Reconciliation is what makes repayment genuinely contingent on revenue rather than fixed. Most agreements provide for it; the meaningful question is how hard it is to actually obtain. A clause that exists on paper but requires documentation nobody can realistically produce is a recurring theme in enforcement actions.
Related terms
Holdback
The percentage of daily card sales or bank deposits a funder takes until the advance is repaid.
Recharacterisation
A court or regulator determining that a transaction structured as an advance was, in substance, a loan.
Confession of judgment
A contractual clause in which a merchant agrees in advance to entry of judgment against them on default, without a hearing.
Cure period
A contractual window in which a merchant can remedy a breach before default consequences apply.
ACH remittance
Repayment collected by scheduled debit from the merchant’s bank account rather than as a split of card receipts.