[OSF Funding]

Is there any current documented research on the national default rates of MCA's?

I realize this is a broad question because there are many factors that can lead to a merchant defaulting, but any idea where to find some solid statistics?

[channin19]

No two MCA's are alike.

[isaacdstern]

I think before you an ask that question you need to define what a default is...I have literally heard 20 different definitions

[channin19]

I think before you an ask that question you need to define what a default is...I have literally heard 20 different definitions

The collection process outlined in the DBRS bond offering reports was very enlightening.

[Zach]

6-15% depending on the paper

[Funder Mark]

6 is probably the low end, 15 I would say is at the higher end, you also have to look at which companies are having them. If Ondeck or CAN is having a 15% default rate, that is a very different picture then Pearl or Yellowstone having those numbers.

[aredmond]

If by default you mean that A) the deal goes south completely or B) they consistently miss payments and get put into collections, it is around 14-17% for the A paper lenders.

If by default you mean the deal dying completely before the initial funded amount is retrieved(not the profit), it is about 9% for A paper lenders.

[ChrisMusto]

You can check this source: Merchant Processing Resources which is slightly dated, but still relevant. ODC states its default rate at apx 5% as of 2013.