Glossary
Holdback percentage
Also called: MCA holdback, remit percentage
One-sentence definition
The holdback percentage is the portion of a merchant's daily or weekly receivables that the funder withholds toward repayment of the merchant cash advance.
Key takeaways
- Common range: 8–20% of daily card or ACH receivables.
- Set by the funder based on file risk and industry.
- Stacked merchants face combined holdback that can exceed sustainable levels.
Why it matters for MCA underwriting
Holdback affordability is a primary input to underwriting. Inflated apparent revenue leads to holdback levels the merchant cannot actually sustain. The funder defaults on the file shortly after funding.
How Vyaso detects holdback percentage
Vyaso's adjusted-revenue figure is a more conservative basis for sizing holdback than gross deposits.