Renewing or Paying Off an Advance
A bigger renewal is not more cash in your account. Here is the math on what you actually keep, and what to ask your funder before you sign.
The question in one paragraph
A renewal usually pays the balance you still owe on the old advance out of the new funds. So the cash you receive is the new amount, minus the payoff, minus fees. The headline number on the offer is not the number that reaches your bank account.
A worked example in dollars
Illustrative only, not an offer. Say you owe $18,000 on an existing advance and you are offered a new $50,000 advance with a 1.35 factor rate over 40 weeks and a 3% origination fee:
Notice the $18,000 payoff is repaid inside the new $67,500. You pay the factor-rate cost on money that only went to settle the old balance. A factor rate is a fixed multiplier, not an annual percentage rate, so compare offers in dollars.
Want to try your own figures? The cost calculator shows the same arithmetic line by line.
How to ask for your payoff
- Request a written payoff figure from your current funder, dated, with the amount needed to close the advance.
- Ask for the early-payoff terms. Some funders discount the remaining balance when it is paid early. Many do not.
- Ask what fees apply on the new advance and whether they come out of the funds before they reach you.
Who this is for, and not for
| You are | What this page means for you |
|---|---|
| A returning Fundangle client | Your client portal shows a modeled payoff and renewal eligibility. It is an estimate, not a payoff letter. |
| Weighing a switch to another provider | Math only. Ask your funder for a written payoff figure. Fundangle does not pay off an advance another funder placed. |
| Carrying several open advances | Read how to consolidate multiple MCAs and reverse consolidation first. |
Cautions
- Renewing repeatedly raises total cost. Each renewal adds a new factor-rate cost on the full new amount.
- A bigger headline amount is not more usable cash. Subtract the payoff and fees before you compare.
- Do not stack to cover a payoff. Taking a new advance only to settle the old one, then another behind it, compounds cost and leaves less usable cash each time.
- Eligibility is not approval. Any renewal is set by the funding partner after review.
For how the multiplier works, see how factor rates work. If you are weighing a position behind an existing one, see second-position funding.
Check the math first
Returning clients can sign in to see their modeled payoff. Everyone else can run the numbers in the cost calculator, then see options.
Open the cost calculatorCommon questions
Does a renewal give me the full new amount in cash?
No. A renewal usually pays the remaining balance on the old advance out of the new funds, and fees come out too. Cash you receive is the new amount minus the payoff, minus fees.
How do I find my payoff figure?
Ask your current funder for a written payoff figure and their early-payoff terms. Some funders discount the remaining balance when it is paid early, and many do not, so get the number in writing before you compare offers.
Does renewing repeatedly cost more?
Often, yes. Each renewal adds a new factor-rate cost on the full new amount, including the part that only pays off the old balance. A bigger headline amount is not more usable cash.
Can Fundangle pay off an advance another funder placed?
Fundangle does not pay off another funder's advance. This page explains the math only. If you are already a Fundangle client, your portal shows a modeled payoff estimate, which is an estimate and not a payoff letter.