MCA Broker Commission Rates 2026 — Tiered Benchmark by Deal Size
MCA broker commission rates in 2026 cluster around 8–15% of funded amount, but the actual rate on any given deal depends on deal size, funder tier, vertical risk, factor band, and the broker's submission volume with that funder. This page benchmarks the ranges, explains how the tiers work, and gives the negotiation levers brokers use to capture more spread per deal.
The data below aggregates publicly disclosed ISO commission schedules, industry surveys, and operator interviews. Individual funder commission schedules vary — use this as a benchmark to evaluate your own ISO offers, not as a quoted rate.
What You Get
- Commission Tier Benchmark: 8–15% by funded amount with size-bracket detail
- ISO Override Math: How sub-broker structures split commission across the chain
- Clawback Provision Map: What triggers clawback, how to negotiate caps, what funders allow
- Renewal Commission Norms: First renewal, ongoing renewal, refinance treatment across funders
- Negotiation Levers: Volume commitments, exclusivity carve-outs, points-vs-percentage trades
Commission Math by Deal Size
Smaller deals carry higher commission percentages because funder fixed costs (underwriting, ACH setup, contract administration) are similar regardless of deal size. Larger deals carry lower percentages but more absolute commission dollars. A $20K funded MCA at 14% pays the broker $2,800. A $200K funded MCA at 8% pays the broker $16,000. Same broker time per deal on the inbound side; very different economic outcomes.
Most brokers gravitate toward the $40K–$120K sweet spot — large enough to support reasonable commission, small enough that most merchants qualify and the funder's underwriting process is fast. Sub-$20K MCAs are typically uneconomic for both broker and funder once you account for opportunity cost. Above $200K, the deal often qualifies for term-loan or SBA alternatives that compete on rate, which slows close cycle.
How to Read an ISO Agreement Commission Schedule
The headline commission percentage in an ISO agreement is rarely the actual effective commission. Look for: (1) the tier table — what volume triggers higher percentages; (2) the clawback provisions — what window, what conditions, what percentage; (3) renewal treatment — what percentage of original commission applies on first, second, third renewal; (4) refinance treatment — does a refinance count as a new deal or a renewal; (5) factor-rate-dependent adjustments — some funders pay lower percentages on prime paper and higher on sub-prime.
Calculate your blended effective commission across your projected deal mix before signing. A 14% headline with aggressive clawback and 50% renewal can pay less than a 10% headline with capped clawback and 100% renewal commission. The agreement structure matters more than the headline number.
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Frequently Asked Questions
What's the typical MCA broker commission percentage?
8–15% of funded amount is the standard range. Most paper at 1.28–1.38 factor with 6–10 month terms pays brokers in the 10–13% band. Sub-prime paper (factor 1.40+) can pay 12–18%. Tier-1 paper (factor 1.18–1.24) pays 6–10%.
Do brokers earn commission on renewals?
Most funders pay renewal commission, but at a reduced rate (typically 50–70% of the original commission percentage). Some funders pay full commission on first renewal and reduce thereafter. A few funders pay zero on renewals — read the ISO agreement carefully.
What is ISO override?
ISO override is the layer of commission paid to a senior ISO who supervises or recruited the submitting broker. Typical override is 1–3% out of the broker's commission. So a 12% gross commission with 2% ISO override pays the submitting broker 10% and the override ISO 2%.
What's a commission clawback?
Clawback is the funder's right to reverse paid commission if the deal defaults within a specified window (typically 30–90 days). Some funders clawback the full commission; others prorate based on payments received. Negotiate clawback caps and windows aggressively — uncapped clawbacks are dangerous for new brokerages without diversified deal flow.
Can I negotiate higher commission with funders?
Yes, with volume. Funders maintain tiered commission schedules and bump brokers up tiers based on submission volume, approval rates, and persistency. Demonstrating consistent monthly volume above the tier threshold is the standard negotiation lever.
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