Can a Funder Change My MCA Terms After I Sign?
Not on its own. Once both sides sign, the contract's terms bind the funder too, so it can't raise your payment or add fees unless the contract allows it or you agree to a change in writing.
What can a funder change under the contract?
Some contracts build in adjustments. The reconciliation clause lets the payment move to match your actual sales, in either direction. Some contracts allow certain fees if a payment bounces, or a higher rate of collection after a default. These aren't changes to the deal. They're parts of the deal that kick in under specific conditions.
What can't a funder change?
A funder can't decide mid-advance that it wants a higher daily payment because it's nervous, add a new fee that isn't in the contract or change the purchased amount. If it tries, point to the contract and ask where the change is authorized.
Which changes need your agreement?
The most common change is a modification you ask for, like lowering the payment during a slow period. That's usually documented with a written addendum. Read it carefully before signing, because modifications sometimes extend the term or add a fee.
What if the debits suddenly grow?
Check your statements. If the funder is taking more than the contract allows, call the funder first and ask for an explanation in writing. If it doesn't fix it, call your bank about the ACH authorization and consider talking to an attorney. Keep a record of every call and every email.
Can terms change before funding?
Before funding, a funder can revise its offer if new information comes up in underwriting. That's a new offer, and you decide whether to accept it. You're never obligated to sign a revised contract that differs from what you were told.
How do you spot a new contract disguised as paperwork?
Sometimes, partway through an advance, a funder sends a document described as routine: an updated authorization, a new form or a revised schedule. Read it. If it changes the payment, adds a fee or extends the term, it's a modification, and you're free to decline it. Ask the funder to explain in writing what the document changes before you sign anything new.
Does a renewal change your terms?
A renewal is a new contract, so its terms can differ from your first advance. That's normal, and you should compare the renewal offer as carefully as you did the original, including the payment and the net new cash.
How can Afterfirst help with this?
If your payments don't match what you signed, call 877-FUND-654 and send us the contract and your recent statements. We'll help you see what the contract allows and what to ask the funder.
What else do owners ask about this?
- What if my MCA funder is debiting more than we agreed?
- How do I get a copy of my MCA contract?
- Can I sell my business while I have an MCA?
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.