Merchant Cash Advance Renewals and Add-Ons
A renewal pays off what's left on your advance and gives you the rest as new cash.
A $30,000 renewal at a 1.35 factor that pays off a $10,000 balance puts about $20,000 of new cash in your account, and you repay $40,500 on the full $30,000. Many funders let you renew once part of the balance is paid. A renewal replaces the old balance, while an add-on or a second advance sits beside it, so compare the new total payback with the new cash that actually reaches you.
Business funding for owners with business bank deposits. Not personal or payday cash.
How does a renewal compare with a second advance?
A renewal replaces the old balance. A second advance sits beside it. The table shows the difference.
| Option | What happens to the old balance | New cash you receive | What to compare |
|---|---|---|---|
| Renewal or add on | Paid off from the new advance | New amount minus the payoff | New total payback against the new cash |
| Second position from another funder | Keeps running | The full new amount, minus fees | The combined payments of both advances |
| Wait until the first ends | Paid down as usual | None | Nothing new |
The Renewal guide walks through the math in more detail.
Example. A $40,000 renewal at a 1.30 factor, with $15,000 still owed on the old advance, puts about $25,000 of new cash in your account before fees. You repay $52,000 on the full $40,000, so the renewal costs $12,000 for $25,000 of new money, about $0.48 per new dollar. Run your own numbers in the MCA renewal calculator.
What should you check in a renewal offer?
Check the payoff figure, the fees, and how much new cash is left.
The payoff figure
The funder shows what you still owe. Ask whether any discount applies for paying early.
Fees taken from the new amount
Some fees come out before the cash reaches you. Subtract them to see the real new cash. Disclosure rules for an offer vary by state; Missouri's commercial financing disclosure law is one example (see Sources).
Payments size and term after renewing
A renewal resets the payment and the term. Check whether the payment goes up and for how long.
Renewing again and again
Frequent renewals can mean paying new costs on money you already had. Track the total across each one.
When waiting is cheaper
If the old advance ends soon, waiting may cost less than renewing now.
We're not a funder.
We don't fund deals ourselves. We shop yours with funders who do, so you see more than one offer.
Only funders that fit.
Your file goes to funders that work with your industry and your deal size. Nobody else sees it.
You make the call.
Every offer comes to you in writing. Nothing happens until you pick one.
- What it costs to apply
- Nothing. Applying costs you nothing, and Afterfirst MCA charges you no fee.
- Credit
- Ask us how each funder checks credit before you agree to anything.
- Speed
- We call you back and talk with you before your file goes to any funder.
- Offers
- Every offer shows the total payback, the payment amount, how often it comes out, and the term.
FAQ
What does a renewal really cost?
Take the new total payback and compare it with the new cash, not the full new amount. Fees taken at funding lower the new cash. Ask for each figure in writing.
Does a renewal affect my credit?
Ask how any credit review works before you sign. A renewal is a new contract, so ask again each time.
When can I renew an advance?
Each funder sets its own point, often after part of the balance is paid. No timing is promised. The offer shows the payoff on that date.
Is a renewal better than a second advance?
It depends on the numbers. A renewal keeps one payment, while a second advance adds one. Compare the new cash and total payback for each.
Sources
- Missouri Revised Statutes section 427.300: Missouri's commercial financing disclosure law, the example cited under fees taken from a renewal amount.
Illustrative example case
Illustrative example, not a real client. Figures are made up to show how this product can look.
- Illustrative example, not a real client Sample file. A business with steady deposits sends one application. Afterfirst reviews it, shops funders that fit, and shows offers side by side. The owner picks one or walks away. Funding follows once approved and signed.
What happens after you apply
Apply
Send one free application online or by phone. A person on our team reads it before any funder sees it.
Review
We call you, to fill gaps and confirm bank statements.
Offers compared
We shop your file with funders that fit and show every offer side by side: payback, payment, and term.
You choose
Pick an offer or walk away. Nothing is final until you sign the funder's contract.
Funding
Once you sign, the funder sends the money straight to your business bank account.
Send one file.
See what fits.
Call 877-FUND-654 with questions.