MCA and Specialty Finance Originator Warehouse Checklist
A warehouse lender asks an MCA or specialty finance originator for a corporate deck, loan and payment tapes, a data dictionary, static pool and vintage history, current financial statements and prior years, eligibility criteria, concentration limits, borrowing base reporting, equity support, and a bankruptcy remote SPV with collection account control agreements, a backup servicer and a bad acts guaranty (ABF Journal, Nov 24, 2025; Standard practice). A public MCA warehouse line disclosed a 95 percent advance rate cap, a reserve account, overcollateralization, repurchase obligations and full recourse (deBanked, Jul 21, 2026).
The first call moves faster when the lender can tie your loan tape, payment history, static pool and financial statements to the proposed SPV structure. This checklist covers the diligence file and the terms an MCA warehouse term sheet may address.
Sources: ABF Journal, Nov 24, 2025, PeerSense Capital Data Report
Edward L. Freeman founded PeerSense in January 2020 and is its Founder and Managing Director.
What to have ready before the first call
Organize the file so each requested item can be checked against the tape, the financial statements and the proposed borrowing base.
1.Corporate deck
Describe the originator, its product, funding history, servicing process and proposed facility. Include the amount of originations and the purpose of the warehouse line.
ABF Journal, Nov 24, 2025
2.Loan tape
Provide origination date, amount, outstanding balance and status for each advance. The lender will use these fields to test eligibility and build the borrowing base.
ABF Journal, Nov 24, 2025
3.Payment tape
Provide payment activity at the advance level and reconcile it to the loan tape. Missing payment history can slow or stop diligence.
ABF Journal, Nov 24, 2025
4.Data dictionary
Define every field, value and status used in the loan and payment tapes. Keep the definitions consistent across the current pool and every vintage.
ABF Journal, Nov 24, 2025
5.Static pool and vintage history
Group advances by funding month and show amount funded, collections, renewals, defaults and losses month by month since funding. Reconcile the history to bank statements and financial statements.
Standard practice
6.Financial statements
Include current financial statements and those for prior years. The lender uses them to assess the originator, its equity contribution and corporate financial covenants.
ABF Journal, Nov 24, 2025
7.Eligibility criteria
Set out which receivables qualify for the borrowing base and which are ineligible. MCA examples include a minimum RTR ratio of 1.300x and a performance ratio of at least 80 percent (Morningstar DBRS, Aug 26, 2025).
Morningstar DBRS, Aug 26, 2025
8.Concentration limits
Prepare limits by geography, credit grade and size, along with MCA measures such as originator, merchant state, merchant balance, time in business, industry, collection term, delinquency status, yield and credit grade.
ABF Journal, Nov 24, 2025; Morningstar DBRS, Aug 26, 2025
9.Borrowing base certificate and ongoing reporting
Show eligible receivables, ineligibles and concentration tests on a set schedule. Be ready to deliver servicing and collections reports, performance against triggers and financial statements after closing.
ABF Journal, Nov 24, 2025
10.Equity in the first loss
Model the equity required below the advance rate, including any reserve. At a 95 percent advance rate cap, the originator funds at least 5 percent plus any reserve (deBanked, Jul 21, 2026).
derived from deBanked, Jul 21, 2026
11.SPV and true sale
Document the transfer of advances to a bankruptcy remote SPV owned by the originator and the true sale analysis supporting the structure. The SPV borrows against eligible receivables while the originator funds the remaining equity.
ABF Journal, Nov 24, 2025
12.DACAs on collection accounts
Identify the collection accounts and prepare the deposit account control agreements. These are named term sheet elements for the structure.
ABF Journal, Nov 24, 2025
13.Backup servicer and bad acts guaranty
Have a backup servicer arrangement ready and identify the owners who would provide the bad acts guaranty. Both items may be required in the term sheet.
ABF Journal, Nov 24, 2025
How to format the static pool
Use funding month as the vintage field. For each vintage, show amount funded, collections, renewals, defaults and losses by month since funding. Keep the file at loan level and preserve the original funding date for every advance.
Reconcile the static pool to the loan tape, bank statements and financial statements. Deliver a data dictionary that defines every field, status and calculation. This gives the lender a consistent path from pool history to current borrowing base performance.
MCA and small business warehouse sources by type
| Source type | Distinct sources | Disclosed sizes | Median disclosed size |
|---|---|---|---|
| Banks | 21 | 40.3 million to 260 million | about 114 million |
| Private credit lenders | 16 | 83.3 million to 260 million | about 150 million |
| Other, BDC, asset manager, fintech platform, other | 4 | not disclosed | not disclosed |
| All sources | 41 | 40.3 million to 525 million | about 125 million |
The PeerSense MCA funder registry recorded 41 distinct direct sources providing warehouse lines to 25 MCA and small business originators as of Oct 2, 2026 (PeerSense MCA funder registry, Oct 2, 2026).
What the market data says about facility size
Across all asset classes, PeerSense tracked 407 warehouse facility announcements by 275 originators, of which 342 disclosed size; the median was 180 million dollars and the middle half ranged from 75 million to 370 million dollars (PeerSense tracked financings, Oct 2, 2026). The registry recorded 112 announcements since January 2025, including 67 in 2026 (PeerSense tracked financings, Oct 2, 2026).
Among 43 MCA and revenue based originators funding 10 million dollars a month or more, 17 have a warehouse line on public record, 25 have a revolver, 15 have a securitization and 10 have no financing on record (PeerSense ranked originators, Oct 2, 2026). The MCA registry shows disclosed warehouse sizes from 40.3 million to 525 million dollars, with a median of about 125 million dollars, and no disclosed market wide MCA advance rate range or warehouse spread (PeerSense MCA funder registry, Oct 2, 2026). Prepare for a facility sized to the borrowing base, equity and performance history rather than relying on a market average.
What an MCA warehouse term sheet contains
The term sheet sets the advance rate, collateral tests, reserves, control documents, triggers and support required from the originator and its owners.
- Advance rate
- One MCA warehouse line opened to outside investors carried a 95 percent advance rate cap, with a reserve account, overcollateralization, originator repurchase obligations and full recourse (deBanked, Jul 21, 2026).deBanked, Jul 21, 2026
- Effective advance rate
- The effective advance rate may be lower than the stated rate in the documents (ABF Journal, Nov 24, 2025).ABF Journal, Nov 24, 2025
- Equity in the first loss
- Equity is the portion below the advance rate. At a 95 percent cap, the originator funds at least 5 percent plus any reserve (deBanked, Jul 21, 2026). In a rated MCA securitization, the originator retained about 9.4 percent below the notes (derived from Morningstar DBRS, Aug 26, 2025 and KBRA, May 19, 2026).deBanked, Jul 21, 2026; derived from Morningstar DBRS, Aug 26, 2025 and KBRA, May 19, 2026
- Rated ABS senior class
- One rated MCA securitization had notes equal to about 90.6 percent of the pool, derived from 9.41 percent required overcollateralization (derived from Morningstar DBRS, Aug 26, 2025 and KBRA, May 19, 2026). Its senior class was about 66 percent of the pool (derived from Morningstar DBRS, Aug 26, 2025 and KBRA, May 19, 2026). Another rated MCA securitization also had a senior class about 66 percent of the pool, with initial credit enhancement of 34.15 percent (derived from Morningstar DBRS, Aug 26, 2025 and KBRA, May 19, 2026).derived from Morningstar DBRS, Aug 26, 2025 and KBRA, May 19, 2026
- First institutional line size
- Initial institutional facilities rarely exceed 25 million dollars, even when replacing a 7 million dollar starter line (ABF Journal, Nov 24, 2025). This is market data and does not set a PeerSense size threshold.ABF Journal, Nov 24, 2025
- MCA warehouse sizes in our tracking
- Disclosed sizes run from 40.3 million to 525 million dollars, with a median of about 125 million dollars (PeerSense MCA funder registry, Oct 2, 2026).PeerSense MCA funder registry, Oct 2, 2026
- Pricing
- Warehouse lines price at SOFR plus a spread. No MCA warehouse in the registry discloses its spread, so spreads are not public (PeerSense MCA funder registry, Oct 2, 2026).PeerSense MCA funder registry, Oct 2, 2026
- Eligibility example
- A rated MCA securitization used a minimum RTR ratio of 1.300x and a performance ratio of at least 80 percent (Morningstar DBRS, Aug 26, 2025).Morningstar DBRS, Aug 26, 2025
- Concentration example
- Limits included originator, merchant state, merchant balance, time in business, industry, collection term, delinquency status, yield and credit grade (Morningstar DBRS, Aug 26, 2025).Morningstar DBRS, Aug 26, 2025
- Performance triggers
- Rapid amortization triggers applied if three month yield fell under 30 percent, excess spread fell under 4 percent or delinquency rose over 17 percent (Morningstar DBRS, Aug 26, 2025).Morningstar DBRS, Aug 26, 2025
What can cut availability or stop diligence
Ineligible receivables
Receivables that fail the eligibility criteria do not count toward the borrowing base.
Concentration breach
A breach of a concentration limit caps availability even when total receivables are sufficient.
Incomplete data file
Missing payment tape, data dictionary or static pool history can slow or stop diligence.
Insufficient first loss equity
The originator must fund the first loss below the advance rate, along with any reserve required by the structure.
No backup servicer
The absence of a backup servicer arrangement can prevent the proposed structure from meeting lender requirements.
Trigger level performance
Yield, excess spread or delinquency performance that would trip a trigger can lead to reduced availability or rapid amortization.
Dated public facilities
These public examples show the range of disclosed warehouse and related facility structures.
An MCA warehouse line opened to outside investors included a reserve account, overcollateralization, repurchase obligations and full recourse.
The line carried a 95 percent advance rate cap (deBanked, Jul 21, 2026).
deBanked, Jul 21, 2026
An MCA and small business funder closed a facility package that replaced its warehouse facility.
The 525 million dollar package comprised a 350 million dollar variable funding note facility with a three year revolving period that can grow to 500 million dollars, plus a 175 million dollar asset backed securitization (FinTech Global, Jul 17, 2026).
FinTech Global, Jul 17, 2026
A small business lender secured a credit facility from a bank after an earlier facility from the same bank.
The new facility was 100 million dollars with a 100 million dollar accordion, following a 75 million dollar facility in 2025 (FinTech Global, Jul 13, 2026).
FinTech Global, Jul 13, 2026
A revenue based small business lender secured a debt facility from a bank structured lending division and a private credit firm.
The debt facility was 200 million dollars (company release, Apr 2, 2025).
company release, Apr 2, 2025
Market scale, documented
A quarterly view of large financing activity
PeerSense Capital Data Report, Third Quarter 2026, covers 912 publicly announced financings with $361.32B in disclosed size in the 12 months through September 30, 2026. It is built from public filings and announcements, including press releases, SEC filings, and trade press, and is updated quarterly, with repeat records of one financing counted once.
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