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MCA funder merchant industry mix (typical 2026)

Typical 2026 MCA funder merchant industry mix: restaurants 22–28%, retail 15–20%, professional services 10–15%, trucking 8–12%, construction 7–10%, healthcare 5–8%, auto services 5–7%, beauty 3–5%, other 8–15%.

By Keerthana Keti5 min read

MCA funder merchant industry mix reveals where MCA capital is most concentrated and which sectors drive the most volume. In 2026, the mix has stabilized after pandemic-driven swings.

Industry-wide mix (2026 typical).

  • Restaurants and food service: 22–28% of MCA volume.
  • Retail (specialty, non-grocery): 15–20% of MCA volume.
  • Professional services (legal, accounting, consulting): 10–15% of MCA volume.
  • Trucking and transportation: 8–12% of MCA volume.
  • Construction and contracting: 7–10% of MCA volume.
  • Healthcare (dental, medical practices, urgent care): 5–8% of MCA volume.
  • Auto services (repair, dealers, body shops): 5–7% of MCA volume.
  • Beauty and personal care: 3–5% of MCA volume.
  • Manufacturing and wholesale: 3–5% of MCA volume.
  • Other (services, niche): 8–15% of MCA volume.

Why restaurants dominate.

Restaurants represent the largest single industry segment in MCA:

  1. High deposit volume ($40K–$200K monthly average).
  2. Predictable card-sale revenue (60–80% of revenue via card processing).
  3. Frequent capital needs (inventory, equipment, expansion, seasonal swings).
  4. Difficulty accessing bank loans (high failure rate, low collateral).
  5. Toast Capital and Square Capital depth in restaurant vertical.
  6. Restaurant-focused funders (Toast Capital, Restaurant Funding, restaurant-specific ISOs).

Industry mix by funder tier.

Top-tier funders (OnDeck, Credibly, Rapid): - Restaurants: 20%. - Retail: 18%. - Professional services: 15%. - Trucking: 10%. - Healthcare: 8%. - Construction: 8%. - Other: 21%.

Embedded finance (Square, Toast, Stripe): - Restaurants (Toast): 65–75% (specialized). - Retail/services (Square): 50–60% (specialized). - All other industries (Stripe Capital): broad mix matching Stripe's merchant base.

Mid-tier funders: - Restaurants: 25%. - Retail: 18%. - Trucking: 12%. - Construction: 10%. - Professional services: 10%. - Healthcare: 6%. - Auto: 8%. - Other: 11%.

Smaller funders / subprime specialists: - Restaurants: 30%. - Trucking: 15%. - Retail: 15%. - Construction: 12%. - Auto: 10%. - Beauty: 8%. - Other: 10%.

Industry mix by channel.

  • Embedded processor: Industry-specific (restaurants via Toast; broad SMB via Square; e-commerce via Stripe).
  • Bank-branch: Skews professional services, healthcare, manufacturing.
  • Direct online: Broad mix matching general SMB distribution.
  • Top ISO: Concentrated in restaurants, retail, trucking.
  • Mid-tier ISO: Concentrated in subprime industries (auto, beauty, sub-prime restaurants).

Industry mix trends 2024–2026.

  • Restaurants: Slight increase (22% → 25%) as embedded finance (Toast) drives volume.
  • Retail: Stable around 18%.
  • Trucking: Slight decrease (12% → 10%) as freight rates softened post-pandemic.
  • Healthcare: Slight increase (6% → 8%) as dental and urgent care expand.
  • Professional services: Slight increase (10% → 13%) as bank-branch channels grow.
  • Construction: Stable around 8%.

Industry-specific factor rate variation.

  • Restaurants: Industry average factor 1.32 (high volume, card-sale lock-in).
  • Retail: Industry average factor 1.30.
  • Trucking: Industry average factor 1.34 (irregular revenue, equipment lien complications).
  • Construction: Industry average factor 1.36 (project lumpy, lien risk).
  • Healthcare: Industry average factor 1.26 (lower-risk, stable revenue).
  • Professional services: Industry average factor 1.25 (lowest risk, stable receivables).
  • Auto services: Industry average factor 1.38.
  • Beauty: Industry average factor 1.40 (higher risk).

Industry-specific default rates.

  • Restaurants: 12–16% default rate (revenue volatility, high failure rate).
  • Retail: 11–14% default rate.
  • Trucking: 14–18% default rate (industry cyclicality).
  • Construction: 13–17% default rate (project risk, weather).
  • Healthcare: 5–8% default rate (lowest, stable revenue).
  • Professional services: 6–9% default rate.
  • Auto services: 14–18% default rate.
  • Beauty: 18–22% default rate (highest, high failure rate).

Industry-specific advance sizes.

  • Restaurants: $25K–$150K average advance.
  • Retail: $20K–$100K average advance.
  • Trucking: $30K–$100K average advance.
  • Construction: $50K–$250K average advance (project-driven).
  • Healthcare: $50K–$300K average advance (equipment, expansion).
  • Professional services: $25K–$150K average advance.
  • Auto services: $20K–$80K average advance.
  • Beauty: $10K–$40K average advance.

Industry-specific renewal rates.

  • Restaurants: 55–65% renewal (seasonal recurring needs).
  • Retail: 50–60% renewal.
  • Trucking: 45–55% renewal (industry shake-out).
  • Construction: 50–60% renewal.
  • Healthcare: 65–75% renewal (highest, long-term capital needs).
  • Professional services: 60–70% renewal.
  • Auto services: 45–55% renewal.
  • Beauty: 40–50% renewal.

Industry-specific funders.

Specialized funders by vertical:

  • Restaurants: Toast Capital, Restaurant Funding, Reliant Funding (restaurant focus).
  • Trucking: Mission Financial, Truck Lenders USA, RTS Financial.
  • Construction: ConstructionLoans.com, Triumph Business Capital.
  • Healthcare: Bankers Healthcare Group, Health Capital Investors.
  • Professional services: Specialized through banking partnerships.

Specialized funders typically offer: - Lower factor rates within their vertical. - Faster decisioning with industry-specific underwriting models. - Larger advance sizes for established merchants. - Industry-knowledgeable account managers.

Industry mix regional variation.

  • Florida: Higher restaurant and tourism mix.
  • Texas: Higher construction and trucking mix.
  • California: Higher professional services and retail mix.
  • New York: Higher restaurant, retail, professional services mix.
  • Midwest: Higher manufacturing, trucking, auto mix.
  • Southeast: Higher construction, retail, restaurant mix.

Industry mix seasonality.

  • Q1 (Jan-Mar): Tax-driven capital needs (professional services, retail post-holiday).
  • Q2 (Apr-Jun): Construction season ramp-up, restaurant patio prep, retail summer.
  • Q3 (Jul-Sep): Back-to-school retail, peak restaurant, peak construction.
  • Q4 (Oct-Dec): Holiday retail surge, restaurant catering season, year-end professional services.

Funders see deal volume mix shift seasonally by 5–15% per industry.

2026 industry mix trends.

  1. Embedded finance reshaping restaurant volume: Toast Capital captures growing share.
  2. Healthcare growing: Dental, urgent care, telemedicine driving demand.
  3. Trucking under pressure: Freight rate softening reducing trucking applications.
  4. Cannabis sector emerging: State-legal cannabis businesses increasingly accessing MCA (12 states now allow).
  5. E-commerce growing via Stripe Capital: Online retail merchants accessing MCA via processor.
  6. AI-powered industry-specific underwriting: Funders training vertical-specific risk models.
  7. Section 1071 reporting: Standardized industry tracking improving data quality.

Common confusions. - "MCAs are mostly for restaurants." Partially true — restaurants are largest single segment but only 22–28%. - "Industry doesn't affect MCA pricing." False — factor rates vary 0.10–0.15 across industries. - "All MCA funders serve all industries." False — many funders exclude certain industries (cannabis, adult entertainment, firearms, gambling) or specialize in specific verticals.

Takeaway. Typical 2026 MCA funder merchant industry mix: restaurants 22–28% (largest), retail 15–20%, professional services 10–15%, trucking 8–12%, construction 7–10%, healthcare 5–8%. Factor rates vary by industry (1.25 healthcare to 1.40 beauty). Specialized funders (Toast Capital for restaurants, Mission Financial for trucking, BHG for healthcare) compete on industry expertise. Embedded finance, healthcare growth, and cannabis emergence are key 2026 trends reshaping industry mix.

Related terms

  • MCA funder merchant portfolio quality trends (2026) — 2026 MCA funder portfolio quality is bifurcating: top funders shifting to A/B-paper (60–75% of portfolio, default rates 5–8%); smaller funders pushed into C/D-paper (40–60% of portfolio, default rates 15–25%).
  • MCA funder merchant deposit volume distribution (2026) — 2026 MCA funder merchant monthly deposit volume distribution: under $10K (10–15% of portfolio), $10K–$25K (20–30%), $25K–$50K (25–30%), $50K–$100K (15–25%), $100K+ (10–20%); industry average $42K monthly deposits.
  • MCA funder merchant business age distribution (2026) — 2026 MCA funder merchant business age distribution: 0–6 months 2–4% (startup paper), 6–12 months 8–12%, 1–2 years 18–25%, 2–5 years 30–40%, 5–10 years 20–25%, 10+ years 8–15%; industry average 4.2 years.
  • MCA funder merchant credit score distribution (2026) — 2026 MCA funder merchant FICO score distribution: A-paper 650+ (35–45% of industry portfolio), B-paper 580–649 (25–35%), C-paper 500–579 (15–25%), D-paper sub-500 (5–15%); top funder average FICO 670+, smaller funder average 560.

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