Public default data in MCA is scarce. Funders don't publish their loss rates and lobby groups don't either. But based on industry conversations, court filings, and aggregated broker experience, here's what 2026 default rates roughly look like by vertical.
Lower-default industries
- ▸Medical practices (dental, vet, chiropractic): 3–7% default rate
- ▸Professional services (CPA firms, law firms): 4–8%
- ▸Manufacturing (established): 5–9%
- ▸Wholesale distribution: 6–10%
Mid-default industries
- ▸Construction & trades: 8–14% (varies sharply by sub-trade)
- ▸Auto repair: 9–13%
- ▸E-commerce: 10–15%
- ▸Retail (brick-and-mortar): 11–16%
Higher-default industries
- ▸Restaurants & food service: 14–20%
- ▸Trucking owner-operators: 15–22%
- ▸Personal services (salons, spas): 12–18%
- ▸Newer cannabis-adjacent businesses: 18%+
What this means for brokers
Funders price these defaults into their factor rates. A construction deal at 1.32 factor and a restaurant deal at 1.42 factor reflect the underlying loss curves. When you're advising a merchant, understand that 'why is my rate higher than my brother-in-law's?' usually traces back to industry risk.
It also explains why some funders refuse certain industries entirely. If you're submitting trucking paper to a funder that doesn't want trucking, you're wasting submissions.
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