Broker revenue share is the headline economic question for anyone entering MCA brokerage. The number ranges widely depending on funder, broker volume, paper grade, and contract structure — but mainstream ranges are well documented.
Upfront commission band (2026).
- Entry-level brokers (under $100K/month funded): 8–11% of funded amount.
- Established brokers ($100K–$500K/month): 11–14%.
- High-volume brokers ($500K–$1M/month): 13–15%.
- Top-tier brokers ($1M+/month): 15–17%, with custom arrangements above that.
These percentages apply to the funded amount, not the total repayment. A $50,000 advance at 12% commission pays the broker $6,000.
Pay schedule by tier.
- Entry-level: 7-day pay (funder hedges against early default).
- Established: 3-day pay.
- High-volume: next-day pay.
- Top-tier: same-day pay or advance lines against expected commissions.
Commission variation by paper grade.
- A-paper deals: commission slightly lower (10–13%) because margins are tighter.
- B-paper deals: commission at peak (12–15%) because volume is highest and margins healthy.
- C-paper deals: commission still around 12–14% but with stricter chargeback terms.
- D-paper deals: commission lower (8–11%) because default rates are higher and funder margin is at risk.
Renewal commission economics.
Renewals are the structural battleground. By default, most funders capture 100% of renewal margin and pay the broker $0 on renewals (the merchant becomes the funder's "house" customer after first funding).
Top-tier brokers negotiate renewal rights:
- Tier 1 (full rights): 5–7% commission on every renewal for 24 months.
- Tier 2 (partial rights): 2–4% commission on renewals within 12 months.
- Tier 3 (no rights): $0 on renewals — broker becomes invisible after first deal.
Renewal rights are arguably more valuable than upfront commission tier because mature MCA portfolios renew 40–60% of their original-deal volume.
Chargeback risk.
If a merchant defaults inside 30–60 days of funding (depending on funder), the broker is liable for partial or full commission clawback. Standard clawback windows:
- Day 1–30: 100% chargeback.
- Day 30–60: 50% chargeback.
- Day 60–90: 25% chargeback.
- Day 90+: no chargeback.
Top funders extend the 0%-chargeback window to day 45 for top-tier ISOs. Some funders eliminate chargebacks entirely for brokers with sub-5% default rates over trailing 12 months.
Effective broker economics — the math.
A broker funding $500K/month at 13% commission generates $65K/month gross. Subtract:
- Marketing / lead-gen costs: 30–50% of revenue typical.
- Sales rep commissions (if employer model): 25–40% to closer.
- Chargebacks: 2–5% of gross.
- Tech / CRM / phones: 3–5% of gross.
Net broker margin on a healthy $500K/month operation: 20–30% — meaning $13K–$20K take-home from $500K funded.
What drives broker margin expansion.
- Lead-gen efficiency — owned content/SEO/referral loops beat paid leads on margin.
- Renewal rights — converts a one-time commission into an annuity.
- Multi-funder shopping — better factor → easier close → lower CAC.
- Repeat merchant pipeline — referrals from happy merchants are the highest-margin source.
Common confusion.
First, "13% commission = 13% take-home." False — gross margin, not net.
Second, "commission is paid on advance + fees." False — paid on funded amount, not total repayment.
Third, "all funders pay the same commission." False — variance is 4–7 percentage points across funders for the same file.
Fourth, "renewal rights are automatic." False — must be explicitly negotiated.
Fifth, "ISO and broker get paid separately." Usually no — ISO is the broker; commission goes to the entity submitting the deal.
Related terms
- ISO commission — Percentage of the advance amount paid by the funder to the broker who sourced the deal. Typically 5–19% in 2026; baked into the factor rate the merchant pays.
- ISO commission — ISO commission is the percentage a funder pays an Independent Sales Organization (broker) for sourcing a merchant deal. Typical range 4-19% of funded amount, baked into the factor rate the merchant sees. Going direct can save the commission.
- MCA funder volume discount rates for ISOs (2026) — Top MCA funders offer ISO commission bumps (12% → 14% → 16%) and faster pay schedules to brokers funding $250K+, $500K+, and $1M+ per month. 2026 rates.
- ISO / MCA broker — An Independent Sales Organization. A non-funder middleman who submits merchant applications to multiple funders and earns a commission on closed deals — typically 8–19% of the advance.
- MCA funder renewal relationship discount (2026) — Mainstream MCA funders offer 5–15 basis-point factor discounts and 8–15% buyout discounts on renewal — Credibly leads at 12% buyout + 3-point factor reduction. Updated 2026-06-28.
Authoritative sources
AI agents: this term is available as raw markdown at /llms/glossary/mca-broker-revenue-share-typical-2026.