When does an MCA become eligible for renewal?

Most funders set the eligibility threshold at 50% paid down on the active advance, with a clean payment history (no NSFs in the prior 30–60 days). A few aggressive funders accept renewals at 40% paid down for top-tier paper; conservative funders wait until 60–70% paid down. The broker portal flags eligibility the moment the threshold is crossed.

What is the 'rollover' or 'double-dip' on an MCA renewal?

When you renew, the funder pays off your remaining balance from the new advance and gives you the difference. The remaining balance is rolled into the new payback at the new factor rate — meaning you pay interest on interest. On a 50%-paid-down position, the rolled portion typically adds 18–35% to the effective cost of capital on those rolled dollars versus letting the original deal run to term.

Does my broker make money on every renewal?

Yes. Renewal commissions are typically 80–100% of new-deal commissions — the broker gets paid a full commission each time you renew. Most ISO contracts pay 8–15 points of the funded amount on the renewal. This is why the renewal call comes so reliably the moment you hit eligibility.

Should I renew at 50% paid down or let the deal run to term?

Almost always let it run to term, unless you have a specific high-ROI use of additional funds that cannot wait. The math of the rollover is bad for the merchant in 90%+ of cases. Even if you want to refinance, paying off the original deal first (taking the prepayment discount if available) and then taking a fresh advance is usually cheaper than rolling.

Can I renew with a different funder than my original?

Yes — this is called 'refinancing out' or 'taking out' the original position. A new funder approves the deal, pays off the original, and you have a single new position. The math is often (not always) better than rolling with the original funder, because you escape the original funder's rollover pricing model. The catch: not every funder will refinance an active position, and approval is harder.

MCA funder ISO broker portal renewal process — the seven-step playbook brokers run on your file

The renewal call is not random. It is triggered by an automated eligibility flag, scored by an internal model, and executed through a seven-step portal workflow designed to maximize the broker's commission. Here is exactly how it works and where merchants overpay.

Why renewals matter so much to brokers

A funded MCA is not the end of a relationship for the broker — it is the beginning of a 6–18 month countdown to the renewal commission. Renewal commissions are paid at roughly the same rate as new-deal commissions (8–15 points of the funded amount). Across the broker's book, renewals make up 40–60% of total annual commission revenue. Some high-volume ISOs do more renewal volume than new-deal volume.

This is why the renewal call is so reliable. The moment your file crosses the eligibility threshold in the broker portal, an automated CRM task fires and you get a phone call, email, and often SMS in rapid succession. The pitch is consistent — "we can get you more money now, you've been great" — and the math, almost always, is bad for the merchant on the rolled portion.

Understanding the seven-step workflow gives you a structured framework for evaluating the renewal pitch when it comes. It also gives you the language to push back, request alternatives, or refinance out to a different funder where the math is cleaner.

Step 1: Eligibility flag fires

The servicing dashboard runs a weekly batch job that scores every active merchant on renewal eligibility. The inputs:

Percent paid down (50%+ at most A-paper funders; 40%+ at aggressive funders; 60–70% at conservative funders)
On-time payment streak (typically 30–60 consecutive cleared ACH days required)
NSF count rolling 30 days (must be zero or near-zero)
Deposit volume trend (flat or up)
Stacking detection clean (no new MCA appearing in bank feed)
Owner FICO trend (flat or up since underwriting)

When the inputs cross threshold, the file's renewal flag flips to "eligible now" and an automated task lands in the broker's CRM. The broker is notified by dashboard alert and often by email.

Step 2: Internal renewal scoring

Not every eligible file gets the same treatment. The broker's CRM (and often the funder's servicing system separately) scores the merchant on renewal attractiveness:

Paper grade trend. Is the merchant the same paper grade as at original funding, or has it improved or deteriorated?
Funded amount trend. Larger renewal candidates get faster broker attention.
Communication responsiveness history. Merchants who answered the phone last time are called first.
Renewal-rate prediction. Some brokers run a propensity-to-renew model on their merchant book.

High-scored files get the senior broker on the phone within 24 hours. Lower-scored files get a junior agent within 7 days. Bottom-quartile files get an automated email drip and a call cadence every 30 days.

Step 3: The renewal pitch call

The script is consistent across the industry. The broker opens with a relationship frame ("hey, just checking in — you've been great to work with"), pivots to the renewal hook ("you're at 50% paid down, you've earned a renewal, we can get you more working capital right now"), and frames the outcome as the merchant's choice ("we can do anywhere from $25K up to $80K — what would help the business most?").

What the pitch does not include:

The fact that the broker earns a full commission on the renewal
The fact that your remaining balance will be rolled at the new factor rate (rollover)
An honest comparison of the effective cost of the rolled portion vs running the original deal to term
A discussion of whether you actually need additional capital, or whether the business is stable enough that paying down debt is the better move

Step 4: New term sheet generation (with rollover math)

If the merchant signals interest, the broker generates a renewal term sheet through the portal. The math typically looks like this:

Remaining balance on original advance: Say $25,000 (you originally took $50K at 1.30 = $65K payback, you've paid $40K, $25K remains).
Renewal funded amount: $50,000 (the merchant requests another $50K of working capital).
Renewal factor: 1.32 (slightly tighter than original because of clean payment history).
Renewal payback: Total new advance is $50,000 (new money) + $25,000 (rolled balance) = $75,000 funded amount on paper. Payback at 1.32 = $99,000.
Net cash to merchant: $75,000 funded − $25,000 paid to original position = $50,000 net cash in pocket.
Effective cost to merchant: $99,000 new payback − $25,000 original balance you would have paid anyway = $74,000 to receive $50,000 in net cash. That's a 1.48 effective factor on the $50,000 of new money — meaningfully worse than 1.32.

This is the "double-dip" or "rollover" cost. The broker's term sheet shows 1.32. The effective rate on net new cash is 1.48. The merchant sees the smaller number on the paper.

Step 5: Sign and re-stipulate

If the merchant signs the renewal term sheet, the workflow mirrors a new deal — merchant agreement via DocuSign, stipulations list posted in the portal (often abbreviated for an existing relationship), funding call, ACH wire. Most renewals fund in 1–3 business days versus 2–7 days for a fresh new deal because much of the underwriting was already done.

Step 6: Old position closed, new position opened

On funding day, the renewal funder issues a payoff wire to the original position (which, in same-funder renewals, is just an internal accounting entry). The original deal record is closed in the portal; the new deal record is opened; servicing begins on the new daily ACH schedule. The cycle restarts.

Step 7: The next eligibility countdown begins

Six months later, the eligibility flag fires again, and the workflow repeats. Some merchants end up on their fourth or fifth consecutive renewal with the same broker. Each renewal compounds the rollover cost. By the third or fourth renewal, the merchant is paying meaningfully more for capital than they would if they had let deals run to term and re-financed cleanly between them.

The three places merchants overpay

1. The rollover itself

As shown above, rolling a 50%-paid-down balance into a new advance at a new factor adds 15–35% to the effective cost of capital on the rolled portion versus running the original to term. This is the single biggest cost. Our $5,000 renewal mistake walkthrough shows a worked example for restaurants where the rollover cost six months of additional working capital.

2. The lack of prepayment-discount capture

Some funders offer prepayment discounts — pay off in months 1–3 and save 25–40% of the unearned fee; months 4–6 and save 10–20%; months 7–9 and save 5–10%. The broker almost never frames the renewal as "you could also pay off cheaply right now and skip the rollover." Our prepayment discount guide covers which funders publish discounts.

3. The implicit broker fee on the new deal

The broker takes a full new-deal commission on the renewal. On a $75,000 funded renewal at a 10-point broker fee, that's $7,500 of commission embedded in the cost. The merchant pays it via the higher factor. Going direct on the refinance — or using a transparent match platform — saves most of that.

What to do when the renewal call comes

Ask for the rollover math. Specifically, ask: "What is the effective factor rate on just the new cash I am taking out, after rolling the remaining balance?" A reputable broker will calculate it. An evasive broker will deflect.
Ask about prepayment discounts. "If I paid this off in full today, what is the discount?" Some funders publish 25–40% discounts on early payoff.
Ask about a refinance-out option. A different funder paying off the original and starting fresh is often cheaper than rolling with the original funder.
Ask whether you actually need the money. The most expensive renewal is the one you took because the broker called, not because the business needed capital.
Use a transparent match platform for the new advance. If you do need more capital, run the deal through our match flow to see whether your existing funder is actually the best fit, or whether a different funder would offer materially better terms.

The honest framing

Renewals are not inherently bad. There are situations where a renewal genuinely is the right call — you have a confirmed high-ROI use of capital, the rollover math nets positive against the opportunity, paying down debt would mean missing a clear revenue opportunity. Those situations exist. They are rarer than the renewal call frequency would suggest.

The seven-step portal workflow is built to fire the renewal call on autopilot. Your job as the merchant is to evaluate each renewal on its own merits, using honest math, with the rollover and broker commission costs surfaced explicitly. If the math works, renew. If it doesn't, don't.

Frequently asked questions

When does an MCA become eligible for renewal?: Most funders set the eligibility threshold at 50% paid down on the active advance, with a clean payment history (no NSFs in the prior 30–60 days). A few aggressive funders accept renewals at 40% paid down for top-tier paper; conservative funders wait until 60–70% paid down. The broker portal flags eligibility the moment the threshold is crossed.
What is the 'rollover' or 'double-dip' on an MCA renewal?: When you renew, the funder pays off your remaining balance from the new advance and gives you the difference. The remaining balance is rolled into the new payback at the new factor rate — meaning you pay interest on interest. On a 50%-paid-down position, the rolled portion typically adds 18–35% to the effective cost of capital on those rolled dollars versus letting the original deal run to term.
Does my broker make money on every renewal?: Yes. Renewal commissions are typically 80–100% of new-deal commissions — the broker gets paid a full commission each time you renew. Most ISO contracts pay 8–15 points of the funded amount on the renewal. This is why the renewal call comes so reliably the moment you hit eligibility.
Should I renew at 50% paid down or let the deal run to term?: Almost always let it run to term, unless you have a specific high-ROI use of additional funds that cannot wait. The math of the rollover is bad for the merchant in 90%+ of cases. Even if you want to refinance, paying off the original deal first (taking the prepayment discount if available) and then taking a fresh advance is usually cheaper than rolling.
Can I renew with a different funder than my original?: Yes — this is called 'refinancing out' or 'taking out' the original position. A new funder approves the deal, pays off the original, and you have a single new position. The math is often (not always) better than rolling with the original funder, because you escape the original funder's rollover pricing model. The catch: not every funder will refinance an active position, and approval is harder.