[abfunders]

For those that have been in the industry long enough, when all we had were CC splits in 2007 - 2008, then some ach products came out in 2009 - 2010, they were set up exactly like this. Merchant signs up via decision logic, or provides view only access to their bank account or any other type of access for the funder to see daily deposits, then funder debits the agreed upon % based off of the daily rev, just like a CC split but all rev is included.

Decision Logic or Plaid
There's not a dearth of solutions like that in the market today that just weren't there 13 years ago.
Also, I imagine that investors liked having the set daily payback to know that 6 months means 6 months.

[BB_Cooper]

Decision Logic or Plaid
There's not a dearth of solutions like that in the market today that just weren't there 13 years ago.
Also, I imagine that investors liked having the set daily payback to know that 6 months means 6 months.

Good point Micah. Do MCA investors or many of the merchants want fluctuating daily draws?

[Fundkite Egor]

Good point Micah. Do MCA investors or many of the merchants want fluctuating daily draws?

Speaking from personal experience as an ISO rep at Fundkite, majority of our merchants are happy to work with our reconciliation and believe its beneficial to their business cash flow. As opposed to a fixed payment in which the merchant may worry about making payments when business is down.

Reconciliation allows merchants payments to be flexible according to their sales, so yes, a 6 month term could end up being 4 months or 8 and we're fully prepared for either scenario.

[FundKite]

This is not about investors. This about proving merchants with the product they expect. Fixed payments are not MCA. Most of our merchants are on daily or weekly reconciliations. How we do it is a combination proprietary products and 3rd party vendors. It works, merchants are happy and they are paying what they are supposed to per the MCA product.