Merchant Cash Advance Glossary (A–Z)
A merchant cash advance glossary is a plain-English reference to the core MCA terms — advance amount, factor rate, payback, performance, syndication, and the ACH and risk concepts behind them — that funders and ISOs meet when servicing deals. MCA Track uses these same terms consistently across its dashboard, deal records, reports, and exports.
Key takeaways
- Payback equals the advance amount multiplied by the factor rate, so a 1.40 factor means the merchant repays 1.40 times the funded amount.
- A performance score near 100% means a deal is on track; above is ahead of schedule, below is behind.
- A refi (renewal) closes the old advance and opens a new one, while a reup adds funds to the existing advance in place and is reversible.
- Cleared figures count only fully settled money; pending figures add payments still in transit.
- A returned (NSF) payment does not count as paid and can trigger a return fee.
Merchant cash advance glossary of terms
The table below defines the MCA and MCA Track terms you will meet across the platform, in A–Z order.
| Term | Definition |
|---|---|
| ACH | The bank-to-bank network used to move money. A debit pulls funds (collecting repayments or a syndicator’s investment); a credit sends funds (disbursing to a merchant or paying a syndicator). |
| Advance Amount | The principal funded to the merchant — the money at risk. |
| Cleared vs. Pending | Cleared counts fully settled money; pending counts settled money plus payments still in transit. |
| DataMerch | An industry fraud and risk registry checked by federal tax ID during underwriting. |
| Disbursement | The record of money flowing out at funding — merchant net, prior-balance payoff, and amounts retained. |
| Factor Rate | A multiplier applied to the advance to set total payback (for example, 1.40 means repay 1.40 times the advance). |
| Management Fee | A recurring percentage the funder keeps from a syndicator’s share of each payment for servicing the deal. |
| NSF / Return | A payment the bank sends back (for example, insufficient funds); it does not count as paid and can trigger a return fee. |
| Payback Amount | The total owed, equal to the advance amount multiplied by the factor rate. |
| Performance Score | How repayment compares to schedule. Roughly 100% is on track; above is ahead; below is behind. |
| Position (Lien) | Where the funder’s claim ranks against other creditors. First position is repaid first; lower positions carry more risk. |
| Refi / Renewal | Closes the current advance and opens a new one, carrying the remaining balance forward. |
| Reup | Adds funds to an existing advance in place, without a new record. It is reversible and logged. |
| Split % / Holdback | On split deals, the share of daily sales remitted toward repayment. |
| Syndication | Partners co-fund a share of an advance and earn a proportional share of collections, less fees. |
| UCC / COJ | Filings that secure the funder’s claim (UCC) or pre-authorize judgment on default (COJ). |
What is the difference between a refi and a reup?
A refi (also called a renewal) closes the current advance and opens a brand-new one, carrying the remaining balance forward onto the new record. A reup instead adds funds to the existing advance in place — the amount increases and history stays on the same record. In MCA Track a reup is reversible and logged.
For the underlying math behind balances and renewals, see the MCA calculations reference and the cash advances and renewals guide. For the laws now governing how MCAs are disclosed and sold, see merchant cash advance regulation by state.
What does the performance score actually measure?
The performance score compares how much a deal has been paid against where it should be by now. A score near 100% means the deal is on track, above 100% means it is ahead of schedule, and below 100% means it is behind. It is a quick way to spot deals that need attention without reading every payment.
What is the difference between cleared and pending?
Cleared counts only money that has fully settled at the bank. Pending counts that settled money plus payments still in transit. The distinction matters because a returned (NSF) payment never counts as paid — so balances built on pending figures can shift if an in-transit payment is later returned.
Want these terms in context across a live servicing portfolio? Read the full MCA Track platform guide or book a walkthrough →
Frequently asked questions
Payback equals the advance amount multiplied by the factor rate. For example, a $50,000 advance at a 1.40 factor rate has a payback of 1.40 times the advance.
A refi (renewal) closes the old advance and opens a new one with the remaining balance carried forward. A reup adds funds to the existing advance in place, keeps the same record, and is reversible.
A performance score compares repayment to schedule. Around 100% means the deal is on track, above 100% means ahead, and below 100% means behind.
NSF stands for a returned payment, such as one the bank sends back for insufficient funds. It does not count as paid and can trigger a return fee.