MCA Syndication: Managing & Paying Syndicators

MCA syndication lets partners, typically ISOs, co-fund a share of a merchant cash advance in exchange for a proportional share of collections, less the fees the funder keeps. The platform tracks both sides: the money in, collecting each partner’s investment, and the money out, paying their share over time. MCA Track is MCA syndication software that calculates each syndicator’s share of every payment automatically.

Key takeaways

• Syndication lets partners co-fund a share of an advance in exchange for a proportional share of collections, less fees.
• Each syndicator is added to the advance with a participation percentage, management fee %, and residual commission %.
• The system calculates the funder’s net advance and tracks each syndicator’s proportional share of every payment automatically.
• Payouts are reviewed with the Syndicator Earnings Report and reconciled against the Syndicator Payable Report.
• A brand-new syndicator must be added before any renewal is processed; once a renewal history exists you cannot add one.

What is MCA syndication?

Syndication lets partners (typically ISOs) co-fund a share of an advance in exchange for a proportional share of collections, less fees the funder keeps. MCA Track tracks both sides of the arrangement: the money in, collecting the partner’s investment, and the money out, paying their share over time.

This lets funders raise capital for deals while keeping a single record of who is owed what, with each partner’s position updated from the same payment data the funder already collects.

How do you set up a syndicator in MCA Track?

Mark the ISO as syndicating and add a bank account for their ACH credits. On the advance, add the syndicator with their participation percentage, management fee %, and residual commission %. The system then calculates the funder’s net advance and tracks each syndicator’s proportional share of every payment automatically.

To add a syndicator to a cash advance, the typical workflow is:

1. Mark the ISO as syndicating and add a bank account for their ACH credits.
2. On the advance, select the syndicator and enter their participation percentage.
3. Enter the management fee %, residual commission %, and any upfront management fee.
4. Invoice the syndicator for their stake, and the system tracks their proportional share of every payment.

What terms define a syndicator’s stake?

Each syndicator on an advance is defined by a small set of terms that determine how much they fund and how their collections are split. The table below lists the terms captured when adding a syndicator to a cash advance.

How do you pay syndicators?

Use the Syndicator Earnings Report for the period to review what each partner is owed, drilling from syndicator to advance to individual payment to see the factor rate, share, fees deducted, and net. Check the partners (or specific advances or payments) to pay, optionally email each an activity-summary statement, and click Pay: either record a payout made outside the system or send the funds electronically. Reconcile against the Syndicator Payable Report to confirm nothing is left outstanding.

Funder preferences can block a syndicator payout if the merchant’s own payback balance is negative (overpaid) or if the syndicator has other outstanding unpaid deals. Electronic payouts are sent as ACH credits — see ACH processing for merchant cash advances.

How does syndication work with renewals?

Add a syndicator before any renewal is processed on the advance — once a renewal history exists you cannot add a brand-new syndicator. During a reup, existing syndicator terms carry forward automatically and the partner is invoiced only for the incremental new money.

Each collected payment feeds the syndicator split automatically; see how installments are recorded in recording and collecting MCA payments. For the full servicing picture, read the complete MCA servicing guide or book a walkthrough →

Frequently asked questions