Syndication Profit Calculator
Calculate investment, return, and profit for MCA syndication participants.
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
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.
Run These Numbers Too
Default Rate Impact Calculator
Model how merchant default rates affect portfolio yield, losses, and net returns.
Risk-Adjusted Return Calculator
Calculate expected return on MCA deals adjusted for default probability and recovery rates.
Portfolio Yield Calculator
Calculate actual and annualized yield on your MCA investment portfolio.
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