Mens working with analytics for MCA Industry

Merchant Cash Advance Analytics 101

Running a highly profitable and high-risk business as a Merchant Cash Advance (MCA) originator is not a static job. Instead, it requires constant evaluation and continuous decision-making. 

To help you build your data analytics engine and identify the levers you can pull to change business outcomes, we’ll explore below some basic data points that will be valuable to begin understanding what’s going on in your company.


A static pool is a tranch of Cash Advances originated during a specific period, and, hopefully, with the same set of underwriting rules. These pools are tracked to understand defaults and repayments over time. The data acquired from static pools help predict the experience of collections of future Cash Advances


The Internal Return Rate (IRR) measures the return of a Cash Advance/Vintage. Comparing trends in the IRR helps business leaders to compare the profitability of different MCA’s and may help your Participants decide on investing with you, thus helping grow your volume.


Pacing of Deals

The rhythm of repayments when measured against the terms of your deals/portfolio.

Are your deals beginning to lag? Is that lag to be expected? Should you take a deeper look and see if there’s some common underlying characteristic for those lagging? Do you need to modify your underwriting?

Return on Assets (ROA) and Return on Invested Capital (ROIC)

These usual Business metrics help your participants understand the benefits of Investing in your platforms, and it’s also a measure of how good your underwriting and deal selection is.

Pacing of Deals

Final thoughts

What gets measured gets improved. 

MCAs harnessing the insights provided by their one transaction will manage cash flow and operations more effectively. 

The result is clear: increased sales, conversion rates, and higher customer satisfaction levels.

The previous examples are among the basics you should have for your portfolio.

At Niso, we have developed a robust Business Analysis tool that combines technical knowledge with a deep understanding of the MCA industry, thus providing insights and recommendations to improve your performance and operational metrics to improve your processes.


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