Glossary
MCA default rate
Also called: MCA charge-off rate
One-sentence definition
The MCA default rate is the portion of funded merchant cash advances that fail to repay in full, typically higher than traditional small-business lending and driven primarily by loan stacking, account kiting, and revenue inflation.
Key takeaways
- Stacking is the leading cause of MCA default.
- Account kiting and revenue inflation lead to under-priced holdback levels.
- Better underwriting intelligence reduces default rates by catching these patterns before funding.
Why it matters for MCA underwriting
Reducing the default rate is the single highest-leverage metric for an MCA funder. The patterns Vyaso detects are responsible for a meaningful share of the loss curve.
How Vyaso detects mca default rate
Vyaso surfaces the patterns most associated with default — stacking, kiting, inflation, forgery — before funding occurs.