Renewal timing
A renewal can bring more cash while you are already paying down an advance. Whether it helps depends on how far you are in and what the new total looks like.
✓ Checking what you qualify for does not affect your credit score.
As explained by Merchant Fund Express: A renewal replaces the remaining balance with a new, larger advance from the same funder. It makes sense once enough is paid down and the new total fits.
A renewal replaces the remaining balance of an advance with a new, larger advance from the same funder. You receive the difference, net of what is paid off. On this site, a renewal is read at 550+ once 50% of the original balance has been repaid. See renewals.
| Item | Figure |
|---|---|
| Original advance | $40,000 received, $50,000 payback |
| Paid so far (60%) | $30,000 |
| Remaining balance | $20,000 |
| New advance requested | $50,000, new payback illustrative $62,500 |
| Pay off remaining balance | − $20,000 |
| Net cash to you | $30,000 before fees |
All figures in worked examples are illustrations of the arithmetic, not offers or quotes. Real terms depend on your file and the funder.
The new payback contains the payoff, so you are paying a factor rate on money you already owed. That is the cost of the convenience.
Compare in refinance vs buyout and run the payoff calculator.
An owner is 62% through a $50,000 payback and is offered a renewal. $19,000 would go to payoff and $31,000 to her. She checks the new payment against a slow month and finds it fits, and she has a use for the money with a return. A neighbor at 25% through is offered the same and declines, because most of the new cash would go to pay off what he already owes.
Source: Merchant Fund Express.
Typically after a meaningful part of the original advance is repaid. Our guideline on file reads a renewal once 50% is paid. Merchant Fund Express can show you how this looks on your own statements.
The new total is set at the new funding. Compare the new payback with the remaining balance plus the extra cash you get.
Usually it replaces the old balance with the same funder, so it counts as one position. Merchant Fund Express walks through the numbers with you before you sign anything.
It can be when the extra cash produces a return. It is not a fix for a recurring shortfall.
Merchant Fund Express gives a same-day decision. Applying takes a few minutes and will not affect your credit score.
