# MCA broker revenue share typical (detailed, 2026)

> Typical MCA broker revenue share is 7–11% of advance amount on first deals and 4–7% on renewals in 2026, with custom top-broker programs reaching 12–15% and elite renewal rates of 8–10%.

Revenue share is the foundation of MCA broker economics. Understanding standard structures, tier ranges, and recent compression trends is essential for any ISO operation. Updated 2026-06-28.

**Standard revenue share structure.**

Broker compensation in MCA has three layers:

1. **Commission on first deal funding** (largest component, paid at funding).
2. **Commission on renewal funding** (smaller percentage, paid on each renewal).
3. **Bonus or override structures** (volume-based, paid quarterly or annually).

**First-deal commission ranges (2026).**

- **Entry-tier broker (under $100K/month):** 7–9% of advance.
- **Producer-tier broker ($100K–$500K/month):** 8–10% of advance.
- **Mid-market broker ($500K–$2M/month):** 9–11% of advance.
- **Top-tier broker ($2M–$5M/month):** 10–12% of advance.
- **Elite broker ($5M+/month):** 11–14% of advance.
- **Custom programs (top 20 nationally):** up to 15% of advance.

**Renewal commission ranges (2026).**

- **Entry-tier broker:** 4–6% of renewal advance.
- **Producer-tier broker:** 5–7% of renewal advance.
- **Mid-market broker:** 6–8% of renewal advance.
- **Top-tier broker:** 7–9% of renewal advance.
- **Elite broker:** 8–10% of renewal advance.

**Bonus structures.**

- **Volume bonus.** Quarterly bonus tied to total funded volume. Typically 0.5–1.5% of quarterly volume above threshold.
- **Persistency bonus.** Annual bonus tied to renewal rate. Typically $25K–$200K depending on volume tier.
- **Quality bonus.** Annual bonus tied to default rate. Typically $10K–$100K depending on portfolio performance.
- **Marketing development funds (MDF).** $5K–$200K/year depending on tier; funds marketing initiatives.

**How commissions are paid.**

- **Cash on funding.** Most common — commission paid to broker bank account on day of advance funding.
- **Hold-back/clawback.** Some funders hold 10–30% of commission for 60–90 days; reversed if deal defaults early.
- **Deferred.** Top-broker programs sometimes defer 25–50% of commission to align broker with portfolio performance.

**Calculating effective broker take.**

A $100K advance with 10% commission = $10,000 broker take.

If the deal renews 9 months later for $120K with 8% commission = $9,600 renewal commission.

If 30% of broker's portfolio renews on average, expected lifetime value per first-deal funding:

- First deal: $10,000.
- Expected renewal value: 30% × $9,600 = $2,880.
- Total LTV: $12,880.

**Broker P&L economics.**

Standard broker shop operating with $1M/month funded volume at 10% commission:

- Gross commission: $100K/month, $1.2M/year.
- Customer acquisition cost (CAC): typically $200–$500 per submitted application, $1,500–$3,500 per funded deal.
- Operating overhead: salaries, lead costs, technology, compliance.
- Net margin after CAC and overhead: typically 15–30% of gross commission.

**Sub-broker arrangements.**

Master brokers often split commission with sub-brokers:

- Standard split: 50/50 to 70/30 (master/sub).
- Sub-broker delivering deals via master broker pipe pays 30–50% of commission to master.
- Sub-broker maintaining direct funder relationship keeps 100% commission.

**Direct vs. broker channel comparison.**

Funders pay broker channel premium over direct because:

- Brokers screen deals before submission (saves underwriter time).
- Brokers educate merchants on product expectations.
- Brokers handle post-funding merchant communication.

Direct-to-funder applications save broker commission but lack pre-screening; funders compensate with direct marketing investment instead.

**Commission compression trends 2023–2026.**

- **2023:** Standard commission 9–12% on first deals; PE consolidation begins.
- **2024:** PE-owned funders compress mid-tier brokers to 8–10%.
- **2025:** Further compression as PE sponsors push margin discipline; entry-tier brokers see 7–9%.
- **2026:** Stabilization at compressed levels; top brokers maintain premium tiers via volume.

**State-specific variations.**

- **Disclosure states (CA, NY, IL, VA, GA, UT, CT):** brokers must disclose commission to merchant; sometimes leads to commission negotiation.
- **Non-disclosure states:** standard tier rates apply without merchant visibility.

**Industry-specific commission variations.**

- **Restaurant:** 8–11% standard.
- **Trucking:** 7–10% standard (lower due to higher default risk).
- **Cannabis:** 5–8% standard (specialty market).
- **Healthcare:** 9–12% standard (premium category).

**Stacking impact on commissions.**

- First-position deals: standard commission.
- Second-position deals: reduced commission (50–70% of first-position).
- Third-position deals: minimal commission or none at most funders.

**Defaulted deals.**

Most funders claw back commission if deal defaults within 30–60 days of funding. Some funders use 90-day default trigger. Established brokers negotiate longer protection periods.

**Negotiating leverage by tier.**

- **Entry-tier:** no leverage; accept standard rates.
- **Producer-tier:** limited leverage on rate; can negotiate marketing co-op.
- **Mid-market:** moderate leverage on rate and term improvements.
- **Top-tier:** strong leverage; custom programs available.
- **Elite:** complete custom structures including carve-outs.

**Multi-funder arbitrage.**

Brokers submitting deals to multiple funders can extract pricing competition:

- Submit same deal to 3–5 funders.
- Choose funder offering best merchant terms AND best broker compensation.
- Maintain multiple funder relationships to preserve negotiating leverage.

Funders aware of this dynamic; exclusive arrangements offer commission premium in exchange for submission exclusivity.

**Commission disclosure requirements.**

In CA, NY, UT, VA, GA, CT, IL, brokers must disclose:

- Total commission (dollar amount and percentage).
- Source of commission (funder-paid).
- Material conflicts of interest.

Non-disclosure can void contract in some states.

**Common confusions.**

First, "commission is always paid by merchant." False — funder-paid in standard MCA structure.

Second, "all funders pay same commission." False — meaningful variation.

Third, "renewal commissions match first-deal commissions." False — typically 50–70% of first-deal rate.

Fourth, "broker commission caps regulated." False — no commission cap in any state.

Fifth, "small brokers cannot negotiate." Limited but possible on specialty industries or geographies.

## Related terms

- [MCA funder volume discount rates (typical)](https://fundnode.co/llms/glossary/mca-funder-volume-discount-rates-typical) — Top-tier MCA brokers receive volume-based commission upgrades typically 50–200 bps above standard rates once submitting $500K+/month, with the largest brokers earning custom 12–15 point structures.
- [MCA funder marketing co-op program (detailed)](https://fundnode.co/llms/glossary/mca-funder-marketing-co-op-program-detailed) — MCA funder marketing co-op programs reimburse brokers $5K–$200K/year for funder-aligned marketing activities, typically requiring volume tier qualification, pre-approval of materials, and use-of-funds reporting.

## Authoritative sources

- [deBanked — Broker Compensation Survey 2026](https://debanked.com/)
- [Specialty Finance — ISO Economics Report](https://www.specialtyfinance.com/)

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