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True-Up

The process of adjusting a merchant cash advance's collected amount to match what the agreed holdback percentage should have actually been, based on real revenue over a period.

If a fixed daily remittance was estimated too high relative to actual sales, a true-up (typically done under a reconciliation clause) can refund or credit the difference back to the business, and if it was estimated too low, it may result in an additional catch-up payment.

Not every MCA agreement includes true-up rights, so it’s a specific term worth confirming, especially for a business with revenue that fluctuates enough that a fixed daily amount might drift noticeably from a true percentage-based holdback.

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