Every successful MCA shop runs on the same uncomfortable truth: cold leads are how you survive year one, renewals are how you get rich starting year two. The math is unforgiving — and beautiful — once you understand it.
The 60% rule
Most MCA contracts allow renewal eligibility at 50–60% paydown. The shops that win don't wait for the merchant to call them — they call the merchant the day they hit 60%, knowing that if they don't, three other ISOs will.
If your average MCA term is 9 months and your average paydown to renewal is 5.5 months, every funded merchant becomes a renewal opportunity twice a year. Model that out for a 200-merchant book and the income is significant.
A simple model
Assume: 200 active merchants, $40K average original deal, 9-point average commission, 55% renewal close rate, 1.4 renewals per year per merchant.
200 × 1.4 × 0.55 × $40,000 × 0.09 = $554,400 in renewal commissions before any new business is written.
The cadence
- ▸Day 30 post-funding: courtesy check-in, no pitch
- ▸Day 60: 'how's it going' touch, log any concerns
- ▸60% paydown: renewal pitch (this is the call that produces revenue)
- ▸75% paydown: second renewal pitch if no for the first
- ▸Final 30 days of original term: pre-payoff renewal offer
Why most shops fumble this
Two reasons. First, no one tracks paydown by merchant in their CRM with any discipline — so the 60% trigger never fires. Second, reps prefer hunting cold over working renewals because the cold close feels like more of a win, even though the renewal pays the same and closes faster.
Build the operational discipline. Renewals are where ISO careers go from 'fine' to 'life-changing.'
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