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Johny Fernandez: What is a true
up?

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Sean Murray: A true up? Okay,
good question. What is a true

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up? So a true up, in the
circumstance, I'm assuming in

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the context of which I'm
assuming it was asked is it true

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up is, this would be part
probably part of a merchant cash

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advance deal. And in a merchant
cash advance payments are

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supposed to be collected in
accordance with the revenue that

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a merchant generates. So there
are some companies that will

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debit out a fixed amount per
day. And that's supposed to be

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tied to how much they're
actually doing in revenue, it's

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based on a projection. Now,
let's say that the merchants

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revenue doubled. And the amount
that they the funder or lender

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collected, this is the funder
because it's the MCA, the amount

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that the funder collected was
really tied to what the normal

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volume would be. But now they
found out that the volume

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doubled, they technically would
be entitled to take double the

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money, because that would be
consistent with the revenue

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that's being generated. And a
merchant could choose to true up

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the deal by saying please debit
out even more than what you've

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already taken, so that we're
living up to the, you know, the

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exact precise arrangement of the
contract. However, on the flip

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side, and here's where it's most
often talked about, because most

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merchants don't want to pay more
sooner is, let's say the the

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business, the revenue dropped in
half. And the merchant said, you

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took this amount of money, and
that was supposed to be in

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relationship, this volume of
revenue, but my revenue dropped

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in half. And so now the amount
you took, is technically more

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than you were supposed to. So
they can true it up by saying,

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here's what my actual revenue
was, you know, this shows some

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kind of proof. Here's my bank
statement. And then the funder

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is supposed to, as long as the
merchant has everything that

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they're supposed to, the funder
is supposed to refund, the

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overage that they collected to
be consistent for the collection

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to have been consistent with the
terms of the actual MCA

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arrangement and they call that
truing it up or a true up.