Growth Capital & Portfolio Financing

Access to capital has historically been one of the biggest challenges facing payments companies. Traditional banks often struggle to understand the underlying value of merchant processing portfolios, residual streams, and recurring payment revenues. As a result, many independent sales organizations (ISOs), payment facilitators, and software platforms with embedded payments are underserved by traditional lenders.

Merchant Portfolios works directly with private credit funds and specialty lenders that understand the payments ecosystem. Through these relationships, we help ISOs, ISVs, and merchant acquirers access flexible financing solutions backed by the predictable cash flows generated by merchant processing portfolios.

Purpose-Built Financing for Payments Businesses

These financing solutions are specifically designed for companies operating in the payments and embedded finance ecosystem. Capital can be used for a variety of strategic initiatives, including:

Funding portfolio acquisitions
Expanding sales teams and merchant distribution channels
Investing in technology or product development for ISV platforms
Strengthening working capital during periods of rapid growth
Recapitalizing or restructuring existing debt

Unlike traditional bank loans, these facilities are underwritten based on payment processing economics — including merchant portfolio performance, residual stability, merchant attrition trends, and processing volume growth.

Leveraging Merchant Portfolio Cash Flows

Merchant portfolios represent one of the most valuable assets in the payments industry. Their recurring revenue streams provide predictable cash flows that can support non-dilutive financing solutions.

Merchant Portfolios has spent decades performing portfolio valuation, diligence, and financial modeling for lenders, acquirers, and private equity investors in the payments space. This experience allows us to structure capital solutions that align with how lenders evaluate risk within the merchant acquiring ecosystem.

By working directly with specialized private credit funds, we streamline the underwriting process and provide clients with greater flexibility on:

Loan structure and terms
Cost of capital
Advance rates and loan-to-value ratios
Speed of execution

Strategic Capital Without Selling Your Portfolio

For many ISOs, ISVs, and payment entrepreneurs, revenue-based and portfolio-backed lending provides a powerful alternative to selling equity or divesting part of their merchant portfolio.

With the right structure, payments companies can access growth capital while maintaining ownership of their business and long-term residual income streams.

If you are exploring growth capital, acquisition financing, or portfolio-backed lending, Merchant Portfolios can help identify the right strategy and connect you with lenders who specialize in the payments industry.