Reconciliation is the process of adjusting a merchant cash advance's remittance so it matches your actual revenue. Because an MCA is meant to collect a percentage of sales, reconciliation trues up the fixed daily or weekly amount to your real deposits when they differ.
How it works
Many MCAs collect a fixed daily or weekly amount for convenience, estimated from your revenue. If a month runs slow, a reconciliation clause lets you request an adjustment — with documentation like bank statements — so you are not remitting more than the agreed percentage of actual sales. Some agreements reconcile automatically; others require you to ask.
Why it matters
Reconciliation is one of the most important protections in an MCA agreement. Without it, a fixed payment can become punishing in a downturn. Knowing whether your agreement offers reconciliation, and how to invoke it, is essential before signing.