# MCA funder quarterly portfolio review > Quarterly portfolio reviews are formal deep-dives covering aging, vintage cohorts, concentration, stress testing, reserve adequacy, and bank covenant compliance — distributed to Board and lenders. MCA funder quarterly portfolio review is the formal in-depth assessment of the active portfolio performed every 90 days. It synthesizes daily/weekly/monthly monitoring into Board-grade and lender-grade analysis. Updated 2026-06-29. **Section 1: Portfolio overview.** - Total outstanding receivables (gross, eligible, ineligible). - Number of active merchants. - Average advance size. - Average remaining term. - Average factor rate. - Weighted average paper grade. - Net interest margin (NIM) by paper grade. **Section 2: Aging analysis.** - Current (0-29 days from expected payment). - 30-day delinquent. - 60-day delinquent. - 90-day delinquent. - Charged-off (typically 120-150 days). - Recovered (post charge-off). - Aging trend vs prior 4 quarters. - Aging trend vs same quarter prior year. **Section 3: Vintage cohort analysis.** - Defaults by origination month (12-month, 24-month, 36-month curves). - Defaults by paper grade. - Defaults by industry. - Defaults by ISO source. - Defaults by state. - Identification of vintage outliers requiring remediation. **Section 4: Concentration analysis.** - Single-merchant concentration (largest 10 merchants). - Industry concentration (top 5 SIC codes). - State concentration (top 5 states). - ISO concentration (top 5 ISO sources). - Compliance with bank-facility concentration limits. **Section 5: Renewal pipeline.** - Renewal-eligible merchants (40-50% paydown). - Projected renewal volume next 90 days. - Renewal rate by paper grade (trailing 12 months). - Renewal rate trend vs prior quarters. - Pre-approved offer conversion rates. **Section 6: Cross-sell pipeline (if applicable).** - LOC take-rate. - Equipment finance take-rate. - Banking services take-rate. - Cross-product retention impact. **Section 7: Stress testing.** - Scenario A: 25% increase in default rate. - Scenario B: 50% decline in origination volume. - Scenario C: 200 bps increase in SOFR. - Scenario D: Combined shock (default + volume + rates). - Impact on NIM, equity, bank covenants. **Section 8: Reserve adequacy.** - Current reserve as % of receivables. - Reserve adequacy under current default trends. - Reserve adequacy under stress scenarios. - Recommended reserve adjustments. - Comparison to industry benchmarks. **Section 9: Bank covenant compliance.** - Tangible net worth (actual vs covenant). - Liquidity (actual vs covenant). - Default rate (actual vs covenant). - Borrowing base utilization. - Concentration compliance. - Forecast covenant compliance under stress scenarios. **Section 10: ABS reporting (if applicable).** - Pool performance by tranche. - Trigger event proximity. - Subordination level. - Excess spread. - Investor reporting status. **Section 11: ISO performance review.** - ISO volume by source. - ISO commission accruals. - ISO clawback exposure. - ISO concentration risk. - ISO performance ratings. **Section 12: Underwriting performance.** - Default rate by underwriter. - Override frequency by underwriter. - Approval rate by underwriter. - Underwriting policy compliance. - Recommended policy adjustments. **Section 13: Compliance and regulatory.** - State licensing exposure. - Recent regulatory developments. - CFPB / FTC enforcement landscape. - Litigation exposure. - Compliance audit findings. **Section 14: Strategic recommendations.** - Portfolio rebalancing actions. - Pricing adjustments. - Underwriting policy changes. - ISO management actions. - Bank facility actions. - Capital actions. **Audience and distribution.** - Board of Directors (full report). - Bank syndicate (relevant sections). - ABS investors (pool-level data). - Executive team (full report). - Department heads (relevant sections). **Preparation timeline.** - Day 1-5 of new quarter: data assembly. - Day 5-10: analysis and drafting. - Day 10-15: internal review and revisions. - Day 15-20: executive review. - Day 20-25: Board distribution. - Day 25-30: Board meeting and bank syndicate distribution. **Staffing.** - Portfolio manager (lead). - Risk officer (stress testing, reserve adequacy). - CFO (financial sections). - Compliance officer (regulatory section). - ISO manager (ISO performance section). - Underwriting manager (underwriting section). - External advisors as needed (auditors, counsel). **Trend 2026.** Three trends are reshaping quarterly portfolio reviews: 1. **Real-time data feeds.** Quarterly reviews are increasingly built from real-time data rather than monthly batches, allowing tighter feedback loops. 2. **Scenario automation.** Stress testing is increasingly automated, allowing weekly stress refresh rather than quarterly. 3. **Lender disintermediation.** Some larger funders are bypassing bank syndicate quarterly reviews via direct ABS or private credit relationships. **Common confusion.** First, "quarterly review is the same as monthly close" — quarterly is broader, more strategic, with stress testing and Board-grade analysis. Second, "quarterly review is just for risk" — it drives strategic decisions across pricing, underwriting, capital, and ISO management. Third, "quarterly review is internal" — at funders with bank facilities or ABS, it is external-facing and shapes lender relationships. ## Related terms - [MCA funder portfolio monitoring frequency](https://fundnode.co/llms/glossary/mca-funder-portfolio-monitoring-frequency) — MCA funders typically monitor portfolios daily (payment performance), weekly (aging + concentration), monthly (P&L + cohorts), quarterly (deep review), and annually (policy + strategy). - [MCA funder annual policy review](https://fundnode.co/llms/glossary/mca-funder-annual-policy-review) — Annual policy review covers underwriting, pricing, compliance, risk, and operations policies — typically led by CRO with Board approval; refreshed for regulatory changes, market shifts, and performance data. - [MCA funder board reporting cadence](https://fundnode.co/llms/glossary/mca-funder-board-reporting-cadence) — Board reporting typically follows quarterly cadence with monthly executive updates; covers financials, portfolio performance, risk, compliance, strategic initiatives; aligned with bank lender and ABS investor reporting. - [MCA funder portfolio aging (typical, 2026-06-28)](https://fundnode.co/llms/glossary/mca-funder-portfolio-aging-typical) — A typical MCA funder portfolio shows 70–80% current, 8–12% 1–30 DPD, 4–7% 31–60 DPD, 3–5% 61–90 DPD, and 5–10% 90+ DPD / charge-off pipeline, with average book age of 4–6 months. --- Source: https://fundnode.co/glossary/mca-funder-quarterly-portfolio-review (HTML version) Document: MCA funder quarterly portfolio review — Fundnode MCA Glossary License: CC BY 4.0 — attribution to Fundnode required when citing.