[Mcalawyers]

I would like to pose a question to MCA's that use a fixed, daily ACH withdrawals (especially with businesses that are seasonal) and the arrangement goes longer in time than the quarter that has strong sales.

Hypo: Your merchant has two weeks of slow sales, causing multiple NSF's on your daily, fixed ACH pulls. After multiple bounced NSF's, the bank (not the merchant) locks out the MCA from additional withdrawals (which I have seen banks make this decision in the past)

You communicate with the Merchant about the issue and they advise they had two slow weeks of sales; however they are back on track and would like to resume the daily ACH's (but can't afford to pay you the missed payments, NSF defaults and other fees that may have assessed all in one payment).

What are some next steps? Waiver of the fees to keep them on-board, or advise them of the breach and potentially escalate to collections?

[Capital Stack]

Always a bad idea to default a merchant for minor issue's like this. Work it out and get them back on their feet many merchants like all business's have bumps in the road. As long as their intentions are good, get them through it and move on.

I would like to pose a question to MCA's that use a fixed, daily ACH withdrawals (especially with businesses that are seasonal) and the arrangement goes longer in time than the quarter that has strong sales.

Hypo: Your merchant has two weeks of slow sales, causing multiple NSF's on your daily, fixed ACH pulls. After multiple bounced NSF's, the bank (not the merchant) locks out the MCA from additional withdrawals (which I have seen banks make this decision in the past)

You communicate with the Merchant about the issue and they advise they had two slow weeks of sales; however they are back on track and would like to resume the daily ACH's (but can't afford to pay you the missed payments, NSF defaults and other fees that may have assessed all in one payment).

What are some next steps? Waiver of the fees to keep them on-board, or advise them of the breach and potentially escalate to collections?