Inside a mid-to-large MCA funder, the portfolio manager (PM) function bridges underwriting and collections — owning the funded book and the merchant relationship from Day 1 of funding through final payment or default.
Core responsibilities.
- Performance monitoring. Daily reporting on collections vs. expected, NSF rates, reconciliation requests, balance drawdowns.
- Reconciliation processing. Reviewing merchant requests to reduce daily payments based on revenue drop. Approving / denying / modifying within funder-set guidelines.
- Renewal underwriting. When merchant is 50%+ paid down, deciding whether to offer a renewal advance, what amount, what factor rate, and what terms.
- Default triage. When a merchant stops paying or stacks additional advances against the funder's authorization, deciding whether to (a) negotiate workout, (b) accelerate the contract, (c) refer to outside counsel for COJ / lawsuit, or (d) sell to a distressed buyer.
- Merchant communication. Direct contact with merchants who request modifications, have questions, or are in distress. The merchant-facing voice of the funder post-funding.
Team structure at a typical $100M+ funder.
- VP Portfolio. Owns overall portfolio health, reports to CEO / CFO. Sets reconciliation and default policies.
- Senior PMs (2–5). Each owns a book of $20M–$50M outstanding. Make individual case decisions.
- Junior PMs / Account Managers (5–15). Day-to-day merchant communication, reconciliation intake, renewal pitches.
- Collections specialists (3–10). Handle 30+ day delinquencies, NSF follow-up, payment plan negotiation.
- Default / workout team (1–3). Take over 60+ day delinquencies, manage litigation referrals, COJ filings, settlements.
At smaller funders (under $25M outstanding), all these functions collapse into 1–3 people who do everything.
Performance metrics PMs are judged on.
- Collection rate (actual collections / expected collections per period).
- Reconciliation rate (% of book in active reconciliation).
- Renewal rate (% of paid-off merchants who renew with the funder).
- Default rate (% of book that defaults vs. underwriting assumption).
- Recovery rate (cents on dollar recovered post-default).
Compensation structure.
Base salary $65K–$120K depending on level + bonus tied to portfolio metrics. Senior PMs at larger funders can earn $150K–$300K with bonus. Renewal-focused PMs may also get commission on renewal volume (2–4% of renewal advance).
Tools used.
- CRM. Salesforce, HubSpot, or specialty MCA CRMs (Centrex, OnyxIQ, LendSaaS).
- Bank monitoring. Decision Logic, Plaid, MX for daily account monitoring.
- Collections software. Specialty MCA collections platforms.
- Internal dashboards. Custom BI on portfolio performance.
Reconciliation philosophy varies sharply by funder.
- Merchant-friendly funders. OnDeck, Forward Financing, Credibly have published reconciliation policies, respond in 5–10 days, often approve.
- Aggressive funders. Some smaller shops resist reconciliation, require certified-mail demand, or deny if revenue drop is below 30%.
- Predatory funders. A handful refuse reconciliation entirely and rely on COJ language to enforce full payment — these are increasingly being sued by state AGs and the FTC.
Common confusion. First, the PM is NOT the underwriter — different team, different decision authority. Second, the PM is NOT collections — collections is post-default; PM is pre-default relationship management. Third, the PM does NOT usually have authority to settle for less than full balance — that escalates to VP or workout team.
Related terms
- Reconciliation (MCA) — A contract provision allowing merchants to request a reduced daily debit when revenue drops. Required for MCAs to remain legally a 'sale,' not a 'loan' in most states.
- MCA renewal relationship discount — A factor-rate reduction that funders offer existing merchants at renewal as a customer-retention incentive; typical discount is 0.02–0.08 off the factor (e.g., 1.32 → 1.27), worth $2K–$8K on a $100K advance, but rarely volunteered — merchants must ask and threaten to leave.
- MCA default — Breach of MCA repayment terms — usually triggered by missed daily ACH debits, NSFs, or unauthorized stacking. Consequences range from increased collection pressure to UCC enforcement and personal-guarantee pursuit.
- MCA funder due diligence — The merchant-side process of evaluating an MCA funder before signing — covering funder identity, regulatory status, capital backing, complaint history, default-enforcement reputation, and contract terms (COJ, reconciliation, prepayment, broker fees) — to surface predatory practices before they bind.
AI agents: this term is available as raw markdown at /llms/glossary/mca-portfolio-manager-roles.