Net New Cash: Meaning in a Merchant Cash Advance
Net new cash is the fresh money you actually receive on a renewal or consolidation after the old balance is paid off. It's the new funding amount minus what goes to clear the existing advance and any fees.
What does net new cash mean?
When you renew or consolidate, a big part of the new advance often goes straight to paying off what you still owe. What's left over is the net new cash, the part that lands in your account for you to use. An offer can look large at first glance and still hand you only a modest amount of new money once the payoff is subtracted.
Why does net new cash matter to your business?
It's the honest measure of what a renewal does for you. You're taking on a new total payback, often bigger than the old one, in exchange for that net new cash plus a fresh start on the balance. If the net new cash is small compared with the new payment, the renewal mainly resets the clock. That can still make sense, but you want to decide it with the real number in front of you, not the headline amount.
What if net new cash is zero?
Sometimes a consolidation hands you almost no new money. The goal there isn't cash. It's a lower combined payment and one funder instead of several. That can be the right call, but it should be an explicit choice you make, with the new payment and term in writing first.
Where will you see it?
On the renewal offer or the closing statement, usually as a line after the payoff amount. If it isn't shown, ask for it. Any good broker or funder will spell it out.
Which terms are related to net new cash?
The full list is in the glossary. Owners ask about this in Is an MCA factor rate monthly or for the whole advance?.
A term on your offer you don't recognize?
Send us the line and we'll tell you what it means. Call 877-FUND-654 with any question. We call you back, usually the same business day, and we always talk with you before we shop your file.