The short answer
The merchant cash advance market is estimated at roughly $21 billion in 2026, up from about $19.7 billion in 2025 and projected toward $27 billion by 2030. Average advance size sits near $50,000. Default rates run 11–18% typically and exceed 40% on stacked positions. ISOs and brokers originate an estimated 70–80% of all volume, and the top twenty funders account for 50–60% of it.
Market size
US merchant cash advance market, estimated
Deal size and terms
| Metric | Figure | Note |
|---|---|---|
| Average advance | ~$50,000 | Relatively stable year on year |
| Retail average | ~$25,000 | Materially below the overall average |
| Typical term | 3–18 months | Shorter terms carry higher effective cost |
| Typical factor rate | 1.15–1.50 | Driven by time in business, consistency and positions |
The gap between the overall average and the retail average is worth noting: deal size varies more by vertical than most summaries suggest, which is why a broker’s revenue per deal is largely a function of which merchants they talk to.
Default rates
Reported default rates
These sit far above traditional bank lending, which is the risk the pricing reflects. It also explains funder behaviour that can look arbitrary from the broker side — a decline on a file carrying three positions is a portfolio decision rather than a judgement about that merchant.
Who originates the volume
| Metric | Figure |
|---|---|
| Volume originated through ISOs and brokers | 70–80% |
| Share held by the top 20 funders | 50–60% |
| Remainder | A long tail of regional and specialist funders |
Those two figures together describe the industry’s shape: capital is concentrated, distribution is not. A small number of funders deploy most of the money and a large number of independent shops find most of the merchants — which is exactly why newer regulation has started naming brokers rather than stopping at funders.
The long tail matters most in construction, trucking and healthcare, where mainstream funders have historically been thinner and specialist relationships decide whether a file places at all.
Regulation, as of August 2026
| Metric | Figure |
|---|---|
| States with commercial financing disclosure laws | 10 |
| States requiring broker or provider registration | 7 |
| Texas registration deadline | 31 December 2026 |
| Largest single-state enforcement action | $1.065bn |
| TCPA statutory damages | $500–$1,500 per call |
| MCAs under CFPB Section 1071 | Excluded |
The full detail on each of those sits in the pages linked below, and the disclosure and registration counts are the two most frequently misreported numbers in this industry — several published write-ups still say eleven states and include New Jersey, whose bill was never enacted.
Lead market pricing
| Lead type | Typical range |
|---|---|
| Exclusive, verified | $65–$120 |
| Exclusive, unverified | $30–$65 |
| Fresh application, 0–30 days | $15–$45 |
| Real-time shared | $10–$30 |
| Live transfer | $50–$300 |
| Aged data | Under $5 |
| UCC and business data | $0.02–$0.20 |