SQL (Sales Qualified Lead)
An SQL (Sales Qualified Lead) is a prospect that a sales rep has personally verified through discovery conversation to meet qualification criteria — confirming product fit, decision authority, funding need, and timing — and is ready to advance into the active sales pipeline.
Why This Matters
SQL acceptance is the formal handoff from prospecting to active selling. The qualification framework (BANT, MEDDIC, GPCT) varies by sales methodology, but the function is identical: confirm this prospect can and will buy in a reasonable timeframe. For MCA, SQL criteria typically include: verified business existence, monthly revenue above floor, time in business above floor, expressed funding need, owner availability, and no obvious disqualifiers (recent bankruptcy, restricted industry). SQL conversion to funded is the metric that drives sales rep performance evaluation.
Frequently Asked Questions
Frequently Asked Questions
What MCA-specific SQL criteria should I enforce?
Verified US business, monthly revenue ≥ $15K-$25K (depending on funder minimums), 6+ months in business, business bank account active, owner has expressed funding need or interest, no immediate disqualifying factor (active bankruptcy, restricted vertical, sub-540 personal credit if applicable to product).
What SQL-to-funded conversion rate is healthy?
20-40% SQL-to-funded for first-position MCA. 10-20% for second-position or higher-risk programs. Below 15% suggests SQL criteria are too loose (qualifying unfit prospects) or downstream sales execution is weak (good prospects falling out at stipulations).