Quick answer
Most MCA contracts include a 'reconciliation' or 'true-up' clause that lets you request reduced payments when revenue drops materially — but you have to request it formally, in writing, with bank statements showing the drop. Funders vary widely on willingness to grant reconciliation. NEVER stop paying without notice — that triggers default. Always communicate, document, and request restructure BEFORE missing payments.
Full answer
When a shutdown, natural disaster, or sudden revenue collapse hits, your MCA payment becomes one of the most painful line items because daily/weekly ACH remits keep pulling regardless of whether revenue is coming in. The good news: most contracts have built-in relief mechanisms. The bad news: you have to actively request them — they're not automatic.
Mechanism 1: Reconciliation clause (most contracts have this). Most modern MCA contracts include a reconciliation or 'true-up' clause stating that if your actual revenue is materially lower than the projected revenue used to size the daily holdback, you can request a downward adjustment of the daily remit. The clause typically requires: (a) written request with supporting bank statements, (b) waiting period of 1-2 weeks for the funder to review, (c) funder discretion on whether to grant. Some funders grant readily, others delay or refuse. Always invoke this clause IN WRITING with documentation.
Mechanism 2: Hardship pause / forbearance. Many funders have informal 30-90 day payment pause or reduced-payment programs they extend in disaster scenarios (COVID-19 shutdowns, hurricanes, fires, civil unrest). These are usually not in the contract — they're discretionary relief programs that the funder rolls out. Greenbox, Credibly, OnDeck, and Forward Financing all offered formal COVID forbearance programs in 2020. Ask your account manager directly: 'do you have a hardship program for [specific event]?'
Mechanism 3: Restructure / extend. If the revenue drop is sustained (3+ months), reconciliation alone won't be enough. The next path is restructure: adding 3-6 months to the payback term in exchange for reduced daily remits. Most funders will discuss this, but they typically want to see (a) evidence the revenue drop is sustained, (b) a clear recovery plan, (c) sometimes additional collateral or personal guarantee language. Restructure preserves the contract; it does not trigger default reporting.
Mechanism 4: Refinance into a longer-term product. If reconciliation/forbearance/restructure don't get you to a sustainable payment, the next option is to refinance the remaining balance into a longer-term product (SBA loan if you qualify, term loan, or consolidation MCA). This is operationally harder but the only path back to monthly (not daily) payments. Talk to a broker or your funder's restructuring team.
What NOT to do. (1) Do NOT stop paying without notice. Unauthorized payment stoppage is a contractual default that triggers acceleration, UCC enforcement, frozen merchant processing, and potential lawsuit. (2) Do NOT close your bank account to stop the ACH — funders treat this as fraud and most have aggressive enforcement playbooks. (3) Do NOT take a stacking MCA to make the current MCA's payments — this is a contract violation on the existing deal and starts a debt spiral. (4) Do NOT ignore funder calls/emails — silence accelerates the default timeline.
Documentation checklist for a hardship request. (a) Cover letter (1-2 paragraphs) describing the event and timeline. (b) Last 3 months of business bank statements showing the revenue drop. (c) Last 12 months for context if recent statements look anomalous. (d) Photos / news links if disaster-related (insurance claim numbers help). (e) Recovery plan: when do you expect revenue to return and to what level. (f) Specific request: 'I'm requesting [reconciliation to X% holdback / 30-day pause / 3-month term extension] effective [date].'
Realistic expectations on funder response. Some funders (Greenbox, Forward Financing historically) grant reconciliation requests within a week with reasonable documentation. Some (more aggressive shops) delay, demand more documentation, or refuse outright. If your funder refuses any relief, consult an MCA-experienced attorney before missing a payment — there may be state-specific consumer protections or contract enforceability arguments available, depending on your state and the contract language.
Bottom line: communicate early, document everything, invoke contractual reconciliation rights in writing, and never go silent. Funders prefer restructured deals over defaults because default recovery costs them money. The merchants who lose worst in crises are the ones who go silent and hope.
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Methodology. Fundnode is an independent funding-platform that scores merchants against our 100-funder database. We earn referral fees from funders when merchants apply via Fundnode. Editorial rankings and answers are independent of fee structure. Updated 2026-06-25.