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Original research · 2026

State of MCA debt, 2026

What merchant cash advances actually cost, how owners stack them, and what settlement really recovers, from 11,400 verified owner reviews, 480 contracts and 212 settlement letters. Every number on this page is free to cite with attribution and a link.

By Jordan MercerLegal review Alana Reyes, Esq.Published Press inquiries

All figures illustrative pending real data. Do not present these numbers as findings until the live dataset (11,400 verified reviews, 480 contracts, 212 settlement letters) replaces them.

Headline numbers

1.34
Median factor rate · 480 contracts, 2025 to 2026
89%
Median estimated APR · at the median 6-month term, repaid daily
4 of 38
Funders that disclose any APR · on their own term sheets
11 of 38
Funders using a confession of judgment · in at least some state contracts
71%
Owners with 2+ advances at intake · of those contacting a relief firm
52%
Median settlement, % of balance · 212 redacted settlement letters

The cost nobody quotes

Across 480 contracts, the median factor rate was 1.34 on a median term of 6 months. Quoted as “34%,” repaid daily, that is a median estimated APR of 89%. Only 4 of 38 funders printed any annualized figure on their paperwork.

Median estimated APR by term, 480 contracts

Estimated APR accounts for daily repayment (average outstanding balance about half the advance). Bars scaled to 160%.

Stacking is the default, not the exception

Positions held when owners sought help

1 position
29%
2 positions
33%
3 positions
22%
4 or more
16%

Among owners who contacted a relief firm, 71% held two or more advances and 38% held three or more. The median stack: 2.7 positions, $86,000 combined balance, and daily debits equal to 9.4% of monthly revenue, per business day.

Restaurants, trucking and construction account for 58% of stacked cases. The pattern is seasonal or volatile revenue meeting a fixed daily debit.

What settlement recovers

52%
Median settlement, as % of balance · 212 redacted settlement letters, 2025 to 2026
35–70%
Full observed range · stacked and defaulted positions settle lower
19 days
Median time to lowered or paused debits · top-quartile firms; bottom quartile: 51 days
7.2 mo
Median time to resolve all positions · litigated stacks run longer

Methodology and use

Sources: 11,400 Zogby-verified owner reviews (each verified against a funding or settlement document), 480 MCA contracts and term sheets collected from owners and funders, and 212 redacted settlement letters, gathered January 2025 through August 2026. APR estimates use stated term and payment cadence with average outstanding balance at half the advance. Figures on this prototype are illustrative pending the live dataset.

Cite freely. “Source: Zogby, State of MCA Debt 2026” with a link. For the underlying tables or interviews: press@zogby.com.