Glossary · Industry roles
Syndication
Syndication is when investors fund part of an MCA alongside the funder and receive a matching share of the payments, minus fees, as the merchant pays.
Also called MCA syndication, participation, syndicator
A funder may sell participations in a deal, for example 50% of a $100,000 advance, to syndicators. Each participant shares pro rata in what the merchant remits and in any losses, and the funder typically keeps a management or syndication fee.
Syndication is a funder-side activity that needs an investor ledger and payment waterfalls. Brokers mostly meet it when a syndicator is also a referral source or when a funder asks about participation interest.
Track it on every deal
Statements, offers, positions and commissions with the math worked out, in one CRM for lending companies.
Related
- SolutionMCA fundersA CRM for merchant cash advance funders working ISO submissions: intake, statement figures, underwriting notes and conditions, offers, remittance tracking and renewals.Read
- GlossaryFunderA funder is the company that underwrites and pays out a cash advance or business loan. ISOs submit deals to funders and are paid commission when they fund.Read
- GlossaryRTR (right to receive)RTR is the total amount of future receivables a funder buys in a merchant cash advance: the advance times the factor rate, also called the payback.Read
- GlossaryDefaultIn an MCA, a default is a breach of the contract, such as blocking the funder's debits, switching banks, diverting receipts or stacking against terms.Read
- GlossaryMerchant cash advance (MCA)A merchant cash advance is a funder buying part of a business's future receivables at a discount, repaid by a share of sales or fixed debits until the RTR is delivered.Read