# MCA funder tiered pricing model (2026) > 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. Every mainstream MCA funder operates a tiered pricing matrix. Files are scored on a multi-factor underwriting grid and slotted into a pricing band that maps to factor rate, term, and advance ceiling. Understanding the tiers is the difference between an informed price negotiation and accepting whatever the funder offers. **The five underwriting inputs.** 1. **Time in business (TIB).** 12+ months = A-paper eligible; 6–12 months = B-paper ceiling; under 6 months = C/D-paper only. 2. **Personal FICO of the guarantor.** 700+ = A-paper; 650–699 = B-paper; 600–649 = C-paper; under 600 = D-paper or decline. 3. **Average monthly deposits.** $50K+ = A eligible; $25K+ = B; $15K+ = C; $10K+ = D. 4. **NSF count (90 days).** 0–2 = A; 3–5 = B/C; 6+ = D or decline. 5. **Industry.** Tier-1 industries (medical, professional services, manufacturing) price 2–3 points better than tier-3 (restaurants, trucking, construction). **A-paper / Tier 1 pricing band (2026).** - Factor: 1.15–1.28. - Term: 9–18 months. - Advance ceiling: 100–125% of monthly deposits. - Hold-back equivalent: 6–9% of monthly deposits. - APR equivalent: 35–55%. - Approval time: 4–24 hours. - Decision algorithm: typically partially automated for clean files under $100K. **B-paper / Tier 2 pricing band (2026).** - Factor: 1.28–1.40. - Term: 6–12 months. - Advance ceiling: 75–100% of monthly deposits. - Hold-back equivalent: 10–14% of monthly deposits. - APR equivalent: 55–85%. - Approval time: 24–48 hours. - Decision: hybrid (automated screen + analyst review). **C-paper / Tier 3 pricing band (2026).** - Factor: 1.40–1.49. - Term: 4–9 months. - Advance ceiling: 50–75% of monthly deposits. - Hold-back equivalent: 14–18% of monthly deposits. - APR equivalent: 85–130%. - Approval time: 24–72 hours. - Decision: full analyst review; stips heavy. **D-paper / Tier 4 pricing band (2026).** - Factor: 1.49–1.60+. - Term: 3–6 months. - Advance ceiling: 25–50% of monthly deposits. - Hold-back equivalent: 18–25%+. - APR equivalent: 130%+. - Approval time: 48–96 hours. - Decision: extensive analyst review; often requires second-position position guard rails. **How the tiering flows.** Underwriter pulls bank statements, runs them through an automated scorer (Heron, MCA Track, or funder-proprietary), gets a paper grade, then layers in industry + state + position adjustments. Final tier may shift one band up or down from the algorithmic output based on analyst judgment. **Industry adjustments.** - **Trucking:** typically −1 tier (B-paper merchant prices at C-paper factor). - **Restaurants:** −0.5 tier on average. - **Construction:** −1 tier. - **Medical, dental, legal, accounting:** +0.5 tier (priced better than headline). - **Auto repair, beauty salons:** flat. **Position adjustments.** - First-position MCA: standard tier. - Second-position: typically −1 tier (factor +5–8 points). - Third-position: most funders decline; if approved, D-paper pricing minimum. **Common confusion.** First, "I have an 800 FICO so I'm A-paper." False — TIB and deposits matter more in MCA than personal credit. Second, "tiers are negotiable." Partially — within a band, yes; across bands, almost never. Third, "all funders use the same tiers." False — labels vary (some use 1–5, some use A–E, some use platinum/gold/silver), but ranges overlap heavily. Fourth, "broker can move me up a tier." Broker can present the file better but cannot override underwriting. Fifth, "Toast/Square use the same tiering." Mostly false — processor-funded MCAs use processor data exclusively and have their own scoring. ## 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. - [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 credit tier paper grades — detailed (2026)](https://fundnode.co/llms/glossary/mca-funder-credit-tier-paper-grades-detailed) — 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. - [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. - [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 — MCA Underwriting Standards](https://www.herondata.io/) --- Source: https://fundnode.co/glossary/mca-funder-tiered-pricing-model (HTML version) Document: MCA funder tiered pricing model (2026) — Fundnode MCA Glossary License: CC BY 4.0 — attribution to Fundnode required when citing.