Can I Choose My MCA Payment Amount?
You can't pick any number you like, but you can shape it. The payment is set by the amount you take, the purchased amount and the term the funder offers, so asking for a smaller advance, a longer term or a weekly schedule are the real levers you have.
How does a funder set the payment?
For a fixed payment advance, the funder divides the purchased amount by the number of payments over the estimated term. For a split of card sales, the payment is a percentage of each batch. Either way, the funder sets it so the collection matches your expected sales and the risk it sees in your file. You're asking the funder to change that balance when you ask for a different payment.
Which three levers change the payment?
- Amount. A smaller advance means a smaller purchased amount and a smaller payment.
- Term. A longer estimated term spreads the same total across more payments. Funders limit how long they'll go, often based on your history.
- Frequency. Weekly payments are the same money on fewer days, which some owners find easier to plan around.
What do owners miss about the payment?
A longer term lowers the payment but doesn't lower the total, and on some offers a longer term comes with a higher factor rate. Compare total payback as well as the payment. Also check whether the payment fits your worst weeks, not your average ones. A payment that's fine on a good Tuesday can bite in a slow month.
When should you ask for a different payment?
The time to shape the payment is before you sign. Once the contract is in place, changing it means a reconciliation request or a modification, which depends on the funder's willingness and your sales history. We'd rather get it right up front.
How do you tell if a payment fits?
Look at what's left in your account on your leanest days after regular bills. The advance payment should sit comfortably inside that number with room to spare. If it takes most of it, go smaller.
Can you choose the payment day or frequency?
Beyond the amount, you can often choose which weekday a weekly payment comes out. Pick the day after your biggest deposits land, not the day your rent or payroll leaves. That small choice makes the payment feel lighter because the money is already sitting there when the debit arrives. It also cuts the chance of a returned payment, which carries fees and strains the relationship with your funder.
How can Afterfirst help with this?
Call 877-FUND-654 and tell us the payment that feels right for your business. We'll work backward from it, ask funders for offers that match and show you exactly what the amount and total look like at that payment.
What else do owners ask about this?
- Can I ask for a smaller amount than I was approved for?
- Can I make extra payments on my merchant cash advance?
- Is it safe to e-sign an MCA contract?
More short answers on this topic are on the offers and contracts FAQ, and the MCA offer comparison runs the numbers for your own file.
Have a question we didn't answer?
Ask us on the call. Call 877-FUND-654 with any question. We call you back, usually the same business day, and we always talk with you before we shop your file.