest file is one where you have already done the arithmetic on the new baseline and asked for an amount that fits it.
Funding fits when it bridges a defined gap: payroll while you onboard a replacement client, final materials to finish other jobs, or a short slow period with new work already signed. It does not fit when it would only delay a business that can no longer cover its fixed costs. That distinction is the whole decision.
Start from what deposits look like without the contract, then decide what share of that you can commit to a payment. A simple method:
The payment burden calculator does the same arithmetic in one screen.
A staffing agency deposited $95,000 a month until a warehouse client ending in September cancelled a contract worth $30,000 a month. The new baseline is $65,000 a month, about $15,000 a week. Before the cancellation, the owner had planned to request $75,000.
Assumptions: factor rate 1.30, 40 weekly payments, first payment Monday, November 2, 2026, last payment Monday, August 2, 2027, and a payment ceiling of 12% of weekly deposits.
| Original plan | Re-sized | |
|---|---|---|
| Weekly deposits | $21,923 (old) | $15,000 (new) |
| Request | $75,000 | $55,000 |
| Total repayment (× 1.30) | $97,500 | $71,500 |
| Weekly payment (÷ 40) | $2,437.50 | $1,787.50 |
| Share of new weekly deposits | About 16.3% | About 11.9% |
The original $75,000 would take about 16% of every week's deposits on the new revenue. Re-sized to $55,000, the payment fits under the 12% ceiling ($15,000 × 12% = $1,800 a week, and $1,800 × 40 = $72,000, which supports roughly $55,000 at 1.30). The owner keeps $20,000 of borrowing room for when a replacement client is signed.
All figures in worked examples are illustrations of the arithmetic, not offers or quotes. Real terms depend on your file and the funder.
Two or three months of statements on the new baseline often produce a cleaner file than applying in the month of the loss, because the reviewer can see the business stabilizing instead of guessing. If you can cover the gap with a cost cut, a delayed purchase or collecting what the old customer owes, that time is usually worth more than the money. If a big replacement contract is already signed, read funding for a new contract start.
Run your new baseline through the eligibility check, which starts with no effect on your credit. If the re-sized number still fits a real need, apply with the explanation and the replacement work attached.
Often, yes, if the remaining revenue can carry the payment. Funders read recent statements, so size the request to the new baseline and explain the change up front.
Work backward from a payment you can carry on current deposits. Weekly deposits times your chosen share, times the number of payments, divided by the factor rate, gives a realistic amount.
No. The drop is visible on statements. A clear explanation with any replacement work attached reads far better than an unexplained decline in deposits.
The existing payment is the first problem to address. Read about reconciliation and when revenue drops before adding a new position.
When the remaining revenue no longer covers fixed costs, when money owed by the old customer is in dispute, or when the funding would only delay a decision about the business.
Same-day decision. Applying takes a few minutes and will not affect your credit score.
