What Happens If an MCA Payment Bounces?
One bounced payment usually means a returned-payment fee from the funder and one from your bank, plus a call or email asking you to make it up. It isn't usually a default by itself. Several in a row, or a bounce because you blocked the debit or moved deposits, can be. Call the funder the same day, explain what happened and agree how to catch up.
What does this look like with real numbers?
Say your daily debit is $350. It bounces. Your bank charges its fee and the funder's contract adds its own returned-payment fee. Some funders then try $700 the next day to catch up. If that bounces too, you now have two sets of fees and a funder asking questions. One call on day one can avoid the second bounce.
What if payments keep bouncing?
Repeated bounces mean the payment is too big for your sales. That's what reconciliation is for. If you carry several advances, check the total in the stacked payment calculator.
Will a bounced payment cost you a fee?
Most contracts set a returned payment fee, and your bank charges its own NSF fee, so one bounce costs twice. The contract names the funder's fee. Call the funder the day it happens and ask to run the missed payment again on a day the money is there.
How do you stop it from happening again?
- Move the debit to a day your deposits have landed.
- Keep a cushion equal to a few days of debits.
- Ask for a weekly payment if daily debits keep hitting low balances.
- Request reconciliation in writing if sales fell.
One returned payment is usually a fee. A pattern of returns is what turns into a default notice, so fix the timing before it repeats.
What should you ask the funder?
- What's your returned-payment fee?
- Will you retry the debit, and when?
- How many returns count as a default?
- Can I reconcile if my sales dropped?
Where can you check your own numbers?
The short version is in the Repayment FAQ. To check the numbers on your own advance, use the stacked payment calculator.
Want a second look at your advance?
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.