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Syndication Profit Calculator

Calculate investment, return, and profit for MCA syndication participants.

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What Is MCA Syndication?

MCA syndication is when a lead funder sources a deal and invites other funders or investors to participate by funding a share of the advance. The syndicator underwrites the deal, services collections, and distributes returns to participants proportionally. Participants invest capital and receive their share of the RTR as it is collected. The syndicator earns a spread between the buy rate (what participants receive) and the sell rate (what the merchant pays). Syndication allows smaller ISOs and individual investors to participate in deals they could not fund alone, and allows syndicators to originate larger deals without tying up all their own capital. For brokers, understanding syndication is important because many funders use syndication to fund deals -- and ISOs with enough capital can syndicate their own deals for higher returns.

How to Use This Calculator

Enter the deal amount and participants

Total deal is what the merchant receives. Participants split the capital investment. Your share determines how much you invest and how much return you receive.

Set the sell rate and buy rate

The sell rate is what the merchant pays. The buy rate is what participants receive on their investment. The difference is the syndicator's spread.

Review your investment economics

Your profit equals your share of RTR at the buy rate minus your capital investment. The ROI is your profit divided by your investment. Compare this to other investment options for your capital.

Key Concepts

Syndicator

The lead funder who originates, underwrites, and services the deal. The syndicator takes the spread between buy and sell rates and manages all merchant-facing operations.

Participant

An investor who contributes capital to a syndicated deal. Participants receive returns proportional to their share based on the buy rate, not the sell rate.

Syndication Spread

The difference between the sell rate (merchant pays) and buy rate (participants receive). On a 1.35 sell / 1.25 buy deal, the spread is 0.10, worth $20,000 on a $200K deal.

Expert Insights

Syndication Risk Is Concentrated: Participants in a single syndicated deal have concentrated risk. If the merchant defaults at 40% repayment, every participant loses 60% of their investment. Diversification across 20+ syndicated deals significantly reduces this risk. Never invest more than 5% of your syndication capital in a single deal.

From Broker to Syndicator: The progression from broker (commission only) to syndicator (capital returns + spread) is the biggest earnings jump in MCA. A broker earning 10% commission on $100K keeps $10K. A syndicator investing $100K at a 1.25 buy rate and selling at 1.35 earns $10K in spread plus $25K in capital returns -- $35K total on the same deal. The catch: syndicators bear default risk that brokers do not.

Frequently Asked Questions

Start by participating in syndicated deals from established syndicators. Invest $5K-$25K per deal across 10-20 deals to learn the economics and risk profile. As you build experience and capital, you can graduate to syndicating your own deals. Most syndicators started as brokers or ISO reps who accumulated enough capital and deal flow.

Participants typically earn the buy rate return, which ranges from 1.15 to 1.30 (15-30% return on invested capital). On a 6-8 month deal, this translates to 25-50% annualized. However, defaults reduce actual returns to 10-25% after losses. Diversification across 20+ deals is essential to realize target returns.

Potentially. If syndication interests are offered to passive investors, they may constitute securities under federal and state law. Many syndicators use SEC exemptions (Regulation D, Rule 506(b) or 506(c)) or limit participants to accredited investors. Operating a syndication without proper securities compliance is a significant legal risk. Consult a securities attorney before syndicating.

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.