Which funding products does this apply to?

Merchant Cash Advance, Revenue-Based Financing. Each has its own page listing the funders in this directory that offer it and what each one publishes about its terms.

Are the figures here quotes?

No. Every worked example is labelled illustrative and exists to show the arithmetic. What a particular lender charges is on that lender's page, where it publishes it at all.

The Find Me Funders research desk. Some drafting is AI-assisted, and every page that is says so at the top, including whether a person has checked its claims yet.

How do I know a figure here is right?

Where a page carries the green notice, its claims were checked against the sources listed at the end and a reviewer is named. Where it carries the amber one, nobody has verified it yet and you should confirm anything you plan to act on.

Are the examples real deals?

No. Every worked example is labelled illustrative and exists to show the arithmetic. What any particular lender charges is on that lender's page, where it publishes it.

Why do you never say what a typical rate is?

Because we cannot source it. A market average assembled from lenders who do not publish prices is a guess with a decimal point on it. Where a lender publishes a figure, we show that figure and say where it came from.

Is this financial or legal advice?

No. It is general information about how these products work. Outcomes depend on your contract and your state, and a lawyer or accountant licensed where you are is the person to ask about your situation.

Can I reuse this content?

Quote a paragraph with a link back. Do not republish whole articles.

Specified percentage vs fixed daily debit on an MCA

The specified percentage and the fixed daily debit are not the same thing

Your contract sets a share of receipts. Your bank account sees the same number every morning. The gap between those two facts is where most merchant cash advance trouble lives.

By Find Me Funders research desk Updated 14 September 2026 988 words 4 min read

Drafted with AI assistance. Not yet independently checked. Nobody has verified the claims on this page against a source, so treat the figures and legal points as a starting point rather than as settled, and confirm anything you are about to act on. How we check things.

Your agreement almost certainly says the funder is entitled to a specified percentage of your daily receipts. Your bank statement almost certainly shows an identical debit every business day regardless of what you took in. Both things are true at once, and understanding how is most of what protects you.

How the percentage becomes a fixed number

Underwriting reads three to six months of bank statements, works out an average daily or weekly deposit figure, and multiplies it by the specified percentage. The result is written into the agreement as the estimated remittance, and that estimate is what gets loaded into the ACH file.

Illustrative only — suppose the specified percentage is 12% and underwriting concludes your average business-day deposits are $4,000. The estimated daily remittance is $480. From funding day forward, $480 leaves the account every business day. If you take in $9,000 on a Saturday and $600 on a Tuesday, the debit is still $480 each time.

The percentage has not disappeared. It has become dormant. In most agreements it only reasserts itself if you invoke the reconciliation clause and the funder honours it.

Why nearly every deal ends up on a fixed debit

ACH is cheaper and simpler than a true split.A genuine percentage collection requires either the card processor to split settlements at source or a controlled deposit account. Both add cost, both add friction, and both break when you switch processors or banks.

Fixed amounts make the funder's yield predictable.A percentage of an unknown number is an unknown number. A fixed debit turns an uncertain stream into something that looks like an amortisation schedule, which is exactly what the funder's own cost of capital wants.

Most funded businesses are not card-heavy.Contractors, wholesalers, staffing firms and professional services take money by cheque and transfer. There is nothing to split. ACH against the operating account is the only practical mechanism.

The irony is worth sitting with. The fixed debit is the feature that makes the deal work commercially, and it is also the feature most often pointed to in arguments that a particular agreement functions as a loan rather than a purchase. That question is decided contract by contract and is not settled law.

The clause to find and how to read it

Look for the paragraph that introduces the estimated remittance. There are two drafting styles and they behave very differently.

Estimate subject to reconciliation.The fixed amount is described as a good-faith estimate of the specified percentage, and the contract sets out a process for adjusting it up or down against actual receipts. This is the version you want, and it is only as good as the reconciliation procedure attached to it.

Agreed remittance.The fixed amount is described as the agreed daily payment, with the percentage relegated to background. Some of these still have a reconciliation clause; some make it discretionary, or condition it on being current, or require notice in a window so short it is easy to miss. Read the conditions before you read the number.

Then check what happens to the debit if receipts rise. A reconciliation clause that only ever adjusts downward on request, and never upward, is a floor with no ceiling — which is fine for you, and worth knowing.

What this changes about how you plan

Budget for the fixed number, not the percentage. If you plan on the basis that a slow week means a small debit, a slow week will instead mean an overdraft. The percentage is a right you may have to assert. The fixed debit is a fact that happens at six in the morning.

Two practical habits follow. Keep a running comparison of what the debit actually took each month against what the specified percentage of your actual deposits would have been — that difference is the entire value of your reconciliation right, quantified. And know, before you need it, exactly what the contract requires you to do to trigger an adjustment, because the moment you need it is not the moment to start reading.

What the reconciliation right is worth, in dollars

Carry the same deal forward: a 12% specified percentage, an estimated daily remittance of $480 built on $4,000 of average business-day deposits.

Illustrative only — a month with 21 business days in which actual deposits come in at $58,000 rather than the $84,000 the estimate assumed.

The fixed debit takes $10,080. That is 17.4% of everything that arrived, not 12%.

The specified percentage applied to actual receipts would have been $6,960. The gap is $3,120 in one month, and across three months of a soft season, $9,360.

That number is the entire value of your reconciliation clause, and it is why the clause is worth more negotiating attention than the factor. A reconciliation right you can actually exercise converts $3,120 of overpayment into cash that stays in the account. A reconciliation clause that is discretionary, or conditioned on being current, or requires notice inside a window you will miss, converts it into nothing.

Work this out on your own worst month before you sign, not after. The arithmetic takes two minutes and it tells you what you are actually buying when you negotiate this clause.

What to ask before signing

Is the daily or weekly amount an estimate of the specified percentage, or is it the agreed payment?
On what deposit figure was the estimate calculated, and over what months?
What exactly do I have to send you, and by when, to get the amount adjusted after a bad month?
Does the amount ever adjust upward automatically?
If I switch banks or processors during the deal, what am I required to do first?

Ask these in writing and keep the answers. If a broker answers the first question with "it works out to about the same", you have learned something about the broker.