# MCA refinance cheat sheet: replace an advance without losing track of the cost

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Updated October 16, 2026. Funding offered by Merchant Fund Express (https://merchantfundexpress.com/mca-refinance/); Cheap Cheap Websites builds websites and does not lend.

## The short answer
An MCA refinance replaces the balance you still owe on a merchant cash advance with a new advance, usually paying the old one off directly and sending you any remaining cash. It can make sense when your revenue has grown, when one position has become hard to carry, or when you need more cash and would otherwise stack a second advance. Always compare the total payback of the new deal against what you still owe, not only the new payment.

## 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

## When 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
Illustrative example 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.

## 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 .

## Frequently asked questions
**Can I refinance a merchant cash advance with a different funder?** Yes, it is common. The new funder uses your payoff letter to pay the old balance directly, and you receive the remaining proceeds. Make sure the payoff letter is current and confirm whether your existing funder offers an early payoff discount.

**Will a refinance lower my total cost?** Not automatically. A refinance often lowers the payment by spreading a balance over a new term, but the total payback can be higher. Compare what you still owe today against the full payback of the new deal, then decide if the extra cash is worth it.

**How far into my advance do I need to be to refinance?** It varies by funder and by file. Many funders prefer to see that a meaningful share of the original balance has been paid and that payments have cleared on time. Your recent statements show this history.

**What is the difference between a renewal and a refinance?** A renewal is a new advance from your current funder before the old one finishes. A refinance replaces the old balance with a new advance, which may come from a different funder. Both pay off the old balance from the new proceeds.

**Does a refinance hurt my credit?** Effects vary by funder and by how the funding is reported. Most MCA reviews focus on bank deposits and existing positions more than credit, and MFE considers scores from 500. Ask how the review checks credit before you apply.

Apply with Merchant Fund Express: https://merchantfundexpress.com/current-application.html?utm_source=cheat-sheet&utm_campaign=mca-refinance