5 Steps to Take When Your Combined MCA Payments Exceed Your Monthly Revenue

The business generates less than it owes. This is the definition of an obligation that cannot be serviced.

When the combined monthly MCA withdrawals (daily amount multiplied by business days) exceed total monthly revenue, the deficit is structural. It does not correct with a strong week or a new customer. The withdrawals process every business day regardless of what the business earns. The math has crossed a line from which it does not return without intervention.

Acknowledge the Math

The first step is the one most delayed. Total monthly MCA withdrawals: calculated. Total monthly revenue: known. If the first number exceeds the second, no operational adjustment, no cost reduction, no sales initiative closes the gap in time. The gap is the problem. The gap requires a legal solution.

Stop All Personal Subsidies

Money transferred from personal accounts to cover the business's MCA obligations depletes the resources needed for settlement, attorney retention, and post-resolution recovery. Every dollar spent subsidizing an unsustainable payment schedule is a dollar unavailable for the resolution that ends it.

File Reconciliation Requests Across All Agreements

The disparity between revenue and payment amount is the reconciliation argument in its most powerful form. The agreements purchased a percentage of future receivables. The receivables are lower than the payments. File the requests. Document the gap. Create the record.

Prepare for Settlement or Chapter 11

When monthly obligations exceed monthly revenue, the resolution options are settlement (at a reduced amount, funded by the resources preserved by stopping the personal subsidy) or bankruptcy protection (invoking the automatic stay to halt all withdrawals and restructure under court supervision).

An attorney evaluates which path is appropriate based on the specific agreements, the total obligation, the available assets, and the strength of the legal defenses each agreement contains.

Make the Call

The consultation determines which agreements are challengeable, which funders are likely to settle, what the total reduced obligation could be, and whether bankruptcy is necessary or avoidable. The consultation takes an hour. The situation it addresses has been consuming the business for months.

DEFENSE TEAM SPOTLIGHT

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Featured on Netflix's "Inventing Anna," Todd Spodek brings decades of high-stakes criminal defense experience. His aggressive approach has secured dismissals and acquittals in cases others deemed unwinnable.

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Meet the Full Team

The math is conclusive. The business cannot service the debt. What remains is the question of how the debt is resolved, and that question is answered by someone who has resolved hundreds of them.

The call is free. The math is not going to change.