The 60-second answer
MCA factor rates vary materially by industry — by 4–10 points of factor on otherwise equivalent merchant files. The variation isn't because funders dislike certain industries; it's because portfolio loss curves differ. Industries with higher default rates and weaker collateral pay higher factors.
- Cheapest industries (1.12–1.20 typical): medical practices outside specialty lender eligibility, established professional services, franchise locations of well-known brands.
- Mid-range industries (1.18–1.28 typical): stable retail, construction with collateral, B2B services, established restaurants with multi-year track records.
- Higher-cost industries (1.24–1.34 typical): early-stage restaurants, small/independent retail, trucking when MCA is used instead of factoring, salons and personal services.
- Highest-cost industries (1.32–1.42 typical): very early-stage businesses (4–9 month TIB), industries with high seasonality and no collateral, previously-defaulted businesses with thin recovery history.
How we built the benchmark
The ranges below come from quote collection across 60+ MCA funders over Q1–Q2 2026, adjusted for broker markup using the funder's published "buy rate" where available. We've also cross-referenced with public filings from larger funders (Forward Financing, Credibly, Kapitus) and industry analyst data where available.
Important caveats: (1) these are typical ranges, not guarantees. (2) Individual file variation can move you 0.04–0.08 from the typical range. (3) Broker markup adds another 0.02–0.06 on top in many cases. The ranges below assume direct-to-funder pricing.
Restaurants — typical 2026 ranges
By restaurant subtype
- Multi-location independents (3+ units): 1.16–1.24
- Franchise locations (recognized brand): 1.16–1.22
- Single-location established (24+ months): 1.20–1.28
- Single-location early stage (6–24 months): 1.24–1.34
- Toast Capital eligible (single-location restaurants on Toast): 1.12–1.20
- Square Capital eligible (Square-processing restaurants): 1.10–1.18
Trucking — typical 2026 ranges
Important framing: most trucking businesses should be using factoring before MCA. Factoring is structurally cheaper for receivable-backed working capital. The MCA ranges below apply when MCA is the right tool (non-receivable needs or factoring exhausted).
- Multi-truck small fleets (5–30 trucks) with clean history: 1.20–1.28
- Owner-operators (1–3 trucks) with 2+ year MC authority: 1.22–1.30
- New MC authority (under 12 months): 1.30–1.40
- Specialty haul (hazmat, oversize, refrigerated): 1.18–1.26 (premium for haul, discount for revenue stability)
Construction — typical 2026 ranges
By contractor type
- Established general contractor (5+ years, >$2M revenue): 1.18–1.24
- Specialty trade contractor (HVAC, electrical, plumbing): 1.20–1.28
- Residential remodeler: 1.22–1.30
- Landscaping and outdoor services: 1.24–1.32
- New contractor (under 24 months): 1.28–1.38
Construction defaults at the lowest rate of the major MCA-borrowing industries (3–7% portfolio), which is why the typical range is tighter than restaurants or salons.
Retail — typical 2026 ranges
- Established multi-location retail: 1.18–1.24
- Single-location specialty retail (>2 years): 1.22–1.30
- Convenience and liquor stores: 1.20–1.28
- Gas stations and c-stores: 1.22–1.30
- Early-stage independent retail (under 18 months): 1.28–1.36
- Square Capital eligible: 1.10–1.18
- Shopify Capital eligible (DTC ecommerce): 1.10–1.22
Ecommerce — typical 2026 ranges
Platform-integrated capital dominates ecommerce. Pure open-market MCA on ecommerce merchants is rare and tends to price worse than the platform options.
- Amazon Lending: 1.06–1.20 (effective)
- Shopify Capital: 1.10–1.22 (effective)
- Stripe Capital: 1.08–1.18 (effective)
- Open-market MCA for multi-channel DTC: 1.18–1.30
- Revenue-based financing (Clearco, Pipe, etc.): ~1.06–1.12 effective (different structure than MCA)
Healthcare — typical 2026 ranges
Most healthcare practices should not be on an MCA. BHG, Live Oak SBA, Provide, and healthcare AR financing are dramatically cheaper. The ranges below apply only when those specialty paths fail or the merchant needs cash faster than they can deliver.
- Medical / dental practice with 2+ years (when MCA is used): 1.18–1.28
- Veterinary practice: 1.18–1.26
- Chiropractic / physical therapy: 1.20–1.30
- Health and wellness (non-licensed): 1.22–1.32
- BHG unsecured loan (licensed professional): 12–22% APR (not MCA structure)
- Live Oak SBA 7(a): 10–11% APR (not MCA structure)
Professional services — typical 2026 ranges
- Established accounting / legal / consulting (5+ years): 1.16–1.22
- Architecture / engineering: 1.18–1.24
- Marketing agencies / creative services: 1.20–1.28
- IT services / managed services providers: 1.18–1.26
- Real estate brokerages: 1.20–1.28
- Insurance agencies: 1.16–1.22
Salons, spas, and personal services
- Established multi-location salon / spa: 1.20–1.28
- Single-location salon (3+ years): 1.22–1.32
- Early-stage salon / spa (6–18 months): 1.28–1.38
- Personal training / fitness studios: 1.24–1.34
- Daycare and childcare: 1.22–1.30
Auto services — typical 2026 ranges
- Established multi-bay auto repair: 1.18–1.26
- Single-location auto repair (3+ years): 1.20–1.28
- Auto body / collision: 1.20–1.28
- Towing services: 1.24–1.34 (often declined by mainstream funders)
- Used car dealerships: 1.26–1.36 (frequently declined; many funders exclude)
Hospitality and lodging
- Boutique hotel / B&B (established): 1.18–1.28
- Franchise hotel: 1.16–1.24
- Event venue / banquet hall: 1.22–1.32
- Bar / nightclub: 1.26–1.36 (frequent exclusions on liquor-heavy revenue mix)
What moves your factor inside the industry range
- Time in business. Each additional year inside the typical range moves you ~0.01–0.02 lower. 5+ years often unlocks the bottom of the range.
- Revenue stability. Trailing 6-month revenue with low variance unlocks better pricing than higher-revenue-with-volatility.
- FICO. 720+ helps. Below 600 pushes you toward the top of the range. Between 600–720, FICO is less material than industry.
- NSF history. Zero NSFs in trailing 90 days is significant. Recurring NSFs push you out of mid-tier funder appetite entirely.
- Open MCA positions. Zero open = mid to bottom of range. One open = top of range. Two+ open = most mid-tier funders decline.
- Industry exclusions. If your specific NAICS code is on the funder's exclusion list, your offer is from the smaller pool of permissive funders — typically 0.02–0.06 worse pricing.
The watch-outs
- Broker markup. Quoted factor often includes a 0.02–0.06 markup over the funder's actual buy rate. Always ask for the funder quote, not the broker quote.
- "Headline" rates vs effective rates. Some funders quote a low factor but include origination fees, processing fees, or ACH fees that effectively raise the cost.
- Term length compresses APR. A 1.24 factor on a 6-month term has a higher APR-equivalent than the same factor on an 18-month term. Always check the APR.
- Renewal pricing. First-cycle pricing is often the worst pricing a performing merchant will see. Second and third renewals typically drop 0.04–0.08.
Frequently asked questions
- Why do MCA rates differ so much by industry?
- Funders price for their industry-specific loss curves. Restaurants default at ~10–14% on MCA portfolios. Construction defaults at ~4–7%. That delta drives material pricing differences on otherwise-equivalent merchant files. Industries with higher default rates pay higher factors — not because the merchant is worse, but because the portfolio losses are larger.
- What's the cheapest industry for MCA in 2026?
- Medical practices that don't qualify for BHG or SBA (rare), professional services with stable B2B revenue, and franchise locations of well-known brands. Factors can dip to 1.12–1.18 on these files. Most other industries see 1.18–1.32 typical.
- What's the most expensive industry?
- Industries with high seasonality and minimal collateral — restaurants in their first 18 months, small retail without strong online channel, and certain trucking categories (long-haul reefer, hazmat) when MCA is used instead of factoring. Factors can reach 1.32–1.42 on these files.
- Are these rates negotiable?
- Always. Brokers mark up the funder's quote by 0.02–0.06 on average. Asking the broker for the funder's actual buy rate, or using a marketplace that surfaces it, often saves 1–3 percentage points of factor.
- Do these rates change with FICO?
- Yes — but less than most merchants think. A 580 FICO and a 700 FICO restaurant owner with similar revenue often get factors within 0.04–0.06 of each other. The industry and revenue profile drive more of the rate than FICO does.