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Most lenders won’t fund a merchant who has defaulted on an MCA before. Funds prior defaults records which of your lenders will. NextLevel MCA uses it to keep defaulted merchants away from lenders that don’t take them.

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The lender setting

Funds prior defaults is a switch in the Credit & risk group on a lender’s Criteria tab (click Edit criteria, then Save criteria). You need the Edit Lenders permission.
  • On: the lender takes merchants with a prior MCA default.
  • Off (the default): a deal that counts as defaulted never matches this lender.

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When a deal counts as defaulted

A deal counts as having a prior default in either of these cases:
  1. A rep marks it. On the deal’s Submissions tab, open the Matching inputs card and turn on Prior MCA default. Only your team sees this card; nothing in it is asked of the merchant.
  2. DataMerch reports it. If your workspace has DataMerch connected, the business’s most recent successful DataMerch check is used. Only a note in a Default category counts. Slow-pay or other notes don’t.
Once anyone on your team has flipped Prior MCA default on a deal, that switch decides, and DataMerch is no longer consulted for that deal. Turning the switch off tells NextLevel MCA the merchant has no prior default, even if DataMerch reported one. The switch doesn’t show a DataMerch result, so check the DataMerch card on the deal’s Underwrite tab before you change it.

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What happens in matching

  • A disqualified lender scores 0 and shows a red Disqualified pill on the deal’s Submissions tab. It drops off the Ranked list into the Disqualified section. You can still tick it and submit if you know better.
  • Turning the setting on doesn’t raise a lender’s score. It only stops the lender being ruled out.
  • Click the lender’s score ring (Why this score?) to see the Prior MCA default check. The Deal column says marked on the deal or DataMerch: followed by the note’s category.

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Funds reversals works the same way

The Funds reversals switch sits next to it on the lender. It applies when a rep turns on ACH reversals in the deal’s Matching inputs. DataMerch doesn’t set this one.

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Common problems

DataMerch reported a default for this business. Check the DataMerch card on the Underwrite tab. If the note is wrong or about a different merchant, turn Prior MCA default on and then off: the deal is then treated as having no prior default.
Nobody has marked the deal, and either DataMerch isn’t connected, hasn’t checked this business, or found no Default note. Turn on Prior MCA default in Matching inputs.
On the deal’s Submissions tab, on the right above the submissions table. The card starts collapsed; click the arrow to open it.