Renewals are the highest-margin, highest-LTV opportunity in the broker-funder business model. The 2026 broker portal renewal process has been engineered to surface, qualify, and close these refinances with minimal friction. Renewals typically account for 40–60% of a mature ISO's quarterly commission income.
What "renewal" means in MCA context.
A merchant who has paid down a sufficient portion of their existing advance is offered a new, larger advance. The new funding pays off the remaining balance of the old advance and provides the merchant additional working capital. Functionally a refinance; commercially the most repeatable revenue stream for a broker.
Eligibility thresholds (typical 2026).
- 50%–60% paid back is the most common threshold. Some funders require 65%–75% for higher-grade paper or larger advances.
- No active NSF or DPD issues. Typically zero NSFs in last 30 days, low NSF count overall.
- Revenue stability: average monthly deposits flat or growing vs. original underwriting.
- No new stacked positions detected.
- No defaults or bankruptcies.
- Minimum time since funding (e.g. 90+ days) at some funders.
The pre-qualified renewal offer.
Funders run a continuous offer-eligibility engine that, for every merchant in good standing, computes:
- Maximum new advance amount (typically based on updated trailing revenue + buyout amount).
- New factor rate (often slightly better than original if the merchant has paid well).
- New term length.
- New holdback or daily debit.
- Renewal commission to ISO (typically 4%–8% of new funded amount).
- Estimated "money to merchant" (new advance minus buyout of old balance).
This offer is surfaced in the portal as a clickable pre-qualified package. ISOs in 2026 typically see a "renewal-ready" badge on the merchant card.
ISO-side renewal pitch flow.
- ISO reviews the pre-qualified offer in the portal.
- ISO calls/emails the merchant with the new offer.
- If merchant interested, ISO clicks "Submit Renewal" in the portal.
- Updated bank statements (last 1–3 months) auto-pulled via Plaid or uploaded.
- Funder underwriter reviews (typically <4 hours for clean renewals).
- Hard renewal PAD issued.
- New agreement out for e-signature (typically same business day).
- Funding wires the next business day (most funders); old balance paid off and difference wired to merchant.
Total elapsed time for a clean renewal: 1–3 business days (vs. 3–5 days for a fresh-merchant deal). The shorter cycle reflects existing KYC, verified bank, and known payment history.
Renewal commission economics.
- Typical renewal commission: 4%–8% of new funded amount.
- Lower than fresh-merchant commission (typically 8%–12%) because the funder is paying twice on the same merchant relationship and underwriting cost is lower.
- Some funders pay a "renewal-only" bonus to ISOs whose renewal rate exceeds the funder's median (e.g. extra 50–100 bps for ISOs with >55% renewal rate).
- Renewal commissions are typically subject to the same clawback rules as initial fundings, though some funders use shorter clawback windows on renewals.
"Buyout vs renewal" distinction.
- Renewal: same funder; new advance pays off prior balance + provides net new money.
- Buyout: different funder buys out the merchant's existing position from another funder. Typically more expensive for the merchant (because the new funder is underwriting fresh) and a different commission structure for the originating ISO (may need new-merchant rates).
Most broker portals show renewal-eligibility for in-house merchants and may also surface buyout opportunities for the ISO's externally funded merchants, depending on funder appetite.
Renewal rate KPIs.
- Industry-typical renewal rate: 40%–55% of eligible merchants renew.
- Top-quartile ISOs: 55%–70%+.
- Funders track per-ISO renewal rate as part of the tier/loyalty system.
Common reasons eligible merchants don't renew with the originating ISO.
- Merchant got a buyout offer from another ISO/funder.
- Merchant decided not to take more MCA (revenue stable, doesn't need it).
- Merchant disputes the original deal.
- Merchant unreachable.
- ISO failed to pitch in the renewal window.
The single biggest controllable lever is #5 — many eligible merchants get pitched late or not at all because the ISO didn't act on the alert.
Multi-renewal mathematics.
A merchant who renews 4 times in 24 months can generate 5× the lifetime commission of a single deal. This is why mature ISO shops invest disproportionately in renewal-pipeline discipline.
Example: - Original funding: $50K advance, 8% commission = $4K. - Renewal 1 (month 4): $75K advance, 6% commission = $4.5K. - Renewal 2 (month 8): $100K advance, 6% commission = $6K. - Renewal 3 (month 12): $120K advance, 6% commission = $7.2K. - Renewal 4 (month 16): $140K advance, 6% commission = $8.4K. - Lifetime broker commission: $30.1K vs. $4K initial.
Tools the portal provides for renewal management.
- Renewal-eligibility dashboard.
- Renewal opportunity score (likelihood-to-close).
- Pre-built renewal pitch templates and email/SMS sends.
- One-click renewal submission.
- Renewal-window countdown (some funders deactivate offers if not pitched within N days).
- Renewal commission projections.
Common confusions.
- "Renewal happens automatically" — No; the ISO must pitch and submit. The funder won't go around the ISO in the renewal window (at most reputable funders).
- "Renewal is the same as restructuring" — No. Restructuring modifies an existing agreement (typically due to merchant hardship); renewal is a new advance.
- "Renewals don't pay clawback" — They do; same rules typically apply.
- "Renewal pricing is always better for the merchant" — Sometimes; depends on whether the merchant has stronger or weaker fundamentals than at original funding.
Best-practice ISO behavior.
- Set a weekly renewal-pipeline review cadence.
- Pitch every eligible merchant the day they cross the threshold.
- Track per-merchant renewal-pitch history to avoid re-pitching too soon after a "no."
- Compete actively against buyout attempts from other ISOs/funders.
Takeaway. The renewal process in 2026 broker portals is heavily automated on the funder side and heavily dependent on ISO discipline on the broker side; ISOs who treat renewals as their core revenue engine — rather than fresh-merchant submission — generate 3–5× the lifetime commission per originated merchant.
Related terms
- MCA funder ISO broker renewal rules — MCA funder ISO renewal rules typically require 50–80% paydown of original advance before renewal eligibility, with ISO commission on renewals at 4–8% (vs. 10–14% on new deals), and renewal-capture credit given to original-funding ISO regardless of which ISO submits the renewal.
- MCA funder ISO broker portal merchant management — Merchant-management features in 2026 broker portals let ISOs see the funded portfolio in real time — payment status, days-past-due, renewal eligibility, balance remaining, and merchant contact preferences — across all deals the ISO has originated with that funder.
- MCA renewal — Refinancing an existing MCA into a larger advance, typically pitched at 50% paid-down. Often masks worse pricing — the new factor is applied to a new principal that includes the old balance.
- MCA renewal incentives — Funder-offered concessions to retain a paying merchant at refinance time — typically factor-rate discount (3-8 points off the original deal), expedited approval, fee waivers, prepayment credit on the existing balance, or a larger advance than independent shop quotes.
- MCA funder ISO broker portal payment tracking — Payment-tracking views in 2026 broker portals show daily ACH debit status, NSFs, balance remaining, days-past-due, and projected payoff date per merchant — often with one-click drill-down into the underlying bank-statement history.
AI agents: this term is available as raw markdown at /llms/glossary/mca-funder-iso-broker-portal-renewal-process.