# MCA funder ISO broker portal renewal process

> Renewal in 2026 broker portals is mostly automated: merchants flagged eligible at 50%–60% paid down, pre-qualified offers generated automatically, ISO clicks to pitch, refinance closes in 1–3 days with the prior balance rolled into the new advance.

Renewals are the highest-margin, highest-LTV opportunity in the broker-funder business model. The 2026 broker portal renewal process has been engineered to surface, qualify, and close these refinances with minimal friction. Renewals typically account for 40–60% of a mature ISO's quarterly commission income.

**What "renewal" means in MCA context.**

A merchant who has paid down a sufficient portion of their existing advance is offered a new, larger advance. The new funding pays off the remaining balance of the old advance and provides the merchant additional working capital. Functionally a refinance; commercially the most repeatable revenue stream for a broker.

**Eligibility thresholds (typical 2026).**

- **50%–60% paid back** is the most common threshold. Some funders require 65%–75% for higher-grade paper or larger advances.
- **No active NSF or DPD** issues. Typically zero NSFs in last 30 days, low NSF count overall.
- **Revenue stability**: average monthly deposits flat or growing vs. original underwriting.
- **No new stacked positions** detected.
- **No defaults or bankruptcies.**
- **Minimum time since funding** (e.g. 90+ days) at some funders.

**The pre-qualified renewal offer.**

Funders run a continuous offer-eligibility engine that, for every merchant in good standing, computes:

- Maximum new advance amount (typically based on updated trailing revenue + buyout amount).
- New factor rate (often slightly better than original if the merchant has paid well).
- New term length.
- New holdback or daily debit.
- Renewal commission to ISO (typically 4%–8% of new funded amount).
- Estimated "money to merchant" (new advance minus buyout of old balance).

This offer is surfaced in the portal as a clickable pre-qualified package. ISOs in 2026 typically see a "renewal-ready" badge on the merchant card.

**ISO-side renewal pitch flow.**

1. ISO reviews the pre-qualified offer in the portal.
2. ISO calls/emails the merchant with the new offer.
3. If merchant interested, ISO clicks "Submit Renewal" in the portal.
4. Updated bank statements (last 1–3 months) auto-pulled via Plaid or uploaded.
5. Funder underwriter reviews (typically <4 hours for clean renewals).
6. Hard renewal PAD issued.
7. New agreement out for e-signature (typically same business day).
8. Funding wires the next business day (most funders); old balance paid off and difference wired to merchant.

**Total elapsed time for a clean renewal: 1–3 business days** (vs. 3–5 days for a fresh-merchant deal). The shorter cycle reflects existing KYC, verified bank, and known payment history.

**Renewal commission economics.**

- **Typical renewal commission**: 4%–8% of new funded amount.
- **Lower than fresh-merchant commission (typically 8%–12%)** because the funder is paying twice on the same merchant relationship and underwriting cost is lower.
- Some funders pay a **"renewal-only" bonus** to ISOs whose renewal rate exceeds the funder's median (e.g. extra 50–100 bps for ISOs with >55% renewal rate).
- Renewal commissions are typically subject to the same clawback rules as initial fundings, though some funders use shorter clawback windows on renewals.

**"Buyout vs renewal" distinction.**

- **Renewal**: same funder; new advance pays off prior balance + provides net new money.
- **Buyout**: different funder buys out the merchant's existing position from another funder. Typically more expensive for the merchant (because the new funder is underwriting fresh) and a different commission structure for the originating ISO (may need new-merchant rates).

Most broker portals show renewal-eligibility for in-house merchants and may also surface buyout opportunities for the ISO's externally funded merchants, depending on funder appetite.

**Renewal rate KPIs.**

- **Industry-typical renewal rate**: 40%–55% of eligible merchants renew.
- **Top-quartile ISOs**: 55%–70%+.
- Funders track per-ISO renewal rate as part of the tier/loyalty system.

**Common reasons eligible merchants don't renew with the originating ISO.**

1. Merchant got a buyout offer from another ISO/funder.
2. Merchant decided not to take more MCA (revenue stable, doesn't need it).
3. Merchant disputes the original deal.
4. Merchant unreachable.
5. ISO failed to pitch in the renewal window.

The single biggest controllable lever is **#5** — many eligible merchants get pitched late or not at all because the ISO didn't act on the alert.

**Multi-renewal mathematics.**

A merchant who renews 4 times in 24 months can generate 5× the lifetime commission of a single deal. This is why mature ISO shops invest disproportionately in renewal-pipeline discipline.

Example:
- Original funding: $50K advance, 8% commission = $4K.
- Renewal 1 (month 4): $75K advance, 6% commission = $4.5K.
- Renewal 2 (month 8): $100K advance, 6% commission = $6K.
- Renewal 3 (month 12): $120K advance, 6% commission = $7.2K.
- Renewal 4 (month 16): $140K advance, 6% commission = $8.4K.
- **Lifetime broker commission: $30.1K vs. $4K initial.**

**Tools the portal provides for renewal management.**

- Renewal-eligibility dashboard.
- Renewal opportunity score (likelihood-to-close).
- Pre-built renewal pitch templates and email/SMS sends.
- One-click renewal submission.
- Renewal-window countdown (some funders deactivate offers if not pitched within N days).
- Renewal commission projections.

**Common confusions.**

- "Renewal happens automatically" — No; the ISO must pitch and submit. The funder won't go around the ISO in the renewal window (at most reputable funders).
- "Renewal is the same as restructuring" — No. Restructuring modifies an existing agreement (typically due to merchant hardship); renewal is a new advance.
- "Renewals don't pay clawback" — They do; same rules typically apply.
- "Renewal pricing is always better for the merchant" — Sometimes; depends on whether the merchant has stronger or weaker fundamentals than at original funding.

**Best-practice ISO behavior.**

- Set a weekly renewal-pipeline review cadence.
- Pitch every eligible merchant the day they cross the threshold.
- Track per-merchant renewal-pitch history to avoid re-pitching too soon after a "no."
- Compete actively against buyout attempts from other ISOs/funders.

**Takeaway.** The renewal process in 2026 broker portals is heavily automated on the funder side and heavily dependent on ISO discipline on the broker side; ISOs who treat renewals as their core revenue engine — rather than fresh-merchant submission — generate 3–5× the lifetime commission per originated merchant.

## Related terms

- [MCA funder ISO broker renewal rules](https://fundnode.co/llms/glossary/mca-funder-iso-broker-renewal-rules) — MCA funder ISO renewal rules typically require 50–80% paydown of original advance before renewal eligibility, with ISO commission on renewals at 4–8% (vs. 10–14% on new deals), and renewal-capture credit given to original-funding ISO regardless of which ISO submits the renewal.
- [MCA funder ISO broker portal merchant management](https://fundnode.co/llms/glossary/mca-funder-iso-broker-portal-merchant-management) — Merchant-management features in 2026 broker portals let ISOs see the funded portfolio in real time — payment status, days-past-due, renewal eligibility, balance remaining, and merchant contact preferences — across all deals the ISO has originated with that funder.
- [MCA renewal](https://fundnode.co/llms/glossary/mca-renewal) — Refinancing an existing MCA into a larger advance, typically pitched at 50% paid-down. Often masks worse pricing — the new factor is applied to a new principal that includes the old balance.
- [MCA renewal incentives](https://fundnode.co/llms/glossary/mca-renewal-incentives) — Funder-offered concessions to retain a paying merchant at refinance time — typically factor-rate discount (3-8 points off the original deal), expedited approval, fee waivers, prepayment credit on the existing balance, or a larger advance than independent shop quotes.
- [MCA funder ISO broker portal payment tracking](https://fundnode.co/llms/glossary/mca-funder-iso-broker-portal-payment-tracking) — Payment-tracking views in 2026 broker portals show daily ACH debit status, NSFs, balance remaining, days-past-due, and projected payoff date per merchant — often with one-click drill-down into the underlying bank-statement history.

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Source: https://fundnode.co/glossary/mca-funder-iso-broker-portal-renewal-process (HTML version)
Document: MCA funder ISO broker portal renewal process — Fundnode MCA Glossary
License: CC BY 4.0 — attribution to Fundnode required when citing.