The starting point
A documented revenue decline and a realistic budget support a useful review. Only an applicable contractual process or accepted arrangement—not your estimate alone—can establish changed payment terms.
An inquiry does not change the payment due
Do not reduce, block, or stop contractual payments based on this guide, an affordability estimate, or a pending request. Obligations and default consequences can remain in effect. Consult appropriately qualified counsel promptly about disputed contract rights, collection litigation, or legal response deadlines.
Show the decline with comparable records
Gather bank and processor statements for the period before and after the decline. Identify when collections changed and whether the cause was seasonality, a lost customer, slower receipts, or another documented event. Separate collected business revenue from financing deposits, account transfers, and owner contributions.
Use comparable periods and explain unusual transactions. A drop in sales booked this month may affect cash collections later; an unpaid invoice is not the same as money available for a withdrawal. Clear supporting records are more useful than an unsupported percentage estimate.
Check whether the contract provides reconciliation
If the agreement contains reconciliation provisions, read the definition of receivables, required records, request method, review period, and any stated conditions. Note the specified contact and keep copies of submissions and replies. Do not assume another owner’s agreement or a general online description applies to yours.
Reconciliation may adjust remittances to reflect actual receivables under the contract; it does not necessarily forgive the remaining obligation. Questions about contractual rights, denied requests, or disputed interpretation should go to appropriately qualified counsel. New Guidance Group does not provide legal advice or submit negotiations for you.
Calculate capacity without presenting it as an entitlement
For an illustrative weekly budget, assume $20,000 in collected operating revenue, $15,000 in essential operating expenses, $2,000 for other obligations, and a $1,000 cash buffer. That leaves $2,000 for all MCA obligations together—not $2,000 for each provider. These assumed numbers are only arithmetic, not a recommended payment or a contractual formula.
Replace them with documented figures and avoid double-counting expenses. Test lower collections and the actual dates of receipts and debits. Your cash-flow estimate may differ from the agreement’s reconciliation calculation, and neither a budget nor a revenue decline guarantees provider acceptance of a proposal.
Distinguish a request from implemented terms
For a negotiated change, ask what evidence the independent servicing company needs and how the proposal addresses all active obligations. The company handles negotiations and creditor communications under its own engagement. A provider can reject or counter a proposal, and another provider’s acceptance does not change this agreement.
Before relying on changed debits, obtain written confirmation from the provider through the applicable process. Confirm the amount, frequency, effective date, duration, fees, reporting requirements, and any later increase. Ask how existing withdrawals will be handled and what happens if the change is not implemented as documented.
Watch the full obligation after a payment change
A temporary reduction can leave a later cash-flow problem if the payment steps up before revenue recovers. Review the total remaining obligation, any deferred amounts, independent service fees, and the resources required to continue under the written arrangement. Track actual collections against the assumptions used.
If you need help organizing the picture, New Guidance Group offers a complimentary initial 30-minute debt and cash-flow consultation nationwide, then connects owners with independent servicing companies that handle all fulfillment. We do not lend, negotiate, or guarantee a reduction, timeline, or outcome.
What to prepare for a review
- The MCA agreement, amendments, and any reconciliation instructions
- Comparable bank and processor statements before and after the decline
- A dated hardship explanation supported by customer or business records
- A complete debt schedule and conservative weekly cash-flow budget
- Copies of requests, provider replies, and any written payment-change terms