MCA
Understanding Daily Remittances on a Merchant Cash Advance
How the debit is calculated, why it lands when it does, and how reconciliation is supposed to work when revenue drops.
April 1, 2026 · 6 min read
Fixed ACH versus true percentage
Most advances collect a fixed daily ACH estimated from a specified percentage of historical deposits, then reconcile periodically. Split-funding advances collect a literal percentage of card settlement before it reaches your account.
The first is administratively simpler and requires an honest reconciliation clause to remain revenue-linked. The second is self-adjusting by design.
Timing and banking mechanics
Debits post on business days only, so holidays shift the schedule and Mondays often carry two settlements. Keep the buffer to match — an overdraft from a predictable calendar quirk is the most avoidable default there is.
Never change bank accounts without written notice to the funder. Blocked debits are an event of default in essentially every agreement.
Using reconciliation properly
If revenue falls, request reconciliation in writing with statements attached, before you miss a payment. A documented request supported by data is granted far more often than an after-the-fact explanation.
Reconciliation lowers the debit and lengthens the term. It does not reduce the purchased amount.