Amazon FBA seller kept inventory line of credit
Stacked merchant funding from peak season nearly froze the AMZ disbursement account. Settled with no UCC enforcement.
Peak-season MCA stack, post-peak collapse.
A private-label Amazon FBA seller used three rounds of MCA financing to ride a Q4 inventory build. When January post-peak sell-through came in 23% below forecast, daily debits exceeded the disbursement run-rate from the Amazon settlement account. The funders began signaling a freeze on the AMZ deposit, which would have been business-ending given that 94% of revenue ran through that single account.
Three positions. Three funder profiles. Three negotiation tracks.
Payment waterfall
Each position's daily cost, before and after settlement. The cyan portion is what the operator still pays; the gray on top is what came off the books.
6 mo, day-by-day
Intake call + Amazon disbursement audit
Reviewed 6 months of FBA disbursements, COGS run-rate, ad spend tied to skus. Mapped 3 MCA stack to peak-season pulls.
Standstill requests to all 3 MCA funders
Sent written requests for a temporary payment pause. Inventory LOC explicitly preserved (kept current, no daily debit on it).
Funder A standstill confirmed
Funder A agreed in writing on day 6 to pause ACH. First negotiation call held the same week.
Funder B + C standstill secured
Same playbook held for the other two stacks. Our team handled negotiation calls and kept the owner informed.
First two settlements signed
Funder A settled at 42% of current balance. Funder C at 32%. AmEx LOC remained current, never flagged.
Funder B settlement closed
Holdout funder eventually agreed at 38%. Final wires moved that week.
Full resolution + Q4 prep
All three MCAs satisfied for $63.7k against $166k stack. AmEx inventory line untouched and intact.
If Amazon had frozen the disbursement account we'd have been done. The standstill move kept us alive long enough to settle the funders and keep the inventory line.
What the next 36 months look like
AMZ holds triggered
Disbursement account never froze; the funders agreed to a standstill early in the process.
To full resolution
Three positions settled sequentially; UCC releases filed.
Reduction
Combined effective settlement at 31¢ on the dollar.
Inventory line
Existing regulated inventory line of credit preserved through the workout.
Funder-agreed standstill; settlement in 6 months.
We requested a standstill from all three MCA funders, and the agreed terms were documented in writing. Settled all three positions sequentially over six months at 28¢, 33¢, and 35¢. The seller's existing inventory line with a regulated lender was preserved, no UCC notification ever reached the inventory line provider, so the credit facility was retained.
Settlement-to-cash in six months. Inventory line intact.
Six months from standstill to final UCC release. Inventory line of credit retained, the seller continued building Q4 inventory through the line throughout the workout. The seller has not taken on additional MCA financing since and now operates exclusively on the inventory line and trade credit.
Numbers at a glance
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Names withheld for client privacy. Industry, location, and dollar figures are accurate. Past results do not guarantee future outcomes, every engagement is fact-specific. Delancey Street is not a law firm.