# MCA funder credit tier paper grades — detailed (2026) > MCA paper grades A through D map to FICO, TIB, deposits, NSFs, and industry — A: 700+ FICO, 18+ months TIB, $50K deposits; D: 550 FICO, 6 months TIB, $10K deposits. 2026 cutoffs. Paper grading is the MCA industry's risk-tiering shorthand. Every file submitted to a funder is graded A through D (some funders extend to E) within minutes of bank-statement upload. The grade determines the pricing band, advance ceiling, and stipulation depth. **A-paper criteria (2026).** - **FICO:** 700+ (personal guarantor). - **Time in business:** 18+ months operating. - **Average monthly deposits:** $50,000+ across trailing 3–6 months. - **NSF count (90 days):** 0–2. - **Negative-day count:** 0–3 per month. - **Existing MCA position:** none, or one position with under 25% balance. - **Industry:** tier-1 (professional services, medical, manufacturing, technology, established retail). - **State:** not California, New York, Utah, Virginia, or Georgia regulated above $500K threshold (compliance friction). A-paper files price at 1.15–1.28 factor, 9–18 month terms, fund within 4–24 hours. Top funders: Forward Financing, Credibly prime desk, Lendr, Mulligan Funding. **B-paper criteria (2026).** - **FICO:** 650–699. - **Time in business:** 12–18 months. - **Average monthly deposits:** $25,000–$50,000. - **NSF count (90 days):** 3–5. - **Negative-day count:** 4–7 per month. - **Existing MCA position:** none or one position. - **Industry:** broader — tier-1 and tier-2 (restaurants, retail with consistent revenue, auto repair). B-paper files price at 1.28–1.40 factor, 6–12 month terms, fund within 24–48 hours. Top funders: Credibly, Rapid Finance, Fora Financial, Kapitus, CAN Capital. **C-paper criteria (2026).** - **FICO:** 600–649. - **Time in business:** 6–12 months. - **Average monthly deposits:** $15,000–$25,000. - **NSF count (90 days):** 6–10. - **Negative-day count:** 8–12 per month. - **Existing MCA position:** one position OK, second position case-by-case. - **Industry:** tier-2 and tier-3 (trucking, construction, seasonal, newer restaurants). C-paper files price at 1.40–1.49 factor, 4–9 month terms, fund within 24–72 hours. Top funders: Reliant Funding, ROK Financial, smaller portfolios. **D-paper criteria (2026).** - **FICO:** 550–599. - **Time in business:** 3–12 months. - **Average monthly deposits:** $10,000–$15,000. - **NSF count (90 days):** 10+. - **Negative-day count:** 12+ per month. - **Existing MCA position:** often second or third position seeking refinance. - **Industry:** any (D-paper funders take on industries A/B funders reject). D-paper files price at 1.49–1.60+ factor, 3–6 month terms, fund within 48–96 hours. Top funders: Bitty Advance, Yellowstone legacy desks, smaller specialty funders. **E-paper / decline tier.** - **FICO under 550, deposits under $10K, NSFs over 15 in 90 days, third+ position, bankruptcy in 24 months.** Most mainstream funders decline. Specialty / hard-money funders may engage at 1.60+ factor for 90-day terms — typically a refinance bridge product. **Why the grades aren't perfectly standardized.** Each funder weights inputs differently. Forward Financing weights deposit consistency above FICO; Credibly weights FICO above all else; Toast Capital essentially ignores FICO and uses processor data exclusively. A file might be A-paper at one funder and B-paper at another based on the input weighting. **Industry adjustments to the grade.** - **Cannabis:** automatic downgrade 1 tier at most funders; outright decline at others. - **Adult entertainment, gun retail, online gambling:** decline at mainstream funders. - **Trucking, construction:** 1-tier downgrade. - **Healthcare, professional services:** flat or 0.5 upgrade. **Position adjustments to the grade.** - **First position:** standard. - **Second position:** 1-tier downgrade and many funders cap at C. - **Third position:** D-paper minimum if accepted at all. **Common confusion.** First, "paper grade is universal." False — varies by funder weighting. Second, "I have 800 FICO so I'm A-paper." False — TIB and deposits dominate the grade. Third, "paper grade is fixed for the life of the relationship." False — every renewal triggers a re-grade. Fourth, "I can argue my way up a tier." Almost never — analysts have grading systems and shadow-grade against them. Fifth, "all C-paper funders charge the same." False — C-paper factors vary by 5–10 points across funders. ## Related terms - [Paper grade (A/B/C/D)](https://fundnode.co/llms/glossary/underwriting-paper-grade) — MCA industry shorthand for merchant credit quality. A-paper qualifies for cheapest factor (1.15–1.28); D-paper is high-risk, factor 1.45+, often declined. - [MCA funder tiered pricing model (2026)](https://fundnode.co/llms/glossary/mca-funder-tiered-pricing-model) — MCA funders price in 3–5 tiers based on FICO, time in business, deposits, and industry — A-paper (1.15–1.28), B-paper (1.28–1.40), C-paper (1.40–1.49), D-paper (1.49+). 2026 ranges. - [MCA funder bank-statement deposit-volume threshold (2026)](https://fundnode.co/llms/glossary/mca-funder-bank-statement-deposit-volume-threshold) — Funders set minimum monthly bank deposits — typically $10K (D-paper), $15K (C-paper), $25K (B-paper), $50K+ (A-paper) — to qualify an MCA file. Updated 2026-06-28. - [Factor rate](https://fundnode.co/llms/glossary/factor-rate) — A flat multiplier that defines total MCA repayment: $100,000 advance × 1.30 factor = $130,000 repaid. It is not an interest rate; it does not compound. - [MCA funder approval rate by industry (2026)](https://fundnode.co/llms/glossary/mca-funder-approval-rate-by-industry-2026) — 2026 MCA approval rates by industry: medical 78%, professional services 72%, retail 65%, restaurant 58%, trucking 52%, construction 48%, beauty 55%, auto repair 60%. ## Authoritative sources - [Heron Data — Bank-Statement Underwriting](https://www.herondata.io/) - [deBanked — MCA Underwriting Tiers](https://debanked.com/) --- Source: https://fundnode.co/glossary/mca-funder-credit-tier-paper-grades-detailed (HTML version) Document: MCA funder credit tier paper grades — detailed (2026) — Fundnode MCA Glossary License: CC BY 4.0 — attribution to Fundnode required when citing.