# MCA portfolio manager roles

> An MCA portfolio manager oversees the funded book of an MCA company: monitoring performance, managing reconciliation requests, deciding renewals, and triaging defaults. Larger funders split the role across credit, collections, and renewals teams.

Inside a mid-to-large MCA funder, the portfolio manager (PM) function bridges underwriting and collections — owning the funded book and the merchant relationship from Day 1 of funding through final payment or default.

**Core responsibilities.**

1. **Performance monitoring.** Daily reporting on collections vs. expected, NSF rates, reconciliation requests, balance drawdowns.
2. **Reconciliation processing.** Reviewing merchant requests to reduce daily payments based on revenue drop. Approving / denying / modifying within funder-set guidelines.
3. **Renewal underwriting.** When merchant is 50%+ paid down, deciding whether to offer a renewal advance, what amount, what factor rate, and what terms.
4. **Default triage.** When a merchant stops paying or stacks additional advances against the funder's authorization, deciding whether to (a) negotiate workout, (b) accelerate the contract, (c) refer to outside counsel for COJ / lawsuit, or (d) sell to a distressed buyer.
5. **Merchant communication.** Direct contact with merchants who request modifications, have questions, or are in distress. The merchant-facing voice of the funder post-funding.

**Team structure at a typical $100M+ funder.**

- **VP Portfolio.** Owns overall portfolio health, reports to CEO / CFO. Sets reconciliation and default policies.
- **Senior PMs (2–5).** Each owns a book of $20M–$50M outstanding. Make individual case decisions.
- **Junior PMs / Account Managers (5–15).** Day-to-day merchant communication, reconciliation intake, renewal pitches.
- **Collections specialists (3–10).** Handle 30+ day delinquencies, NSF follow-up, payment plan negotiation.
- **Default / workout team (1–3).** Take over 60+ day delinquencies, manage litigation referrals, COJ filings, settlements.

**At smaller funders (under $25M outstanding),** all these functions collapse into 1–3 people who do everything.

**Performance metrics PMs are judged on.**

- **Collection rate** (actual collections / expected collections per period).
- **Reconciliation rate** (% of book in active reconciliation).
- **Renewal rate** (% of paid-off merchants who renew with the funder).
- **Default rate** (% of book that defaults vs. underwriting assumption).
- **Recovery rate** (cents on dollar recovered post-default).

**Compensation structure.**

Base salary $65K–$120K depending on level + bonus tied to portfolio metrics. Senior PMs at larger funders can earn $150K–$300K with bonus. Renewal-focused PMs may also get commission on renewal volume (2–4% of renewal advance).

**Tools used.**

- **CRM.** Salesforce, HubSpot, or specialty MCA CRMs (Centrex, OnyxIQ, LendSaaS).
- **Bank monitoring.** Decision Logic, Plaid, MX for daily account monitoring.
- **Collections software.** Specialty MCA collections platforms.
- **Internal dashboards.** Custom BI on portfolio performance.

**Reconciliation philosophy varies sharply by funder.**

- **Merchant-friendly funders.** OnDeck, Forward Financing, Credibly have published reconciliation policies, respond in 5–10 days, often approve.
- **Aggressive funders.** Some smaller shops resist reconciliation, require certified-mail demand, or deny if revenue drop is below 30%.
- **Predatory funders.** A handful refuse reconciliation entirely and rely on COJ language to enforce full payment — these are increasingly being sued by state AGs and the FTC.

**Common confusion.** First, the PM is NOT the underwriter — different team, different decision authority. Second, the PM is NOT collections — collections is post-default; PM is pre-default relationship management. Third, the PM does NOT usually have authority to settle for less than full balance — that escalates to VP or workout team.

## Related terms

- [Reconciliation (MCA)](https://fundnode.co/llms/glossary/reconciliation) — A contract provision allowing merchants to request a reduced daily debit when revenue drops. Required for MCAs to remain legally a 'sale,' not a 'loan' in most states.
- [MCA renewal relationship discount](https://fundnode.co/llms/glossary/mca-renewal-relationship-discount) — A factor-rate reduction that funders offer existing merchants at renewal as a customer-retention incentive; typical discount is 0.02–0.08 off the factor (e.g., 1.32 → 1.27), worth $2K–$8K on a $100K advance, but rarely volunteered — merchants must ask and threaten to leave.
- [MCA default](https://fundnode.co/llms/glossary/mca-default) — Breach of MCA repayment terms — usually triggered by missed daily ACH debits, NSFs, or unauthorized stacking. Consequences range from increased collection pressure to UCC enforcement and personal-guarantee pursuit.
- [MCA funder due diligence](https://fundnode.co/llms/glossary/mca-funder-due-diligence) — The merchant-side process of evaluating an MCA funder before signing — covering funder identity, regulatory status, capital backing, complaint history, default-enforcement reputation, and contract terms (COJ, reconciliation, prepayment, broker fees) — to surface predatory practices before they bind.

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Source: https://fundnode.co/glossary/mca-portfolio-manager-roles (HTML version)
Document: MCA portfolio manager roles — Fundnode MCA Glossary
License: CC BY 4.0 — attribution to Fundnode required when citing.