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Split Funding Calculator

Structure multi-funder deals when a single funder cannot cover the full merchant need.

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What Is Split Funding?

Split funding is the practice of dividing a merchant's capital need across multiple funders when no single funder can or will provide the full amount. A merchant needing $250K may receive $125K from Funder A and $125K from Funder B, each with their own factor rate, daily payment, and UCC filing. Split funding is distinct from stacking -- in a split, the positions are coordinated and placed simultaneously, whereas stacking occurs sequentially. The broker manages the relationship between funders, ensures neither exceeds the merchant's daily payment capacity, and earns commission from each funder independently. Split deals are more complex to arrange but solve the common problem of merchants needing more capital than any single funder will approve.

How to Use This Calculator

Enter the total funding need

This is the full amount the merchant requires. The calculator will divide it across funders based on the constraints you set.

Set the maximum single funder share

This caps how much any one funder provides. A 50% cap on a $250K need means no funder provides more than $125K. This distributes risk and may allow working with funders who have lower individual deal caps.

Select the number of funders

Two funders is most common and simplest to manage. Three or four funders is possible but requires careful daily payment coordination to avoid over-burdening the merchant.

Key Concepts

Split Funding

Simultaneously placing a merchant with multiple funders to meet a capital need that exceeds any single funder's capacity or appetite. Each funder takes a proportional position.

Position Coordination

Ensuring all funders in a split deal are aware of each other, agree to the total daily payment structure, and file UCCs in an agreed priority order. Lack of coordination leads to conflicts.

Aggregate Daily Burden

The combined daily payment across all funders in a split deal. This must stay within the merchant's affordability threshold (typically under 20-25% of daily revenue).

Expert Insights

Split vs. Syndication: Split funding and syndication achieve similar goals but work differently. In a split, each funder underwrites and funds independently. In a syndication, one lead funder underwrites and sources participation from co-funders. Syndication is simpler for the broker (one submission) but requires a funder with a syndication desk. Splits give you more control over funder selection and commission negotiation.

The Double Commission Opportunity: On a $250K split with two funders, you earn commission from both -- typically 8-10% from each funder. That is $20K-$25K in total commission versus the $15K-$20K you might earn from a single funder willing to do the full $250K. Split deals are more work but often more profitable per deal.

Frequently Asked Questions

Most funders are accustomed to split deals and will cooperate if informed upfront. Transparency is critical -- disclose all positions to all funders at submission. Funders who discover undisclosed concurrent positions will decline or clawback.

In a coordinated split, funders negotiate UCC priority. The funder providing the larger share typically takes first position. Some funders require first position and will decline second. Address position priority during underwriting, not after.

The primary risk is aggregate over-leverage -- multiple funders each underwriting independently may collectively approve more than the merchant can service. The broker must manage the total daily burden. Secondary risks include timing delays (one funder funds faster than the other) and conflicting contract terms.

Results are estimates for educational purposes only. Actual amounts may vary based on your specific financial situation, market conditions, and other factors. This calculator does not constitute financial advice.