How MCA Brokers Get Paid
Most merchant cash advance brokers are paid a commission by the funder after a deal funds. The funder builds that cost into the price, so it isn't free to the owner, but the owner doesn't pay it separately. In states like Connecticut and Virginia, broker compensation shows on the disclosure form. A broker asking the owner for money up front is a red flag.
How do MCA brokers usually get paid?
| Question | Usual answer | Why it matters |
|---|---|---|
| Who pays? | The funder | It's built into the offer's price |
| When? | After funding | A fee before funding is a warning sign |
| How much? | Set in the broker's agreement with the funder | Ask for it in dollars |
| On a renewal? | Often again | Each new advance can carry new broker pay |
Where does the commission show on an offer?
Connecticut's form has a broker compensation line for money the provider pays a broker from the financed amount. Virginia's disclosure list includes broker compensation. Texas's disclosure does too. Elsewhere, ask.
What does this look like with real numbers?
Say an offer is $40,000 at 1.36. If the funder pays the broker a commission from that deal, it's part of why the factor is 1.36 and not lower. The owner's question isn't whether the broker is paid; it's whether this offer, with the pay built in, beats the others. Compare with the offer comparison tool.
How does Afterfirst get paid?
Applying is free, and you never pay Afterfirst a fee. The funder pays our commission only if a deal funds, and the amount is in the offer paperwork before you sign. Brokers who send us files are paid under a written partner agreement. See how we're paid and broker vs direct funder.
What should a new broker ask about pay?
- How and when am I paid, and is it in the written agreement?
- Am I paid again on a renewal?
- What happens to my pay if the merchant defaults early?
- Who owns the merchant relationship after funding?
Get every answer into the signed agreement, not just an email. If a term changes later, ask for the change in writing too.
Have a file one funder can't place?
Email it to us with Broker file in the subject line. Call 877-FUND-654 with any question. We call you back, usually the same business day, and we always talk with you before we shop your file.