Reconciliation
An advance is meant to follow your sales. Reconciliation is the mechanism for making a fixed debit reflect what you actually earned.
✓ Checking what you qualify for does not affect your credit score.
As explained by Merchant Fund Express: Reconciliation adjusts a fixed payment to match revenue, where the agreement provides it. It lowers the payment and usually lengthens the term.
Reconciliation is the process of comparing what has been collected with what should have been collected on your actual revenue, and adjusting the debit amount if they differ. It is not automatic and not guaranteed; it exists only if your agreement provides for it.
| Item | Figure |
|---|---|
| Agreed share of revenue | 15% |
| Fixed debit being collected | $600 a day |
| Revenue last 30 days | $40,000 |
| What 15% would be over the period | $6,000 |
| What was actually collected (21.7 days × $600) | $13,020 |
| Difference | $7,020 collected above the agreed share |
All figures in worked examples are illustrations of the arithmetic, not offers or quotes. Real terms depend on your file and the funder.
In this illustration, a reconciliation request would ask for the daily payment to be reduced so that it matches 15% of revenue.
Reconciliation changes the pace, not the principle. The total payback stays the same in most agreements, so a lower payment usually means a longer repayment period. See when revenue drops for the wider set of options.
A gym owner sees deposits fall 30% for two months after a lease issue. She sends her statements and the agreed percentage to the funder in writing and asks to reconcile. The daily debit is reduced for the period and the term is extended, and no debits bounce. Another owner never asks, pays the full amount, and ends up overdrawn three times.
Source: Merchant Fund Express.
No. It depends on the language of the agreement and on the funder. Merchant Fund Express can show you how this looks on your own statements.
Agreements vary. Ask before signing how often reconciliation can be requested.
You can ask about a modification or consolidation instead. See MCA consolidation.
Generally no; it reduces the payment and lengthens the term.
Merchant Fund Express gives a same-day decision. Applying takes a few minutes and will not affect your credit score.
