MCA Leads Glossary — Everything You Need to Know
A comprehensive reference of merchant cash advance terminology. Whether you're a new broker or a seasoned ISO, bookmark this page for quick definitions.
ACH (Automated Clearing House)
An electronic network used for financial transactions in the United States. In MCA, ACH is the primary method for collecting daily or weekly remittances from a merchant's bank account. Most MCA funders require ACH access to automate repayment.
Advance Rate
The percentage of a merchant's monthly revenue that an MCA funder is willing to advance. Typical advance rates range from 75% to 150% of monthly revenue depending on risk factors. A higher advance rate means more capital for the business but may indicate higher cost of borrowing.
Aged Lead
A lead that was generated more than 30 days ago. Aged leads are significantly cheaper than fresh leads and are ideal for brokers running high-volume outreach campaigns. While conversion rates are lower, the cost-per-acquisition can still be favorable at scale.
Application Lead
A business owner who has started or completed a funding application. Application leads are high-intent prospects that have already expressed strong interest in obtaining capital. They typically convert at 3-5x the rate of standard leads.
Bank Statement Lead
A lead where the business owner has provided recent bank statements as part of their funding inquiry. These leads are among the highest-quality available because the merchant has already taken a concrete step toward securing financing. Bank statement leads allow brokers to pre-qualify deals before submitting to funders.
Broker
An intermediary who connects business owners seeking funding with MCA funders. Brokers earn commissions by sourcing deals, packaging applications, and submitting them to their funder network. Most MCA funders rely heavily on broker channels for deal flow.
Business Cash Advance
A lump-sum payment to a business in exchange for a percentage of future sales or receivables. Unlike traditional loans, MCAs are structured as purchases of future revenue. This distinction means they are not subject to usury laws in most states.
CAN-SPAM
The Controlling the Assault of Non-Solicited Pornography And Marketing Act, a US law governing commercial email. MCA brokers must comply with CAN-SPAM when sending marketing emails to leads, including providing opt-out mechanisms and accurate sender information.
Conversion Rate
The percentage of leads that result in a funded deal. In the MCA industry, conversion rates vary widely by lead type — fresh exclusive leads may convert at 5-15%, while aged leads may convert at 0.5-2%. Tracking conversion rate by lead source is essential for measuring ROI.
Cost Per Lead (CPL)
The price paid to acquire a single lead. CPL varies dramatically based on lead freshness, exclusivity, and qualification level. Fresh exclusive MCA leads can cost $20-75+, while aged leads may cost as little as $0.10-$2.00 each.
CRM (Customer Relationship Management)
Software used to manage leads, track communications, and monitor deal pipelines. Popular CRMs in the MCA space include Salesforce, HubSpot, and industry-specific tools. Effective CRM usage is critical for maximizing lead conversion and tracking broker performance.
Daily Remittance
The amount debited from a merchant's bank account each business day to repay an MCA. Daily remittance is calculated based on the holdback percentage applied to estimated daily revenue. This payment structure is one of the defining characteristics of merchant cash advances.
Data Enrichment
The process of enhancing lead data with additional information such as business revenue, industry classification, years in operation, and owner demographics. Enriched leads allow brokers to better prioritize outreach and tailor their pitch to each prospect's situation.
DBA (Doing Business As)
A trade name or fictitious business name that a company operates under, different from its legal entity name. DBA information is important in MCA leads for verifying business identity and cross-referencing with public records such as UCC filings.
Deduplication
The process of removing duplicate records from a lead database. Quality lead providers deduplicate data before delivery to ensure brokers aren't paying for the same lead twice. Deduplication is typically done by matching on phone number, email, EIN, or business name and address combinations.
Email Verification
The process of confirming that an email address is valid, deliverable, and associated with a real inbox. Verified emails dramatically improve outreach effectiveness and sender reputation. Reputable lead providers verify all email addresses before delivery.
Exclusive Lead
A lead sold to only one buyer. Exclusive leads have no competition from other brokers contacting the same prospect, resulting in significantly higher conversion rates. They command a premium price — typically 3-5x the cost of shared leads.
Factor Rate
The multiplier used to calculate the total repayment amount on an MCA. A factor rate of 1.30 on a $100,000 advance means the merchant repays $130,000. Factor rates typically range from 1.15 to 1.50 depending on risk, with most deals falling between 1.25 and 1.40.
Fresh Lead
A lead generated within the last 0-30 days. Fresh leads represent businesses that have recently expressed interest in funding and are actively exploring their options. They convert at much higher rates than aged leads because the prospect's need is current and top-of-mind.
Full Submission Lead
A lead that includes a completed MCA application along with supporting documents like bank statements and a signed authorization. These are the most valuable leads in the MCA industry because they can be submitted directly to funders for underwriting with minimal additional work from the broker.
Funder
A company that provides the actual capital in a merchant cash advance transaction. Funders underwrite deals, advance funds to merchants, and collect repayment. Some funders work exclusively through broker/ISO channels, while others also accept direct applications.
Holdback Percentage
The percentage of daily credit card sales or revenue withheld by the funder as repayment. Typical holdback percentages range from 10% to 25%. A lower holdback means smaller daily payments but a longer repayment period for the merchant.
ISO (Independent Sales Organization)
A company authorized to market and sell merchant services and funding products on behalf of funders. ISOs typically operate as larger brokerage firms with multiple sales agents. They often have preferred relationships with funders and may receive better commission structures than individual brokers.
Lead Scoring
A methodology for ranking leads based on their likelihood to convert. Factors commonly used in MCA lead scoring include monthly revenue, time in business, credit score, industry type, and recency of inquiry. Effective lead scoring helps brokers prioritize their highest-value prospects.
Live Transfer Lead
A lead that is delivered as a real-time phone call. A call center agent qualifies the business owner and then transfers the live call directly to the broker or funder. Live transfers have the highest conversion rates of any lead type because the prospect is already on the phone and engaged.
MCA (Merchant Cash Advance)
A financing product where a business receives a lump sum of capital in exchange for a percentage of future sales or revenue. MCAs are not technically loans — they are purchases of future receivables. This structure allows faster approvals and funding, often within 24-48 hours, making them popular with small businesses that need capital quickly.
Monthly Revenue
The total gross revenue a business generates per month, typically verified through bank statements. Monthly revenue is one of the most important underwriting criteria for MCA approvals. Most funders require a minimum of $10,000-$15,000 in monthly revenue to qualify.
Pay-As-You-Go
A pricing model where brokers purchase leads on demand without long-term contracts or subscriptions. Pay-as-you-go plans offer flexibility for brokers who want to test lead quality or have variable monthly budgets. Per-lead costs are typically higher than subscription plans.
Phone Validation
The process of verifying that a phone number is active, callable, and associated with the intended contact. Phone validation checks for disconnected numbers, line type (mobile vs. landline vs. VoIP), and carrier information. Validated phone data is essential for outbound calling campaigns.
Renewal Lead
A business owner who has previously received an MCA and is nearing the end of their repayment or is eligible for additional funding. Renewal leads are highly valuable because the merchant is already familiar with the MCA process and has a track record of repayment.
Return Policy
The terms under which a lead provider will replace or credit bad leads. Common reasons for returns include disconnected phone numbers, invalid business information, or leads that don't meet the agreed-upon criteria. A clear return policy is an important indicator of a quality lead provider.
SIC Code
Standard Industrial Classification code — a four-digit code that categorizes businesses by their primary type of activity. SIC codes are used in MCA lead filtering to target specific industries. Some industries like restaurants, trucking, and construction have particularly high MCA demand.
Stacking
The practice of a business taking on multiple MCAs simultaneously from different funders. Stacking increases risk for all parties and is generally discouraged by funders. UCC filings are commonly used to detect stacking before approving new advances.
Submission Lead
A lead that has been submitted to at least one funder for underwriting consideration. Submission leads indicate the business owner has moved beyond the inquiry stage and is actively pursuing funding. These leads may be available as declines or withdrawals from other brokers.
TCPA Compliance
Adherence to the Telephone Consumer Protection Act, which governs telemarketing calls, auto-dialed calls, pre-recorded messages, and text messages. TCPA violations can result in penalties of $500-$1,500 per call. MCA brokers must ensure their lead data includes proper consent records before making outbound calls.
Time in Business
The length of time a company has been operating, typically measured from its incorporation or registration date. Most MCA funders require a minimum of 4-6 months in business. Longer time in business generally correlates with lower risk and better approval terms.
UCC Filing
A Uniform Commercial Code filing that creates a public record of a funder's lien on a business's future receivables. UCC filings are standard practice in MCA transactions and serve as notice to other funders. They are also a valuable source of lead data, as they identify businesses that have previously received funding.
UCC Lead
A lead generated from public UCC filing records, identifying businesses that have previously received an MCA or other secured financing. UCC leads are popular because they represent proven MCA borrowers who may need renewal funding. They are typically sold as aged or bulk leads.
Underwriting
The process of evaluating a business's risk profile to determine MCA approval, advance amount, and pricing. Underwriting typically involves reviewing bank statements, credit reports, time in business, and industry risk. Most MCA underwriting decisions are made within 24 hours.