What an incredible year 2021 was in the MCA industry. The comeback from where we were just 12 months ago was staggering. I work with many ISO teams that experienced record years even exceeding their Pre Covid numbers. I have seen many new players come into the industry in the past year trying to capitalize on the MCA turnaround. In addition, this month I attended Broker Fair in New York and had an opportunity to meet with many top ISO Teams and Funders. It was great to get back to in person meetings. I have a few takeaways from 2021 that I would like to share with the hopes that these will help MCA Teams in the new year .

Funding Partners 

You can generate as many submissions as you like, if you don’t have funders to give your clients solid offers you are wasting your time and money. I speak with many brokers who shotgun their deals to 20-30 funders and try to get the best offer. This is a great way to get your deals backdoored. It’s also very difficult to establish a trusting relationship with a funder if you are not sending him deals regularly, getting approvals ,and selling the deals. The ISO teams that are funding several million dollars a month are working with a small number of funders who trust them and give them the best offers. You should have 1-3 funders for A-B ,C-D, and consolidations. If you get good funders to help you with your deals your business will go to the next level. 


The marketing and lead generation part of MCA has changed drastically over the past year. During Covid the number of submissions which eventually become aged leads was down substantially. In addition brokers were not buying transfers or opt-in leads during this period.The industry suffered a shortfall for over a year of  leads generated. This has adjusted as businesses have opened and merchants are back looking for capital.  In my conversations with some of the top ISO Teams I am hearing teams increasing their marketing budgets and diversifying the types of leads they are using. Teams are texting , emailing and making outbound calls. These teams are combining this method with purchasing live transfers and inbound leads via text,and email.


While attending Broker Fair many of my clients were discussing syndicating and building their own portfolios. Many brokers were telling me that they put a percentage every month of their earnings back into their deals. A lot of brokers have the goal of becoming funders and this is a great start. As the industry continues to grow and more people come in, look for a lot more syndication platforms to pop up in the next few years.

With merchants returning to work, a record new businesses opening and new lending products being created everyday, it looks like 2022 with be one of the biggest years ever in the MCA industry.

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