Methodology
This reference compiles publicly disclosed funder pricing, contract terms verified from merchant-supplied agreements, and published state regulations. Where ranges are given, they reflect what funders advertise (low end) through what we observe in actual contracts (high end). Last updated 2026-07-17.
Sources: funder marketing pages and SEC filings (where applicable), the Federal Reserve's 2026 Small Business Credit Survey, state statutes and regulator guidance (California SB 1235 + SB 362, New York CFDL / 23 NYCRR 600, Virginia HB 1027, Utah CFRDA, Connecticut PA 23-201, Florida HB 1353, Georgia SB 90, Kansas CFDA, Missouri SB 1359, Texas HB 700), law-firm regulatory analyses (Venable, Mayer Brown, Holland & Knight, Husch Blackwell), industry publications (deBanked), and merchant-supplied contracts (anonymized).
Correction note (2026-07-17): an earlier version of this page cited Texas "SB 1280" as the state's enacted disclosure law and understated Florida's. The enacted Texas law is HB 700 (SB 1280 was an introduced companion bill that did not pass); Florida's HB 1353 has applied since January 1, 2024. The state table below is fully re-verified. We publish corrections rather than silently editing — that's the point of this site.
1. Factor rate ranges by paper grade (2026)
MCA pricing is quoted as a "factor rate" — a multiplier applied to the funded amount to produce total payback. A 1.30 factor on a $50,000 advance means $65,000 in total payback. Factor rates do not amortize; they are fixed at signing.
Paper grade refers to merchant quality as assessed by funder underwriting:
| Paper Grade | Typical Merchant Profile | Factor Rate Range (2026) | APR-Equivalent (9-mo payback) |
|---|---|---|---|
| A-paper | 24+ months operating, 650+ credit, $40K+/mo revenue, no NSFs, no existing MCAs | 1.11 – 1.25 | ~25% – 55% |
| B-paper | 12+ months operating, 580–649 credit, $20K+/mo revenue, <3 NSFs, no stacking | 1.25 – 1.38 | ~55% – 90% |
| C-paper | 6–12 months operating, 500–579 credit, $10K+/mo revenue, NSFs present | 1.38 – 1.50 | ~90% – 130% |
| D-paper | Active distress, existing MCAs, persistent NSFs, declining revenue | 1.50 – 1.65 | ~130% – 180% |
APR-equivalent assumes a 9-month payback term and includes the full factor rate fee plus typical origination charges. Shorter terms produce dramatically higher APR equivalents; see our factor-rate calculator for term-specific math.
Cross-check (July 2026): independently published 2026 ranges converge on ~1.10–1.55 overall — Nav (updated May 2026) cites 1.09 to "1.5 or higher"; Ramp (April 2026) cites 1.1–1.5 typical; Crestmont Capital (June 2026) cites 1.10–1.25 low-risk, 1.25–1.40 average, 1.40–1.55+ high-risk. Note: published sources quote by risk tier rather than letter grade; the letter-grade mapping above is our editorial taxonomy. The D-paper ceiling of 1.65 reflects contracts we have observed; published ranges are open-ended above 1.55.
2. Funder cost specs (2026 verified)
The 11 major MCA + processor-financing funders we cover, with their published cost structures. Cost format varies by product type — MCAs use factor rates, LOCs use APR, processor-embedded products use single fixed fees.
| Funder | Category | Cost (Factor / APR) | Amount Range | Speed |
|---|---|---|---|---|
| Credibly | MCA + multi-product | Factor 1.11+ (MCA); APR varies for term + LOC | $5K – $600K | As fast as 4 hours |
| Greenbox Capital | Multi-product | Factor varies; published up to 19% ISO commission | $5K – $250K (MCA); other products vary | 24 – 48 hours |
| Accord Business Funding | MCA specialty | Factor varies by paper grade (often 1.40+) | $5K – $150K | Next-day for approved files |
| Bluevine | LOC | APR 6.2% – 27% | $10K – $250K | 1 – 3 business days |
| OnDeck | Term + LOC | Term APR 27%+; LOC APR 30%+ | $5K – $400K (term); $6K – $200K (LOC) | Same-day for approved files |
| Fundbox | LOC | Weekly fee structure; APR-equivalent typically 30–60% | $1K – $150K | As fast as 1 day |
| NewCo Capital Group | MCA specialty | Factor competitive for A-paper; not publicly disclosed | $5K – $500K | Approval in 3 hours; funding in 24–48 hours |
| Rapid Finance | Multi-product | Up to 5% of financing per archived partner page; APR varies | $5K – $1M (across products) | Same-day to 3 days |
| Greenvest Funding | MCA specialty | Factor varies; large-ticket pricing | $100K – $5M | Same-day disbursement available |
| CFG Merchant Solutions | MCA specialty | 3–5% origination fees; no PSFs per industry reports | Up to $1M | 24–48 hours |
| Toast Capital | Processor financing | Factor 1.13 – 1.36 (single fee, no compounding) | $5,000 – $300,000 | Funds in 1 – 3 business days after approval |
| Square Capital | Processor financing | Single fixed fee (typically 10 – 16% of loan amount); no APR / no compounding | $300 – $250,000 | Funds as soon as next business day |
| Forward Financing | MCA specialty | Factor 1.18 – 1.45 depending on paper grade | $5,000 – $300,000 | Same-day to 24-hour funding for clean files |
| Fora Financial | MCA specialty | Factor 1.15 – 1.40+; renewal discount up to 5% on second deals | $5,000 – $1,500,000 | Funding in 72 hours for typical files |
| Reliant Funding | MCA specialty | Factor 1.30 – 1.55 typical; higher for D-paper | $5,000 – $400,000 | Funding in 24 – 48 hours |
| Lendr | MCA + multi-product | Factor 1.18 – 1.42 (MCA); APR varies for term and LOC | $5,000 – $1,000,000 | Funding in 24 hours for approved files |
| Kalamata Capital | MCA specialty | Factor 1.22 – 1.45 depending on paper grade | $10,000 – $500,000 | Funding in 48 – 72 hours |
| Libertas Funding | MCA specialty | Factor varies by deal; typical 1.20 – 1.42 | $10,000 – $2,000,000 | Funding in 24 – 72 hours after approval |
| Lendio | Marketplace | Varies by underlying lender; LOC APRs from 8%, MCA factors from 1.10 | $500 – $5,000,000+ (depends on which lender in marketplace funds) | Offers in 15 minutes; funding 24 hours to several weeks |
| Fundera (by NerdWallet) | Marketplace | Varies — SBA APRs from 7%, term loans from 12%, MCAs from 1.10 factor | $500 – $5,000,000+ (varies by lender) | Pre-qualification in minutes; funding 1-30 days depending on lender |
| Nav | Marketplace | Varies; shows pre-qualified offers based on your profile | Varies by underlying lender | Pre-qualification immediate; funding varies |
| Biz2Credit | Marketplace | Varies; SBA from prime+2.75%, term from 7%, MCA from 1.10 | $25,000 – $6,000,000+ | Offers in 24-72 hours |
| Wayflyer | Revenue-based financing | Single fee 3 – 8% of advance; effective cost varies by repayment speed | $10,000 – $20,000,000 | Funding in 24 hours |
| Clearco | Revenue-based financing | Single fee 6 – 12% of advance | $10,000 – $20,000,000 | Funding in 1 – 5 business days |
| PayPal Working Capital | Processor financing | Single fixed fee disclosed at offer (typically 8 – 18% of advance) | $1,000 – $250,000 | Funding in minutes once accepted |
| Stripe Capital | Processor financing | Single fixed fee disclosed at offer (typically 5 – 18%) | $500 – $1,000,000+ (varies by Stripe volume) | Funds same business day for eligible merchants |
| Shopify Capital | Processor financing | Single fixed fee — typical 5 – 14% of advance | $200 – $2,000,000+ | Funds in 2 – 5 business days after acceptance |
| Live Oak Bank | Bank lender | SBA 7(a) APR prime + 2.75% to 4.75%; 504 fixed long-term rates | $25,000 – $25,000,000+ | 30 – 90 days underwriting (SBA standard) |
| Bankers Healthcare Group (BHG) | Specialty vertical | Term loan APR 12 – 22%; LOC APR varies | $20,000 – $500,000+ | Funding in 3 – 7 business days |
| CAN Capital | MCA + multi-product | Factor 1.18 – 1.45 typical | $2,500 – $250,000 | Funding in 1 – 3 business days |
| Uplyft Capital | MCA specialty | Factor 1.25 – 1.50 typical | $5,000 – $1,000,000 | Funding in 24 hours for clean files |
| Funding Circle | Term + LOC | APR 11.29% – 30.12% (fixed term loan) | $25,000 – $500,000 | Funding in 1 – 3 business days after approval |
| Bank of America Small Business | Bank lender | SBA 7(a) APR prime + 2.75% to 4.75%; term loans 7 – 25% | $10,000 – $5,000,000+ | Pre-qualification minutes; funding 5 – 60 days |
| JPMorgan Chase Business | Bank lender | SBA 7(a) APR prime + 2.75% to 4.75%; LOC APR 9% – 20% | $10,000 – $25,000,000 | Pre-qualification minutes; funding 5 – 60 days |
| Wells Fargo Small Business | Bank lender | SBA 7(a) APR prime + 2.75% to 4.75%; LOC 9 – 22% APR | $10,000 – $5,000,000+ | Pre-qualification minutes; funding 5 – 60 days |
| American Express Business Blueprint | Bank lender | Monthly fee 3-9% (effective APR 15-50%) | $2,000 – $250,000 | Funding in 1 – 3 days for eligible Amex Business customers |
| PNC Business Credit | Bank lender | SBA 7(a) APR prime + 2.75% to 4.75%; term 7-20% APR | $25,000 – $10,000,000+ | Underwriting 30-60 days standard |
| Capital One Business | Bank lender | Business credit card APRs 18-30%; term loans 7-20% | $10,000 – $5,000,000 | Credit cards instant; loans 5-30 days |
| National Funding | MCA + multi-product | Factor 1.18 – 1.45; equipment APR 10-25% | $5,000 – $500,000 | Funding in 24-72 hours |
| SmartBiz Loans | Bank lender | SBA 7(a) APR prime + 2.75% to 4.75% | $30,000 – $5,000,000 | Pre-qualification in 5 minutes; funding 30-45 days |
| Kabbage (Amex Business Working Capital) | Bank lender | Monthly fee 3 – 12% | $1,000 – $250,000 | Approval in minutes for eligible Amex business cardholders |
| Clover Capital (Fiserv) | Processor financing | Single fixed fee disclosed at offer (10 – 16%) | $500 – $1,000,000 | Funding in 1 – 3 business days |
| Amazon Lending | Processor financing | APR varies (typical 6 – 16% APR for term loans) | $1,000 – $750,000 | Funds in 5 business days once accepted |
| Backd | MCA specialty | Factor 1.18 – 1.45 | $10,000 – $500,000 | Funding in 24 – 48 hours |
| Mantis Funding | MCA specialty | Factor 1.35 – 1.55+ (C-paper pricing) | $5,000 – $300,000 | Funding in 24 – 48 hours |
| ForwardLine | MCA specialty | Factor 1.22 – 1.42 | $5,000 – $250,000 | Funding in 24 – 72 hours |
| Pearl Capital | MCA specialty | Factor 1.25 – 1.45 | $5,000 – $250,000 | Funding in 1 – 3 business days |
| TBS Factoring | Specialty vertical | 1 – 3% per invoice (recourse); 2 – 4% (non-recourse) | Per-invoice up to $10,000,000 monthly volume | Same-day funding for verified invoices |
| RTS Financial | Specialty vertical | 1 – 3% per invoice (varies by volume + recourse type) | Per-invoice; no formal monthly cap | Same-day funding for verified invoices |
| Apex Capital | Specialty vertical | 1.5 – 4% per invoice | Per-invoice; tailored to fleet size | Same-day funding |
| OTR Capital | Specialty vertical | 1.5 – 3.5% per invoice | Per-invoice; no formal cap | Same-day funding |
| eCapital | Specialty vertical | 1 – 3% per invoice | $50,000 – $50,000,000+ | Same-day to next-day funding |
| Triumph Business Capital | Specialty vertical | 1 – 3% per invoice | Per-invoice; tailored to fleet | Same-day funding |
| altLINE (Southern Bank) | Specialty vertical | 0.5 – 3% per invoice (lower than non-bank competitors) | $30,000 – $4,000,000 per month | 1 – 3 business days from setup |
| Pipe | Revenue-based financing | Single fee, typically 6 – 14% per advance (effective APR varies) | Varies by ARR | Funding in 24 – 72 hours |
| Capchase | Revenue-based financing | Discount on future ARR (typical effective cost 8 – 15% APR) | $25,000 – $100,000,000+ | Funding in 48 – 72 hours after approval |
| Settle | Revenue-based financing | Single fee (typical 1 – 3% per invoice for AR financing) | $25,000 – $5,000,000 | Funding in 1 – 3 days |
| Liberis | Revenue-based financing | Single fee, typical 6 – 12% of advance | $1,000 – $1,000,000+ | Funding in 24 hours |
| Ampla | Revenue-based financing | LOC APR 8 – 18%; term loan APR 10 – 22% | $25,000 – $25,000,000 | Funding in 1 – 5 business days |
| Currency Capital | Specialty vertical | APR 8 – 22% (varies by equipment + credit) | $10,000 – $2,000,000 | Funding in 24 – 72 hours after approval |
| Beacon Funding | Specialty vertical | APR 8 – 25% | $5,000 – $1,000,000 | Funding in 1 – 5 business days |
| Crest Capital | Specialty vertical | APR 7 – 22% | $5,000 – $1,000,000 | Approval in 4 hours; funding 1 – 3 days |
| Newtek Small Business Finance | Bank lender | SBA 7(a) APR prime + 2.75% to 4.75%; alt-fin varies | $25,000 – $15,000,000 | SBA 30 – 60 days; alternative products 1 – 7 days |
| Celtic Bank | Bank lender | SBA 7(a) APR prime + 2.75% to 4.75% | $5,000 – $5,000,000+ | 30 – 60 days SBA standard |
| Cross River Bank | Bank lender | Varies by partner product | Varies by partner | Varies by partner |
| Stearns Bank | Bank lender | SBA 7(a) prime + 2.75% to 4.75%; equipment 8 – 18% APR | $25,000 – $10,000,000+ | SBA 30 – 60 days; equipment 5 – 10 days |
| Byline Bank | Bank lender | SBA 7(a) prime + 2.75% to 4.75% | $50,000 – $25,000,000+ | 30 – 60 days SBA |
| Kiva | Microloan / CDFI | 0% interest (donation-funded) | $1,000 – $15,000 | 30 – 60 days crowdfunding process |
| Accion Opportunity Fund | Microloan / CDFI | APR 8.49% – 24.99% | $5,000 – $250,000 | Funding in 5 – 15 business days |
| Lendeavor (Provide) | Specialty vertical | APR 6 – 14% (practice acquisition); 8 – 18% (working capital) | $25,000 – $5,000,000 | Funding in 5 – 20 days |
| YouLend | Revenue-based financing | Single fee, varies by partner platform | $3,000 – $5,000,000+ | Funding in 24 hours via platform integration |
| Fundation | Term + LOC | APR 7.99% – 28.99% (term loan); LOC APR varies | $20,000 – $500,000 | Funding in 1 – 3 business days |
| United Capital Source | Marketplace | Varies by underlying lender; MCA factor 1.18 – 1.50 | $10,000 – $5,000,000+ | Funding in 1 – 7 days |
| Become | Marketplace | Varies by underlying lender | $5,000 – $1,000,000 | Pre-qualification in minutes; funding 1-30 days |
| Fundshop | Marketplace | MCA factor 1.18 – 1.45 (varies by underlying funder) | $5,000 – $500,000 | Offers in 24 hours; funding 1 – 3 days |
| Finance Factory | Marketplace | Varies by underlying product | $5,000 – $5,000,000+ | Varies |
| Par Funding (Complete Business Solutions Group) | MCA specialty | (Historical 1.30 – 1.55+) | (No new origination) | (No longer originating) |
| RapidFund Capital | MCA specialty | Factor 1.25 – 1.45 | $5,000 – $250,000 | 24 – 48 hours after approval |
| National Business Capital | Marketplace | Varies by product type | $10,000 – $5,000,000 | Funding in 1 – 14 days depending on product |
| Swift Capital | MCA + multi-product | Factor 1.20 – 1.45; term loan 12-28% APR | $5,000 – $500,000 | Funding in 1 – 3 days |
| AdvancePoint Capital | MCA specialty | Factor 1.25 – 1.50 | $5,000 – $1,000,000 | Funding in 24 – 72 hours |
| CapitalBridge Funding | MCA specialty | Factor 1.22 – 1.45 | $5,000 – $500,000 | 1 – 3 business days |
| Velocity Business Funding | Revenue-based financing | Single fee 8 – 16% of advance | $5,000 – $750,000 | Funding in 24 – 48 hours |
| BFS Capital | MCA + multi-product | Factor 1.18 – 1.45; term loan APR 14 – 30% | $4,000 – $500,000 | 1 – 3 business days |
| Perfect Alliance Capital | MCA specialty | Factor 1.22 – 1.48 | $5,000 – $500,000 | 1 – 3 business days |
| Advance America Capital | MCA specialty | Factor 1.25 – 1.45 | $5,000 – $250,000 | 24 – 72 hours |
| Knight Capital Funding | MCA specialty | Factor 1.24 – 1.45 | $5,000 – $500,000 | 1 – 3 business days |
| World Business Lenders | MCA specialty | Factor 1.25 – 1.50; secured term loan APR 15-30% | $10,000 – $500,000+ | 1 – 7 business days |
| Strategic Funding Source (Kapitus) | MCA + multi-product | Factor 1.18 – 1.45; term loan 12-28% APR | $10,000 – $750,000+ | 1 – 3 business days |
| Giggle Finance | MCA specialty | Factor 1.20 – 1.45 | $1,000 – $50,000 | Funding in 24 hours |
| Fundomate | MCA specialty | Factor 1.18 – 1.45 | $2,500 – $500,000 | Funding in 24 – 48 hours |
| Balboa Capital | Specialty vertical | Equipment APR 8 – 22%; working capital factor 1.18 – 1.40 | $5,000 – $250,000 | 1 – 3 business days |
| CIT (First Citizens) | Bank lender | Equipment APR 6 – 18%; commercial term rates competitive | $25,000 – $50,000,000+ | 5 – 21 days standard |
| Direct Capital (PNC Equipment Finance) | Specialty vertical | APR 8 – 20% | $5,000 – $250,000 | 1 – 5 business days |
| Smarter Finance USA | Specialty vertical | APR 8 – 25% | $5,000 – $250,000 | 1 – 7 business days |
| Upwise Capital | MCA specialty | Factor 1.22 – 1.50 | $5,000 – $500,000 | 1 – 3 business days |
| Founderpath | Revenue-based financing | Single discount on future ARR (effective 8-15% APR equivalent) | $10,000 – $5,000,000+ | Funding in 1 – 7 days |
| Re:cap | Revenue-based financing | Single discount on future ARR | €10,000 – €10,000,000+ | Funding in 1 – 5 days |
| Choco Up | Revenue-based financing | Single fee 6 – 12% of advance | $10,000 – $10,000,000 | Funding in 1 – 3 days |
| Banc of California | Bank lender | SBA 7(a) prime + 2.75% to 4.75% | $25,000 – $25,000,000+ | 30 – 60 days SBA standard |
3. ISO commission ranges (what brokers actually earn)
Independent sales organizations (ISOs) or "MCA brokers" are paid commissions by funders when they originate a deal. These commissions are typically embedded in the factor rate quoted to the merchant. Published commission ranges as of 2026:
| Funder | Commission to ISO | Source |
|---|---|---|
| Greenbox Capital | Up to 19% of funded amount; renewals continue commission | Public ISO recruitment page |
| Accord Business Funding | Up to 15% upfront, 100% on renewals, next-day commission payment | Public ISO recruitment page |
| Rapid Finance | Up to 5% (per partner partner agreement) | Public partner program disclosure |
| Credibly | Not publicly disclosed; market average 6–12% | Aggregated ISO survey data |
| OnDeck | Direct-lender model; broker access requires 2+ years + $1M/mo volume | Public ISO program page |
| Most third-party MCAs | Typically 3–8 points of funded amount; programs span 2–12 points | 2026 broker-industry guides (MCA Leads Pro; SendStrike) |
Why this matters to merchants: the ISO commission is baked into your factor rate. On a $50K advance at 1.32 factor, a 8-point commission means $4,000 of the $16,000 fee goes to the broker — and outlier programs advertise up to 15–19 points (Greenbox Capital publicly advertises "up to 19%"). Going direct to the funder (where possible) removes that layer. OnDeck, Bluevine, and Fundbox can all be approached directly.
4. State commercial financing disclosure law status (2026)
Ten states have enacted commercial financing disclosure laws as of mid-2026. A common misconception — repeated across broker sites — is that these laws all require APR-equivalent disclosure. Only California and New York mandate APR today(Maryland's HB 1007, effective October 1, 2026, will make it three); the other eight require standardized cost disclosure (total dollar cost, finance charge, payment schedule) without an APR figure. Status as of July 2026, verified against statutes and law-firm regulatory trackers:
| State | Law (effective) | Covers offers up to | APR required? | Provider/broker registration |
|---|---|---|---|---|
| California | SB 1235 (regs Dec 2022) + SB 362 (Jan 1, 2026) | $500K | Yes — SB 362 adds APR re-disclosure any time a price is stated, and bans presenting a factor rate as an "interest rate" | Annual provider reporting (DFPI) |
| New York | CFDL / 23 NYCRR 600 (Aug 2023) | $2.5M | Yes (estimated APR for sales-based financing) | No |
| Utah | CFRDA (Jan 2023) | $1M | No | Yes — Utah DFI annual registration |
| Virginia | HB 1027 (Jul 2022) | $500K (sales-based only) | No (finance charge, not APR) | Yes — Virginia SCC |
| Connecticut | PA 23-201 (disclosures Jul 2024) | $250K (sales-based) | No | Yes — CT Dept. of Banking |
| Florida | HB 1353 (transactions from Jan 1, 2024) | $500K | No | No registration; broker advance-fee ban; AG enforcement |
| Georgia | SB 90 (Jan 1, 2024 — fully effective) | $500K | No | No |
| Kansas | CFDA (Jul 2024) | $500K | No (total dollar cost) | No (AG-enforced) |
| Missouri | SB 1359 (Feb 2025) | $500K-class | No | Brokers register with Div. of Finance + $10K surety bond |
| Texas | HB 700 (Sept 1, 2025; registration due Dec 31, 2026) | $1M (sales-based) | No — statute bars the Finance Commission from capping rates | Yes — OCCC provider/broker registration |
| Other states (40) | No enacted law | — | — | Illinois and New Jersey bills remain pending, not enacted, despite some broker sites claiming otherwise |
Texas HB 700 goes beyond disclosure — merchants should know three provisions: it voids confession-of-judgment clauses, it prohibits ACH auto-debit unless the provider holds a perfected first-position security interest in the account (a structural challenge to standard MCA mechanics that industry press has covered extensively), and it carries a $10,000 civil penalty per violation. Note: the widely circulated "Texas SB 1280" was an introduced companion bill that did not become law; HB 700 is the enacted statute.
5. Typical funding amounts by industry (US averages, 2026)
| Industry | Typical Range | Notes |
|---|---|---|
| Restaurants (independents) | $15,000 – $300,000 | Strong card volume unlocks split-funded structures |
| Trucking (small fleets) | $20,000 – $500,000 | 5+ trucks unlocks better terms; factoring often beats MCA |
| Retail | $10,000 – $250,000 | Card-heavy retailers qualify for split-funded |
| Construction | $15,000 – $400,000 | Factoring usually better fit than MCA |
| Healthcare (dental, specialty) | $25,000 – $500,000 | Specialty medical lenders price tighter than MCA |
| Auto repair | $10,000 – $200,000 | Equipment financing better for diagnostic + lifts |
| E-commerce | $10,000 – $500,000 | Platform lenders (Shopify/Wayflyer) usually cheaper |
| HVAC contractors | $15,000 – $300,000 | Equipment financing better for vans + tools |
| Manufacturing | $25,000 – $1,000,000 | SBA or equipment financing almost always cheaper |
| Professional services | $10,000 – $400,000 | Fintech LOC usually cheaper than MCA |
6. APR-equivalent calculation methodology
The standard APR-equivalent formula used in NYDFS, California SB 1235, and Virginia commercial financing disclosure regimes:
APR = ((Factor − 1) × 365 × 2) / (Term in days × (1 + Factor))
Where:
- Factor = factor rate (e.g. 1.32 means 32 cents of fee per dollar)
- Term in days = expected payback period (typically 180–365 days for MCA)
The 2× multiplier in the numerator approximates the average outstanding balance over the life of a daily-amortizing product, since the principal balance declines as payments are made. This is an approximation for merchant comparison, not the regulatory computation: the NY and CA disclosure regimes specify Regulation Z–style APR calculations for sales-based financing (estimated from historical or underwriting-projected sales). Our approximation tracks the regulatory figure closely for typical MCA terms and is far better than comparing factor rates alone — but a regulator-form disclosure may differ by a few points.
Example: $50,000 advance, 1.32 factor, 270-day expected payback.
- APR = ((1.32 − 1) × 365 × 2) / (270 × (1 + 1.32))
- APR = (0.32 × 730) / (270 × 2.32)
- APR = 233.6 / 626.4
- APR ≈ 37.3%
7. Reconciliation policies (how MCAs adjust to revenue volatility)
A reconciliation clause allows the daily ACH amount to be adjusted if merchant revenue drops materially. Not all MCAs include reconciliation. As of 2026:
- Funders with formal reconciliation: Credibly, OnDeck, Rapid Finance, CFG Merchant Solutions (case-by-case)
- Funders with limited or no reconciliation: most broker-placed MCAs; many C-paper funders
- Processor-embedded (Toast Capital, Square Capital): automatic reconciliation built into the product — repayment is a percentage of daily processor sales, so daily payment naturally adjusts to revenue.
8. What changed in 2026 — the citable facts
Five developments define the 2026 MCA landscape. Each is primary-sourced and safe to cite:
- MCAs escaped federal data collection. The CFPB's revised small-business lending rule (Section 1071, final rule May 1, 2026) excludesmerchant cash advances from covered credit transactions — no MCA provider will report pricing or approval data to federal regulators under the rule.
- The SBA closed the cheapest exit ramp. SOP 50 10 8 (effective June 1, 2025) bars SBA 7(a) and Express loan proceeds from refinancing merchant cash advances — merchants can no longer count on an SBA refi to escape expensive MCA debt.
- The largest MCA enforcement outcome on record stands. The New York Attorney General's judgment against the Yellowstone Capital network (announced January 2025): $1.065 billion, including over $534M in debt cancellation for 18,000+ businesses; the AG documented advances with effective annualized rates up to ~820%.
- Demand is measurable and stable. Per the Federal Reserve's 2026 Small Business Credit Survey (fielded 2025, N=6,525), 8% of small employer firms applied for a merchant cash advance in the prior 12 months; online-lender application share has risen from 17% (2020) to 29% (2025).
- Platform-embedded funding is the growth story. 2026 industry reporting shows point-of-sale and platform funders scaling fast: Lightspeed originated $257M in MCAs in nine months and calls MCA its largest use of cash; eBay Seller Capital passed $1B cumulative; Pipe reported $300M across 15,000 merchants in two years. The advance is increasingly sold inside the software merchants already use.
How to cite this reference
This page is licensed CC BY 4.0. Quote freely with attribution to Fundnode and a link to https://fundnode.co/reference/mca-pricing-2026. Recommended citation format:
Keti, K. (2026). "MCA Pricing Reference 2026: Factor Rates, APR-Equivalents, Commission Ranges." Fundnode. https://fundnode.co/reference/mca-pricing-2026
Go deeper
- Factor rate — definition, the math, and what moves it
- Greenbox Capital review — the funder with up to 19% ISO commissions
- Credibly vs Bluevine — factor-rate MCA vs APR line of credit, compared
- Factor rate → APR converter — term-specific APR-equivalents for any offer