Sales declining mid-MCA-repayment, what restructuring fits
Sales are not collapsing, they are slowly drifting down, 3 months in a row, while the MCA still bites. The lender will spot the trend in split-funding data soon. The 7-day window is for self-disclosure, picking the right restructure shape (term, rate or refinance), and stabilising before the trend becomes a default.
The 7-day window
- Day 1-2: pull the last 6 months of card volume by week. Check if the decline is steady, accelerating or stabilising.
- Day 3: identify the cause. Demand-driven, supply-driven, or one-off. Different restructures fit different causes.
- Day 4: call the existing MCA lender's account-management team (not collections). Self-disclose with the data and a credible recovery plan.
- Day 5-6: if the existing lender's restructure is unworkable, run the FundBiz matcher for refinance options.
- Day 7: get the variation in writing before the next withhold lands.
Your 3 options
Option 1: Restructure with the existing lender. The cheapest, fastest route if the decline is recent and the recovery plan is credible. Usual variations: term extension, withhold rate reduction, partial top-up.
Option 2: Refinance into a term loan. Replaces the variable-cost MCA with a fixed-cost term loan. Allica Bank, OakNorth, Aldermore, iwoca term loans are the typical destinations. Requires 2+ years trading, turnover above threshold, no recent CCJs.
Option 3: Diversify the funding mix. Add an asset refinance against owned plant, an invoice finance line against B2B receivables (sister site MarketInvoice), or a VAT loan to take quarterly pressure off.
What to avoid
- Letting the lender raise the trend first. Self-disclosure is the single highest-return action.
- Stacking a second MCA. Single most common trigger for default and PG enforcement.
- Restructuring twice in 12 months without addressing the underlying cause. Two restructures inside a year is a red flag.
- Funding the withhold from creditor delays. Stretching suppliers and HMRC to fund the MCA looks like cashflow management for two months and like trading-while-insolvent at three.
FAQs
How is "sales down mid-MCA" different from "card takings collapsed"?
Card takings collapsed describes a sharp short-term drop, typically 25%+ over a few weeks, often single-cause. Sales declining is a slower trend, 10% to 20% over months, usually demand-driven rather than incident-driven. This page covers the slower trend.
Will the MCA lender notice a slow decline?
Yes. MCA lenders monitor split-funding card data continuously. A 3-month rolling decline triggers a review at most lenders, usually a phone call from account management asking what is going on. Self-disclosure before that call lands much better than the lender raising it.
What restructuring options does the existing MCA lender offer?
Term extension (most common), withhold rate reduction, partial top-up to fund a recovery initiative, payment holiday (rare, lender-specific), or full refinance into a structured loan with the same lender. Capify, 365 Business Finance, Liberis and YouLend all run restructuring teams.
Can I refinance an MCA into a term loan during a slow decline?
Possible but harder than during stable trading. The bar is 2+ years trading, turnover above threshold, no recent CCJ, demonstrably temporary (not structural) decline. Allica Bank, OakNorth, Aldermore and iwoca term loans are the typical destinations.
Should I cut the withhold rate or extend the term?
Term extension keeps the percentage of card volume that goes to the lender stable but stretches the duration. Withhold rate reduction takes immediate pressure off cashflow but extends duration further. The right choice depends on whether the recovery is in volume or in margin.
What restructure looks like trouble vs what looks like normal management?
Normal: a single restructure that the lender agrees to, executed before any missed withhold, with a clear recovery plan. Trouble: a second restructure on top of the first, multiple missed withholds, restructure paired with HMRC arrears or supplier disputes.
Is invoice finance a way out if I have B2B receivables?
For some businesses yes. If the slow decline is in card-paid retail but the B2B side has receivables, an invoice finance facility can run alongside (with explicit lender consent) or replace the MCA. This is covered at sister site MarketInvoice in detail.
Run the matcher
Tell us your current MCA lender, the trend duration, recent card volume and trading metrics. We surface restructure, refinance and diversify routes that fit the cause of the decline.
Open MCA restructure matcher →By Oliver Mackman. Last reviewed 10 May 2026.