The short answer
At a glance
| What it is | A new advance that pays off the remaining balance of an existing advance |
|---|---|
| Typical amounts | Varies with revenue and remaining balance; MFE reviews $5,000 to $5,000,000 |
| Revenue guideline | MCA guidelines commonly start around $7,500 a month in revenue |
| Time in business | Often 3+ months for an MCA; a payment history on the current advance helps |
| Credit | Scores from 500 are considered; stronger credit usually means better offers |
| Key document | A current payoff letter from your existing funder, plus 3 to 4 months of bank statements |
| Speed | Same-day decisions are common on complete files; funding often the next business day, never promised |
| Cost structure | New factor rate on the new amount; the payoff comes out of the proceeds |
| Best for | Owners with steady deposits who need more room or one simpler payment |
| Avoid if | The only goal is a lower payment and you have not checked the total payback |
Before you apply: checklist
- Request a written payoff letter from your current funder and note its expiration date
- Write down how much you have paid so far and how much remains
- Pull your last 3 to 4 months of business bank statements
- Check whether your current funder offers an early payoff discount
- Decide how much new cash you actually need after the payoff
- Compare total payback of the new deal, not only the daily or weekly payment
- List every open advance you have, including small ones
- Have your ID and a voided business check ready
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 ExpressWhen an MCA refinance helps
A refinance is a tool, not a rescue. It tends to help in a few clear situations:
- Your revenue has grown. Deposits are higher than when you took the first advance, so the business may support a larger, cleaner position.
- You need more cash. A refinance can fold the old balance and the new money into one advance instead of adding a second position on top.
- You are close to paying off. Many funders look at refinance requests once a good share of the original balance has been paid.
It tends not to help when deposits are falling and the new deal simply stretches the same problem over more weeks. Read the restaurant and construction versions in our guides on restaurant MCA refinance and construction MCA refinance.
Renewal vs refinance, and the payoff letter
A renewal usually means the same funder offers you a new advance before the old one is finished. A refinance can come from the same funder or a different one, and the new funder pays off the old balance directly.
Either way, the payoff letter is the key document. It states the exact amount needed to close the current advance, where to send it, and the date it expires. Ask whether it reflects any early payoff discount. If the letter expires before funding, request a fresh one so the numbers match.
The cash you receive is the new funded amount minus the payoff and any stated fees. That net number is what you should plan around.
Illustrative example: total payback math
| Item | Amount |
|---|---|
| Original advance funded | $40,000 |
| Original factor rate | 1.40 |
| Original total payback ($40,000 x 1.40) | $56,000 |
| Paid so far | $30,000 |
| Remaining balance on payoff letter | $26,000 |
| New advance funded | $60,000 |
| New factor rate | 1.35 |
| New total payback ($60,000 x 1.35) | $81,000 |
| Net cash to business ($60,000 minus $26,000) | $34,000 |
| Weekly payment over 52 weeks ($81,000 / 52) | $1,557.69 |
Assumptions: no early payoff discount, no other fees, a 52-week term. The cost of the new money is $81,000 minus $60,000, or $21,000, and you are paying it to receive $34,000 in fresh cash plus closing the old balance.
These figures are illustrations, not offers. Real pricing and terms depend on your file.
Funding brings customers. Is your website ready for them?
Funding usually pays for growth: more stock, staff, equipment or marketing. Make sure the customers that growth brings find a website that explains what you do and makes it easy to call, book or buy. Cheap Cheap Websites builds professional sites from $399, with Website Care at $30/month.
Common mistakes
- Judging the deal only by a lower weekly payment.
- Using an expired payoff letter, so the payoff number is wrong at funding.
- Forgetting a second small advance that still debits your account.
- Taking more cash than the business needs, which raises total payback.
- Refinancing again and again without deposits growing.
- Not reading how fees are deducted from the proceeds.
How Merchant Fund Express handles this
Merchant Fund Express can review a refinance or a buyout of an existing advance. Bring the payoff letter and recent statements, and the review looks at your deposits, your current payments and how many positions are open. If several positions are open, a refinance is usually the better path than adding another advance. See the MFE MCA refinance page for details, then apply with Merchant Fund Express when your file is ready. Service is available in English and Spanish.
Owners with three or more positions should also read the consolidation and buyout cheat sheet.
Related
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 16, 2026.