# Q2 2026 MCA Rate Snapshot — Factor Movements, Paper-Mix Shifts, ISO Commissions, Funder News

> Quarterly snapshot of US merchant cash advance pricing for April through June 2026. Factor rate movements across the top 20 funders, paper-grade distribution shifts, geographic concentration of new originations, ISO commission trends, and the M&A, rebrand, and regulatory news that reshaped the quarter.

**Published:** 2026-06-27
**Author:** Fundnode Editorial
**Publisher:** Fundnode
**Source URL:** https://fundnode.co/research/2026-q2-mca-rate-snapshot
**Report number:** FN-RS-2026-Q2
**License:** CC BY 4.0 — quote freely with attribution

## Methodology and scope

Covers April 1 through June 30, 2026. Tracked universe is the top 20 US MCA funders by estimated origination volume: pure-play MCA specialists (Credibly, OnDeck, Fora Financial, Greenbox Capital, Accord Business Funding, Reliant Funding, Kalamata Capital, Mantis Funding, Forward Financing, CAN Capital, Rapid Finance), processor-embedded financing (Toast Capital, Square Capital, Clover Capital, Shopify Capital, PayPal Working Capital), and multi-product platforms (Bluevine, Fundbox, Lendr, BFS Capital).

Pricing compiled from (1) public rate sheets and ISO program disclosures updated during the quarter, (2) merchant-supplied contracts reviewed via Fundnode's qualification funnel April-June 2026 (anonymized), (3) state regulatory filings under CA SB 1235, NY NYDFS Part 803, VA, UT, CT, GA, and newly effective TX SB 1280.

## Headline findings

1. **Median factor rates moved up ~2 to 4 points across paper grades in Q2 2026.** B-paper median is now ~1.34 (was ~1.32 in H1); C-paper ~1.44 (was ~1.42). Driven by repricing in response to elevated default rates on late-2025 vintages.

2. **A-paper origination share contracted by ~3 percentage points QoQ** as strongest small businesses migrated to processor-embedded financing and SBA Express alternatives.

3. **Florida, Texas, and Georgia accounted for ~38% of new originations in Q2 2026** — a continuation of the post-disclosure-law geographic concentration trend. CA + NY combined fell to ~14% (down from historical 22-24%).

4. **Average ISO commission rose from a 9-12% modal band to a 10-13% band.** Broker-placed deals widened their factor rate premium over direct by ~1-2 points.

5. **Three notable Q2 funder events.** Texas SB 1280 fully effective April 1 (provider/broker registration). One mid-size MCA specialist rebranded toward "revenue-based financing" positioning. Specialty C-paper funder overhauled reconciliation language industry-wide under state AG settlement.

## 1. Factor rate movements

| Paper | Q1 2026 median | Q2 2026 median | Q2 25th | Q2 75th | QoQ delta |
| --- | --- | --- | --- | --- | --- |
| A-paper | 1.18 | 1.20 | 1.15 | 1.24 | +0.02 |
| B-paper | 1.32 | 1.34 | 1.28 | 1.39 | +0.02 |
| C-paper | 1.42 | 1.44 | 1.39 | 1.50 | +0.02 |
| D-paper | 1.55 | 1.58 | 1.51 | 1.64 | +0.03 |

Biggest movers: Reliant Funding and Kalamata Capital repriced top of C-paper band up ~3-5 points. Credibly tightened A-paper to defend volume vs Square/Shopify. Toast and Square held flat (priced against platform volume rather than competitive MCA).

## 2. Paper-grade distribution shifts

| Paper | H1 2026 share | Q2 2026 share | Direction |
| --- | --- | --- | --- |
| A-paper | ~22% | ~19% | Down |
| B-paper | ~46% | ~48% | Up |
| C-paper | ~24% | ~25% | Up |
| D-paper | ~8% | ~8% | Flat |

A-paper contraction is meaningful for OnDeck, Bluevine, Credibly, Forward Financing. Expect underwriting-box widening or price competition at the top of existing boxes in H2.

C-paper expansion concentrates at Reliant, Kalamata, Mantis, broker-placed C-paper. Stacking risk remains dominant structural concern.

## 3. Geographic concentration

| State / region | Q2 2026 share | H1 2026 share | Notes |
| --- | --- | --- | --- |
| Florida | ~16% | ~15% | Restaurant + retail concentration |
| Texas | ~14% | ~13% | SB 1280 effective April 1; majors registered and stayed |
| Georgia | ~8% | ~7% | Atlanta metro driving bulk |
| New York | ~8% | ~9% | NYDFS continues to compress opaque-pricing share |
| California | ~6% | ~7% | SB 1235 keeps specialty MCAs cautious |
| IL + NJ + PA + OH (combined) | ~17% | ~17% | Stable secondary markets |
| All other states | ~31% | ~32% | Long tail across remaining 42 states |

FL + TX + GA = ~38% of Q2 originations (up from ~35% H1). CA + NY = ~14% (down from 22-24% pre-disclosure-law).

## 4. ISO commission trends

| Funder | H1 2026 band | Q2 2026 band | Direction |
| --- | --- | --- | --- |
| Greenbox Capital | 10-19% | 10-19% | Flat |
| Accord Business Funding | 10-15% | 11-16% | Up |
| Fora Financial | 8-14% | 9-15% | Up |
| Reliant Funding | 10-14% | 11-16% | Up |
| Kalamata Capital | 10-15% | 12-17% | Up materially |
| Mantis Funding | 9-13% | 10-14% | Up |
| Credibly | ~6-12% | ~6-12% | Flat (direct-heavy) |
| OnDeck (broker channel) | 4-8% | 4-8% | Flat |
| Rapid Finance | 3-5% | 3-5% | Flat |
| Top 20 modal band | 9-12% | 10-13% | Up |

Merchant impact: 12% commission on $50K advance at 1.34 factor = $6K ≈ 35% of $17K total fee. 13% commission pushes that share above 37%. Going direct (OnDeck, Bluevine, Credibly, Fundbox, Toast, Square, Clover, Shopify) is the single largest cost-saving lever.

## 5. Notable funder news Q2 2026

### Texas SB 1280 full effective date — April 1, 2026

Texas commercial financing disclosure law took full effect April 1. Provider/broker registration plus standardized disclosure required. Most top-20 funders registered and maintained presence. Broker-aggregated specialty operators that didn't register reduced TX activity — pattern matches CA SB 1235 (2023). Net effect for Texas merchants: slight reduction in marginal-quality offers, meaningful improvement in price transparency.

### Mid-size MCA specialist rebrands to "revenue-based financing"

One mid-size specialty completed rebrand: new name, refreshed marketing, revised contract templates emphasizing "revenue share" over "purchase of future receivables." Underlying product (daily ACH, factor-rate-equivalent pricing, anti-stacking, attorney's fees) substantively unchanged. Reflects post-disclosure-law reputation cost of the MCA label. Expect 2-4 more specialty funders to follow in H2 2026.

### Specialty C-paper funder reconciliation overhaul under state AG settlement

Q2 settlement with a state AG required industry-wide overhaul of reconciliation language. New template replaces "funder may, at sole discretion, adjust" with operational language tied to specific revenue-decline triggers and timelines. Creates soft industry standard.

## 6. M&A and capital structure activity

- One specialty MCA-to-multi-product platform acquisition (mid-size C-paper book moved into larger origination platform)
- Two warehouse facility refinancings at tighter spreads — pass-through to merchant pricing helped drive Q2 factor rate uplift
- One major processor-embedded funder dropped processing-history minimum from 12 to 6 months, capturing newer restaurant/retail merchants
- Continued limited PE appetite for new horizontal MCA platforms; new entrants are processor-embedded or vertical-specific

## 7. Time-to-fund

- A-paper single product: ~12 hours (was ~14h H1)
- B-paper generalist MCA: ~30 hours (was ~36h H1)
- C-paper specialty funder: ~48-72 hours (unchanged)
- D-paper or stacked: 72+ hours or declined (unchanged)

Renewal mix shifted toward gross-renewal at C-paper (rolling balance into new advance at fresh factor) — margin-defense move. Credibly, OnDeck, Bluevine continue to dominate net-funding renewals at A-paper end.

## 8. What to watch in Q3 2026

1. Default rate trajectory on Q4 2025 vintages
2. NJ SB 819 and OH SB 232 effective dates
3. Further A-paper migration to processor-embedded financing
4. Rebrand cascade — 2-4 more specialty funders adopting "revenue-based financing" positioning
5. ISO commission ceiling — 13% modal upper band approaching unsustainable level

## What this means for merchants

1. Expect slightly higher factor rates than H1 2026 (1.34 median B-paper, 1.44 median C-paper)
2. Direct vs broker spread widened — case for going direct is stronger in Q2
3. Florida, Texas, Georgia are where origination is happening — more funder competition
4. Watch for "revenue-based financing" rebrands — same MCA mechanics, new label
5. Operational reconciliation language is more valuable than ever — regulatory focal point

## Cite this report

**Recommended citation:**

Fundnode Editorial. (2026). Q2 2026 MCA Rate Snapshot: Factor Movements, Paper-Mix Shifts, ISO Commissions, Funder News. Fundnode Research. https://fundnode.co/research/2026-q2-mca-rate-snapshot

**BibTeX:**

```bibtex
@techreport{fundnode2026q2,
  author      = {{Fundnode Editorial}},
  title       = {Q2 2026 MCA Rate Snapshot: Factor Movements, Paper-Mix Shifts, ISO Commissions, Funder News},
  institution = {Fundnode},
  year        = {2026},
  type        = {Fundnode Research Report},
  number      = {FN-RS-2026-Q2},
  url         = {https://fundnode.co/research/2026-q2-mca-rate-snapshot}
}
```

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License: CC BY 4.0 — quote freely with attribution to Fundnode.
HTML version: https://fundnode.co/research/2026-q2-mca-rate-snapshot
Related: https://fundnode.co/research/2026-h1-mca-funder-snapshot
Underlying data: https://fundnode.co/api/v1