Do I get cash from a refinance?

Sometimes. Any amount left after paying off the old balance and fees comes to you. If the new amount barely exceeds the payoff, the refinance is mainly about lowering the payment.

Does refinancing cost more overall?

Often yes, because the remaining balance moves into a new advance with its own factor rate. Compare total repayment under both paths before deciding.

How much of my current advance should be paid first?

There is no single rule, but a meaningful on-time payment history on the existing advance usually strengthens a refinance request.

What is a payoff letter?

A written statement from your current funder showing the exact amount needed to close the advance as of a certain date. The new funding uses it to pay the balance.

Can MFE refinance an advance from another company?

MFE can review a refinance or buyout of an existing advance from another funder. Bring the payoff letter and your recent bank statements.

MCA Refinance: Lower Payments on an Existing Advance

The short answer

An MCA refinance replaces an existing merchant cash advance with a new one. The new funding first pays off the remaining balance on the old advance, and any amount left over comes to you as net proceeds. It can lower the daily or weekly payment or stretch the term, but it adds new cost, so it helps most when the current payment is the real problem and the business is otherwise healthy.

How a refinance works

You request a payoff letter from your current funder showing the exact remaining balance.
MFE reviews your file, including your bank statements and the payoff figure.
If approved, the new funding pays the old balance directly.
Whatever remains after the payoff and any fee is deposited to you.
You now make one remittance on the new terms.

MFE can review a refinance or buyout of an existing advance. If you carry several, see MCA consolidation, which covers combining positions.

Net proceeds math

The figure most owners overlook is net proceeds. A $60,000 refinance does not mean $60,000 in your account. The formula is simple:

Net proceeds = new funding amount - payoff of the old balance - fees

If the result is small, the refinance is mainly about payment relief, not new cash. That can still be the right choice, but go in knowing which one you are buying.

Check what your business qualifies for

Merchant Fund Express reviews mca refinance requests from $5,000 to $5,000,000. Scores from 500 are considered, and same-day decisions are common on complete files.

Check funding options with Merchant Fund Express

Worked example: easing a $650 daily payment

Illustrative example. These figures are illustrations built on stated assumptions, not offers. Real pricing depends on the file MFE reviews.

Assumptions: a car wash with about $85,000 in monthly deposits has $30,000 left on an advance with a $650 daily remittance. It takes a $60,000 refinance at an assumed 1.30 factor rate, repaid over about 189 business days, with a $1,500 fee.

Item	Amount
New funding amount	$60,000
Payoff of existing advance	$30,000
Fee at funding	$1,500
Net cash received ($60,000 - $30,000 - $1,500)	$28,500
New purchased amount ($60,000 x 1.30)	$78,000
New daily remittance ($78,000 / 189)	$412.70
Old daily remittance	$650

The daily payment falls by about $237 and the owner receives $28,500 in new cash. The tradeoff: the $30,000 that was already owed is now carried inside a new advance with its own cost. The relief is real, and so is the extra expense.

When a refinance helps

The current remittance takes too large a share of deposits and is starving payroll or inventory.
Revenue has grown since the first advance, so the business now supports better terms.
Credit has improved, which can mean better pricing.
You need fresh working capital and want one payment instead of two.

A business that has paid a good portion of its existing advance on time is often in a stronger position to request one.

Funding brings customers. Is your website ready for them?

A refinance frees part of your daily cash flow, and putting some of it into bringing in new customers is often the best use of the breathing room. A current website with clear services and an easy contact or booking path helps rebuild sales. Cheap Cheap Websites builds professional sites from $399, with Website Care at $30/month, so the cost stays predictable.

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When it does not help

If sales are falling and the cause is not fixed, a refinance can buy time but not a solution. Lower payments over a longer term also mean paying for longer. And if your existing advance is close to paid off, it can be cheaper to finish it and then reassess. For background on how positions add up, read MCA stacking explained.

What to prepare

A current payoff letter from your existing funder
3 to 4 months of business bank statements
Owner ID and a voided business check
The short application on the MFE MCA refinance page

Decisions on complete files are often same day, with funding commonly the next business day. Payoff coordination with the old funder can add time, so request the letter early.

Related funding guides

MCA consolidation MCA stacking explained Merchant cash advance How much can my business borrow MCA refinance at Merchant Fund Express

Cheap Cheap Websites builds websites. It does not lend or make funding decisions. Funding is offered by our funding partner, Merchant Fund Express, and every request is subject to its review and approval. Figures on this page are illustrations, not offers. Updated October 15, 2026.

An MCA refinance can reset a payment that is squeezing cash flow