Personal Guarantee Clause
Almost every MCA contract includes a personal guarantee. What it actually obligates you to, when it's enforced, and the negotiating room most merchants don't know they have.
Fundnode contracts
MCA contract clauses, analyzed honestly.
Most merchants sign MCA contracts without reading them. Brokers don't explain the mechanics. Funders bury the important clauses in section 8 or later. This is the only public clause-by-clause analysis we've seen.
For each clause: what the contract actually says, what it means for you, when it gets enforced, and what you can negotiate before signing. CC BY 4.0 — share freely with attribution.
Clause analyses
Confession of Judgment (COJ)
The clause that lets a funder obtain a court judgment without litigation if you default. Banned in some states, common elsewhere. What it does to your bank account and how to identify it before signing.
Reconciliation Clause
The clause that should let you adjust daily ACH when revenue drops. The difference between real reconciliation and meaningless contract language. The funders whose reconciliation actually works.
Default and Acceleration Clause
What triggers default in MCA contracts and what happens immediately when it does. The 5 most common default triggers most merchants don't realize they're violating.
ACH Debit Authorization
The operational mechanism behind daily debits. What broad authorization language allows funders to do, NACHA revocation rights, NSF cascade rules, and the same-day ACH timing.
Anti-Stacking Clause
Why a second MCA from a different funder defaults your first — even if you're current on payments. How funders detect stacking, when they enforce, and the rare path to contractual consent.
Choice of Law and Venue
Why MCA funders pick New York or Delaware law. What it means for your defensive options, when home-state law overrides, and what you can negotiate.
Attorney's Fees Clause
How attorney's fees clauses add 20-40% to a default obligation. The one-way nature of typical clauses, how courts review reasonableness, and state-by-state limits.
Important context
This content is for educational purposes — not legal advice. MCA contract language varies by funder and changes over time. If you're facing a specific contract decision, default, or litigation, consult a small-business attorney who specializes in commercial financing or MCA-specific work.
Examples and language patterns are anonymized aggregates from contracts we've reviewed via merchants using the Fundnode qualification funnel. We do not publish specific funder contracts.