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MCA glossary

Default rate

Definition

The share of advances that fail to be repaid in full under their original terms.

Typically 11–18% across the industry, with broader estimates spanning 10–25% depending on underwriting standards and segment. Stacked positions exceed 40%, which is the figure that explains most funder behaviour around existing positions.

Full guide

MCA industry statistics

Market size, default rates, average advance, channel share — with sources.

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