Renewal net cash
A renewal offer is usually quoted as the new amount. What you receive is far less, because the remaining balance on the current advance is paid off first. Here is the arithmetic, and how to judge the cost of the cash you really get.
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Updated October 13, 2026 · Merchant Fund Express
Net cash = new funding amount − remaining balance on the current agreement − fees deducted at funding. If an early payoff discount applies to the old balance, subtract the discounted payoff instead. Net cash is the money that is new to your business; everything else just replaces what you already owed.
The total you will repay is based on the full new amount, not the net cash. That is why a renewal should be judged on the cost of the net cash, not on the headline amount. For background, see renewals and when a renewal is offered.
Assumptions: an $80,000 advance with a total payback of $104,000 (factor 1.30), paid by $800 daily debits. By Friday, November 13, 2026, 78 debits have cleared: $62,400 remitted, 60% of the payback. A renewal of $120,000 funds Monday, November 16, 2026 at a factor of 1.28, with a 3% fee deducted at funding. No early payoff discount applies to the old balance in this example.
| Line | Amount |
|---|---|
| New funding amount | $120,000.00 |
| Remaining balance on current advance ($104,000 − $62,400) | − $41,600.00 |
| Fee deducted at funding (3% of $120,000) | − $3,600.00 |
| Net cash deposited Mon Nov 16, 2026 | $74,800.00 |
| New total payback ($120,000 × 1.28) | $153,600.00 |
| New daily debit, 128 business days | $1,200.00, Tue Nov 17, 2026 to Thu May 20, 2027 |
All figures in worked examples are illustrations of the arithmetic, not offers or quotes. Real terms depend on your file and the funder.
Without the renewal, you would still owe $41,600 at $800 a day, ending in about 52 more business days. With it, you owe $153,600. The extra you agree to repay is $153,600 − $41,600 = $112,000, in exchange for $74,800 of new cash. That is about $1.50 repaid for each new dollar, a higher effective multiple than the 1.28 factor on the offer, because the fee and the refinanced balance both ride inside the new payback.
| View | Numbers | Result |
|---|---|---|
| Headline view | $120,000 at 1.28 | $33,600 cost |
| Net cash view | $74,800 new cash for $112,000 of added repayment | $37,200 cost, about 1.50 per new dollar |
Neither view is a trick; they answer different questions. The net cash view tells you whether the new money is worth what it costs. Also look at the payment: the daily debit goes from $800 to $1,200, a 50% increase on the same revenue.
All figures in worked examples are illustrations of the arithmetic, not offers or quotes. Real terms depend on your file and the funder.
A renewal file is usually read on your recent business bank statements as PDFs, about 3 months, plus the payment history on the current advance. Full financials are generally only requested above $250,000. Put two renewal offers side by side in the offer comparison calculator using net cash, not the headline figure. If you want to see a renewal priced against other options, apply here.
Because the remaining balance on your current agreement and any funding fees are deducted first. Only the difference is deposited.
Yes, if your current agreement has one and it is applied to the renewal payoff. Ask whether it was applied, in writing.
Often. The more of the old balance you have paid, the larger the share of the new amount that is actual new cash.
They overlap. A renewal is usually with the current funder; a refinance can be with a different one. See refinance vs renewal.
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