MCA Reconciliation Requests: 7 Statements to Check Against the Records

A reconciliation request should explain the difference between actual receipts and the collection amount without introducing another dispute about the facts. The safest statement is the accurate one, supported by the agreement and records, rather than a phrase selected because someone promises it will persuade an underwriter.

1. The Revenue Figure and the Period It Describes

In LG Funding v. United Senior Properties of Olathe, the New York appellate court examined reconciliation alongside other provisions when considering whether repayment was absolute. The decision preserved a defense on the particular record. It shows why the actual clause matters, without establishing a universal script for requesting an adjustment.

The first statement to check is the revenue figure. An estimate recalled from a busy month may not describe the period for which adjustment is requested. Use the actual records and explain any difference between gross sales, collected receipts, and the amount deposited after deductions.

The second is the period covered. Saying revenue fell last month can mean a calendar month, a statement period, or the weeks since the previous debit change. Identify the dates so the provider can compare like periods. An accurate total can mislead if its interval is left uncertain.

Do not alter a figure to make it fit the agreement's estimate. If the original estimate appears wrong, describe the discrepancy and preserve the supporting records. Counsel should assess its legal significance where the account is disputed.

2. The Existing Request and the Records Supplied

The third statement concerns whether an adjustment was already requested. Before saying the provider ignored every request, collect the emails, portal submissions, and responses. An owner may remember a telephone conversation that the agreement does not treat as the required notice. The factual account should distinguish those events.

If no request was made, do not invent one. State what is being requested now and obtain advice about the effect of the earlier period. A truthful record allows counsel to assess the issue. A fabricated notice creates a different problem from a missed procedural step.

The fourth statement concerns the documents supplied. Avoid saying the provider has everything unless the required material has been identified and its delivery can be shown. A statement, ledger, or processor report may have been sent to another representative or for a different purpose.

If a representative summarizes the request by telephone, follow up with an accurate written account and ask for correction of any misunderstanding. The purpose is to preserve the substance of the exchange, not to manufacture agreement where none exists. Keep the response with the original request so the business can identify which points remain unresolved.

List the attachments in the request and retain a copy of the package. If a document is unavailable, explain that fact and ask what substitute, if any, the provider will accept. The business should not promise an attachment it does not possess or silently omit a material account.

Where repeated requests for information appear unnecessary, keep the sequence. Counsel can evaluate the contractual and legal implications of the provider's response. The owner does not need to exaggerate the history to make a genuine delay visible.

A reconciliation conversation can also reveal that the business and provider are using different definitions of receipts. Ask for the calculation behind the current debit and compare it with the agreement. The point is to establish the difference before describing it as misconduct.

The request should be understandable to someone who has not handled the account before. Include the agreement reference, period, requested adjustment, and records supporting it. A concise statement tied to evidence is more useful than a lengthy account of every frustration with the funding relationship.

3. The Business Obligation and the Owner’s Promise

The fifth statement concerns personal responsibility. An owner should not casually expand a business request into a new promise to pay from personal assets. At the same time, the owner should not deny an existing guaranty without reading it. The signed instrument determines the obligation being asserted.

If the provider requests a new guaranty, authorization, or acknowledgment as a condition of adjustment, obtain legal review before signing. An adjustment to collections and a new personal commitment are different subjects. They should not be treated as routine parts of the same form.

The sixth statement concerns what the business can pay. A proposed amount should follow the actual cash forecast and the contractual request. Do not promise that a temporary amount will remain affordable indefinitely when sales and essential expenses do not support that conclusion.

A weaker forecast may require a broader settlement or legal discussion. Calling every request reconciliation does not make it fall within the clause. The business should distinguish exercise of an existing contractual right from a proposal to change the agreement.

4. The Consequence of a Lower Payment

The seventh statement concerns what the request accomplishes. Asking for a lower debit does not itself establish that the provider has approved it, waived a claimed default, or released another obligation. Obtain the response and the effective terms in writing.

A pending lawsuit or formal notice still requires attention. Counsel should assess the applicable deadline while the adjustment discussion proceeds. The business should not represent that the case is paused merely because a servicing employee has asked for updated statements.

5. Use Delancey Street When the Problem Exceeds Reconciliation

Delancey Street is a debt settlement company that can discuss business debt negotiation when the current burden no longer fits the operation. An attorney should assess contractual rights, disputed defaults, and personal liability. The company should not be described as providing legal representation.

Bring the reconciliation request and its supporting records to the initial conversation. That allows the review to distinguish a calculation dispute from a proposal to accept different terms. The appropriate response may involve one or both, depending on the agreement and finances.

Ensure that any proposed payment accounts for the business's other obligations and service fees. Ensure also that an accepted adjustment or settlement states what changes and what remains. A favorable conversation is useful only when the resulting terms can be understood and performed.

The seven statements are a check on accuracy, not a list of phrases that guarantees approval. The business should say what the records support and preserve what it sends. That discipline protects the usefulness of the request even when the provider disagrees.