What is MCA reconciliation?

Reconciliation is a contract provision that lets your daily ACH amount adjust downward when your business revenue drops. The original deal might be priced at 12% of daily deposits — if your monthly deposits drop, the daily ACH (and the term) should reset to match. Without reconciliation, you keep paying the original daily amount even when your revenue can't support it — which is the #1 path to default.

Do all MCA funders offer reconciliation?

Most include some form of reconciliation language in the contract. The gap is enforcement. Strong funders (Greenbox, Credibly, Accord for established files) honor the language. Weaker shops include the language but make the request process slow, paper-heavy, or contingent on prior monthly reporting most merchants don't do. The contract says yes; the practice says 'depends'.

What's the difference between true-up and reconciliation?

True-up is a one-time correction at month end where the funder reconciles what you paid vs what you should have paid based on actual deposits. Reconciliation is the ongoing right to request a daily ACH adjustment when revenue drops materially. Some contracts use the terms interchangeably; some use both. Read the contract — the operating mechanic matters more than the label.

What documentation will I need to request reconciliation?

Almost always: a current month bank statement plus the prior 2-3 months for trend. Often: a brief operator letter explaining the drop (seasonal, lost contract, equipment issue). Sometimes: tax returns or P&L. The faster funders process this in 5-7 business days. The slower ones take 3-4 weeks — and by then you may have defaulted on the original schedule.

How do I negotiate stronger reconciliation language before signing?

Three things to push for: (1) automatic monthly true-up based on a percentage trigger (e.g., 'when deposits drop 20%+ from baseline, ACH auto-adjusts'); (2) a maximum review turnaround stated in days; (3) the right to a partial pause (1-2 weeks of zero ACH) during documented disasters (storm, equipment failure, key staff loss). Most funders won't agree to all three, but they'll often agree to one. The ask itself signals you understand the contract.

MCA Reconciliation Policies, Ranked — Who Actually Adjusts (2026)

Reconciliation is the contract provision that protects you when revenue drops. Most funders include the language. Fewer honor it cleanly. Here's the honest ranking of who does, who doesn't, and how to push for stronger terms before you sign.

TL;DR

Reconciliation is the most important MCA clause most merchants don't read. Greenbox, Credibly, and Accord have the cleanest reconciliation processes. OnDeck doesn't need it (term loans have fixed payments). Many smaller MCA specialty shops include reconciliation language but make the request slow or documentation-heavy. Before you sign anything, ask: what does reconciliation look like in practice, and what's the review turnaround?

Why reconciliation matters more than the factor rate

Most MCA merchants compare factor rates: 1.30 sounds better than 1.40, so the merchant picks 1.30. But the factor rate is the headline. Reconciliation is the safety net. A 1.30 factor without reconciliation can kill a business that a 1.40 factor with strong reconciliation would have saved.

Here's why: MCAs are priced on average daily deposits. Funder underwriters look at 4-6 months of bank statements and set the daily ACH at ~10-15% of average daily deposits. That math works when revenue is steady. When revenue drops — seasonal slowdown, lost contract, storm damage, key staff illness — the daily ACH stays the same while deposits drop. Suddenly the daily ACH is 20% or 30% of deposits, not 10-15%. That's when merchants default.

Reconciliation is the contract right to ask for an ACH adjustment when this happens. The strong version: revenue drops 20%+, the daily ACH automatically resets to the new 10-15% target, the contract term extends to keep the funder whole. The weak version: you can request a review, the funder might respond in 2-4 weeks, and you keep paying the original schedule meanwhile.

How we ranked the funders

Three dimensions:

Contract clarity — does the language clearly describe when reconciliation triggers, what the merchant must submit, and what the funder will do?
Process speed — how fast does a reconciliation request actually get reviewed? The window between "I'm in trouble" and "you've given me relief" is critical.
Honored vs. deflected — do they actually adjust when the documentation supports it, or do they find reasons to deflect? This is the gap between what the contract says and what the funder does.

The ranking

Funder	Contract	Process	Practice
Greenbox Capital	Clear	5-7 business days	Honored on documented drops
Credibly	Clear	5-10 business days	Honored; API submission helps
Accord Business Funding	Clear	7-14 days	Honored; built for B/C-paper realities
CFG Merchant Solutions	Clear	10-14 days	Compliance-driven, deliberate
NewCo Capital Group	Standard	10-21 days	Best for high-revenue files
Smaller specialty shops	Varies	2-4 weeks (or longer)	Documentation-heavy deflections common
OnDeck	N/A (term loan, fixed)	Use modification request instead	Honored; predictable
Bluevine	N/A (LOC, interest-only on drawn)	Reduce draws when revenue drops	Structural — no reconciliation needed

The four contract questions to ask before signing

Don't take the broker's word for any of this. Read the actual contract. Or have us read it. Either way, here are the four questions that matter:

What triggers reconciliation? The strongest contracts trigger at a 20%+ revenue drop month-over-month. The weakest trigger only at "material adverse change" (an undefined lawyer phrase). Push for a specific percentage.
What documentation do I submit? The strongest contracts require 1 month's bank statements. The weakest require 3 months + tax returns + a P&L. Each additional requirement is delay built in.
What's the review turnaround? The strongest contracts commit to 5-7 business days. The weakest say "reasonable time" (also undefined). Get a number.
What happens during the review? The strongest contracts pause or reduce the ACH while reviewing. The weakest keep the original ACH running until the review concludes — which is when most defaults occur. Push for at least a partial pause.

The honest reality of reconciliation enforcement

Three things experienced ISOs and MCA workout attorneys all know, that brokers rarely tell merchants:

Reconciliation favors documented businesses. If your monthly P&L is in QuickBooks or Xero, reconciliation requests get fast attention. If you're running on hand-written invoices and a checking account, the "documentation requirements" will eat you. Set up bookkeeping before you sign an MCA.
The contract is the floor, not the ceiling. Funders sometimes adjust outside the contract terms when they trust the merchant. Strong communication, honest call to the funder when revenue starts dropping, and a real plan to recover all increase the odds of getting a workout. Hiding from the funder when you can't pay almost always ends in default.
Reconciliation is not a renewal. Some brokers push merchants to take a renewal MCA when they should be asking for reconciliation. Renewal means a new advance + new commissions + restart of the factor rate clock. Reconciliation is an adjustment to the existing deal, no new commission, no new factor. Always try reconciliation first.

What to do if a funder refuses to honor reconciliation

Three escalation paths, in order:

Document everything. Every request, every response, every promised turnaround the funder missed. Save emails. Take screenshots of texts. Date everything.
Escalate to the funder's legal or compliance team. Send a written request specifically citing the reconciliation clause of the contract and asking for review outside the operations queue. Many funders have separate legal/ compliance teams that move faster than the front-line workout desk.
State Attorney General complaint or commercial litigation attorney. In states with commercial financing disclosure laws (CA, NY, UT, VA, CT, and increasingly FL and TX), the AG has jurisdiction over funder conduct. A commercial litigation attorney can often negotiate a workout once the funder understands the issue is going to a third party.

Frequently asked questions

What is MCA reconciliation?: Reconciliation is a contract provision that lets your daily ACH amount adjust downward when your business revenue drops. The original deal might be priced at 12% of daily deposits — if your monthly deposits drop, the daily ACH (and the term) should reset to match. Without reconciliation, you keep paying the original daily amount even when your revenue can't support it — which is the #1 path to default.
Do all MCA funders offer reconciliation?: Most include some form of reconciliation language in the contract. The gap is enforcement. Strong funders (Greenbox, Credibly, Accord for established files) honor the language. Weaker shops include the language but make the request process slow, paper-heavy, or contingent on prior monthly reporting most merchants don't do. The contract says yes; the practice says 'depends'.
What's the difference between true-up and reconciliation?: True-up is a one-time correction at month end where the funder reconciles what you paid vs what you should have paid based on actual deposits. Reconciliation is the ongoing right to request a daily ACH adjustment when revenue drops materially. Some contracts use the terms interchangeably; some use both. Read the contract — the operating mechanic matters more than the label.
What documentation will I need to request reconciliation?: Almost always: a current month bank statement plus the prior 2-3 months for trend. Often: a brief operator letter explaining the drop (seasonal, lost contract, equipment issue). Sometimes: tax returns or P&L. The faster funders process this in 5-7 business days. The slower ones take 3-4 weeks — and by then you may have defaulted on the original schedule.
How do I negotiate stronger reconciliation language before signing?: Three things to push for: (1) automatic monthly true-up based on a percentage trigger (e.g., 'when deposits drop 20%+ from baseline, ACH auto-adjusts'); (2) a maximum review turnaround stated in days; (3) the right to a partial pause (1-2 weeks of zero ACH) during documented disasters (storm, equipment failure, key staff loss). Most funders won't agree to all three, but they'll often agree to one. The ask itself signals you understand the contract.

MCA reconciliation policies, ranked — who actually adjusts.