Most of ya'll know me. I'm Dassi Cole from Better Accounting Solutions. I wanted to take a quick minute to give everyone an example of how we allocate your funds in Quickbooks and other MCA programs. For Example: Your MCA funds a $100,000 deal with an RTR of $150,000. The RTR is more than 3% of the funding. If daily paybacks $1,500, we recognize 33.3 of that ($500) as recognized income. We post 10% of paybacks per account toward the Bad Debt and Default Reserve. This is done to absorb defaults when they occur, and we evaluate the default rate annually. We do this to allocate the bad debt over the duration of the loan, and so that the income statement looks orderly at the month's end.
If you need any assistance with Bookkeeping or have questions, call me any time. 347-416-3928