The advance was priced for a business that no longer exists. The withdrawals are priced for it still.
When you signed the MCA agreement, the daily withdrawal was calculated as a percentage of your revenue at that moment. The revenue has changed. The withdrawal has not. The gap between what the business earns and what the contract takes is the space in which the business suffocates.
Eight indicators that the gap has become unsustainable.
Your Ending Daily Balance Is Lower Than Your Opening Daily Balance
After deposits and withdrawals, after the MCA debit and the day's expenses, the account holds less at close of business than it held at open. This means the business consumed more than it produced. One day is noise. Five consecutive days is trajectory.
You Are Transferring Personal Funds to Cover the Business Account
The personal subsidy is the clearest indicator that the business, on its own revenue, cannot service the MCA. The subsidy masks the deficit on the bank statement, but it does not alter the underlying arithmetic.
Your Average Daily Bank Balance Has Dropped Below Two Weeks of Operating Expenses
A business with less than two weeks of expenses in reserve is operating without a buffer. A single failed ACH attempt, a single unexpected expense, a single slow week pushes the account into overdraft territory.
You Have Deferred Tax Payments
When MCA withdrawals take priority over quarterly estimated taxes or payroll tax deposits, the business is diverting obligatory payments to service a commercial contract. The IRS imposes penalties and interest. State taxing authorities impose liens. The MCA funder does not outrank the tax authority, but the funder's daily withdrawal arrives first.
Your Vendors Have Placed You on COD