Renewals
A renewal is a new advance that often pays off the remaining balance on an existing one. Part of the new amount goes to that payoff, so the cash you actually receive can be much smaller than the advance amount. Ask for the payoff figure, the net new cash, and the new total payback in writing.
Stacking
Stacking means taking an additional advance while one or more are still being repaid. Each advance has its own payments, so combined daily debits can rise quickly. Many agreements restrict additional financing; read those terms before accepting another offer.
- Add every existing daily or weekly payment together.
- Compare the combined total with your slowest normal week.
- Check whether an existing agreement prohibits new financing.
Early payoff
Because an MCA's total payback is usually fixed at the start, paying early does not automatically reduce the cost. Some providers offer a discount for early payoff; others do not. Ask whether a discount exists and get the exact payoff figure in writing.
Get help when payments are hard to carry
If combined payments are straining the business, talk with a qualified attorney or financial advisor before signing anything new. Be cautious of offers that promise to make obligations disappear.