Use the MCA Reconciliation clause by writing to the address in the contract and sending all of your bank statements since the contract date. The funder should then compare the debits to the specified percentage of your actual receipts. New York forms usually require them to credit any overcollection within 2 business days and reduce your payment.
Where do you start when you want to use an MCA reconciliation clause?
First, read the reconciliation clause. Each clause is different and you are held to its terms. In New York, the funders must comply with 23 NYCRR 600.6, which requires the disclosure page to explain the "true-up mechanism" and cite the contract section that details it. Look for:
- How do you have to ask? The 2026 Pristine form requires written notice or email to the stated address, but its notice section also allows certified mail, overnight delivery and even texting.
- How long do they have to reconcile? Both Pristine and Cedar Advance give themselves 2 business days.
- Will they stop debiting while they reconcile? Cedar states it will pause ACH debits "until the reconciliation process is complete," but Pristine has no such language.
- What is the lookback period? Most reconcile cumulatively from the contract date, but one (Aurai) reconciles monthly, on or about the 18th, against the prior calendar month.
- Do they have to ("shall") reconcile, or is it "in its sole discretion"?
How do I know that the MCA reconciliation will reduce my payment?
You have to run the numbers. Reconciliation goes both ways: the Pristine form says that if they did not debit enough they can debit you for the difference. Using Pristine's deal, if they are debiting $1,075 a day, and the specified percentage is 5.06%, then they think you are taking in about $21,245 a day. If you are actually taking in $12,000 per business day, you should ask for a reduction to $607 (5.06% of $12,000).
Be careful though. First, most look at the total since the contract date, so good early months might mean they did not overcollect. Second, use business days: 10% of $100,000 a month is $10,000, and over about 21.7 business days that is $461 per business day, not $333 a day. Read the specified percentage guide for the full calculation.
What documents do you need to provide for an MCA reconciliation?
Send what the clause says. The Cedar form calls for "any and all bank statements covering the period from the date of this Agreement through the date of the request for a reconciliation," month-to-date account reports or other revenue records, or the login "if available." Pristine's is similar. Neither asks for tax returns or P&L's, so don't provide them.
Be careful though. Complete bank statements may show other funders debiting your account. In the Pristine form, a merchant representation that "proves to have been made intentionally false or misleading in any material respect" is an event of default. If you represented that you had no other funders and the statements show otherwise, talk to a lawyer before sending them.
What should you put in the MCA reconciliation request letter?
You should label the letter something like "Request for Reconciliation under Section ___ of the Merchant Cash Advance Agreement." Then, include the following:
- your name (the merchant);
- the date of the agreement;
- the advance number;
- the completion deadline;
- the period covered;
- the total receipts for that period;
- the total debited to your account;
- the specified percentage x total receipts;
- the amount they have overcollected; and
- your proposed new payment amount.
If the agreement pauses debits during reconciliation, ask for the pause and cite the section number. Finally, ask for their calculation in writing.
Leave out hardship stories and settlement offers, because New York’s compromise statute protects settlement offers only on disputed claims, and a routine reconciliation request isn’t one. See CPLR 4547. Send the letter by every notice-clause method with proof of delivery, such as email and certified mail or overnight delivery.
How long does the funder have to respond?
Under the Cedar and Pristine MCA forms, the funder has two business days from receipt of proper notice “accompanied by the information and documents required” to complete the reconciliation. Funders use that language to delay, so send everything at once and offer in writing to provide anything else they need. If the two days expire, email the next business day noting the missed deadline, then send a certified letter.
Unless your contract pauses debits, continue to pay while you wait. In fact, under the Cedar MCA form, blocking the ACH debits without notifying the funder is a default. Under the Pristine form, as long as you give the funder not more than one business day’s notice, they waive the $50 NSF fee.
What can you do if the funder refuses or ignores the request?
Even an ignored request helps show a court you tried to reconcile, for the reasons explained in What is a Reconciliation Clause and Why Does it Matter? In People v. Richmond Capital Group (1st Dept. 2026), evidence that the funder denied reconciliation requests and never reconciled in practice helped show that the MCA was a loan. Conversely, if you never try, you can’t later argue that the clause is illusory. See Apollo Funding v. Dave Reilly Construction (2nd Dept. 2025).
The funder may push back against your request. In Oakshire (4th Dept. 2024), the funder refused a request to lower the daily payment and filed a Confession of Judgment two days later. (Confessions of Judgment are now void in Texas, however. See Tex. Fin. Code 398.055.) Answer the funder’s figures in writing, and don’t sign any “modification” or “stipulation for relief” without a lawyer, because guaranties in these contracts (such as Pristine’s) survive modifications.
Frequently Asked Questions
Can I request a reconciliation more than once?
Yes, at least under the MCAs that we have reviewed. There is nothing in the Cedar or Pristine MCAs that prevents multiple requests for reconciliation.
Do I need to provide the funder with my bank login?
Typically, no. The contracts list the login as an option along with or instead of bank statements, so providing the statements should be enough.
Can I still request a reconciliation after defaulting?
It depends on the specific contract. Under the Aurai form, for example, the specified percentage is 100% after default, so a request would be pointless. It’s always better to request a reconciliation before default.
I'm a Pennsylvania business. Which law applies?
Most of the MCA contracts that Pennsylvania merchants sign are subject to New York law so these contract provisions and cases should be applicable to your contract.