What Happens If I Stop Paying My MCA?
If you stop paying on your own, the funder will usually treat it as a default. The full balance can become due at once, the contract's default fees get added, and the funder can call on your guarantee, notify your customers under its lien and sue. If your sales fell, asking for reconciliation or a restructure in writing usually gets a lower payment without those risks.
What does this look like with real numbers?
Say $30,000 is left on your advance and your sales just fell by a quarter.
| Keep paying, request reconciliation | Stop paying | |
|---|---|---|
| Balance | $30,000 | $30,000 due now |
| Fees | None | Whatever default fee the contract lists |
| Payment | Adjusts to lower sales | None, then collection |
| Next step | Funder reviews your statements | Default notice, then a lawsuit |
What are safer ways to lower the payment?
- Reconciliation, if sales dropped.
- A written restructure request: smaller payment, longer term.
- Reverse consolidation, if you carry several advances.
- A lawyer, before you block any debit.
The full chain of events is in what happens if you default.
Should a reconciliation request be in writing?
Yes. Send the request by email with your recent statements attached, and keep a copy. A written request shows the date you asked and what you sent, which matters if the funder later says you stopped paying without notice.
What usually follows when payments stop?
| When | What usually happens |
|---|---|
| First missed debits | Returned-payment fees and calls from the funder |
| A few days later | A written default notice |
| Next | Notices to your customers or card processor under the UCC lien |
| After that | A lawsuit against the business and any guarantor |
Timing varies by funder and contract. Every step is easier to stop early, so ask for a restructure at the first sign trouble is coming.
What should you ask the funder?
- What does reconciliation require from me?
- Would you restructure to a weekly payment?
- What's the default fee in my contract?
- Who confirms changes in writing?
Where can you check your own numbers?
The short version is in the Legal FAQ. To check the numbers on your own advance, use the MCA 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.