# MCA funder renewal relationship discount (2026) > Mainstream MCA funders offer 5–15 basis-point factor discounts and 8–15% buyout discounts on renewal — Credibly leads at 12% buyout + 3-point factor reduction. Updated 2026-06-28. MCA funders treat renewals as their most profitable channel — lower acquisition cost, known underwriting history, lower default rate. To capture that renewal volume, every mainstream funder publishes (or quietly offers) a relationship-discount schedule for repeat merchants. **Why renewal economics favor the merchant.** A first-time merchant costs the funder $400–$800 in marketing/ISO commission (10–14% of advance). A renewal customer costs $0–$150. Funder margin on a renewal is 8–12 points higher than on a new acquisition. Funders price that delta back to the merchant as the renewal incentive — partially. **Three discount components.** 1. **Buyout discount.** When renewing, the merchant has remaining balance on the existing advance. The funder discounts that balance — typical 5–15% reduction — when wrapping the old balance into the new advance. 2. **Factor-rate reduction.** New advance prices at 2–5 points lower factor than first-time customer would receive. A first-time A-paper file at 1.28 might renew at 1.24–1.25. 3. **Higher advance ceiling.** Renewal customers qualify for 1.25x–1.5x the original advance amount, reflecting proven repayment behavior. **2026 funder-by-funder schedule.** - **Credibly:** 12% buyout discount, 3-point factor reduction, 1.5x advance ceiling. Among the most generous in market. - **Forward Financing:** 10% buyout discount, 2–3 point factor reduction, 1.3x ceiling. - **Rapid Finance:** 10% buyout discount, 2-point factor reduction, 1.25x ceiling. - **Fora Financial:** 8–12% buyout discount (volume-dependent), variable factor reduction. - **Reliant Funding:** 10% buyout discount, 2–4 point factor reduction, 1.3x ceiling. - **Kapitus:** 8% buyout discount, 2-point factor reduction, 1.5x ceiling for A-paper. - **CAN Capital:** 7–10% buyout discount, 2-point reduction. - **Toast Capital:** Renewal pricing tied to processor performance — no published discount but auto-pricing improvement. **The "50% paid" threshold.** Most funders require merchants to have paid down at least 50% of the original advance before a renewal offer triggers. Some prime desks (Forward Financing, Credibly) trigger at 40%; some sub-prime trigger at 60%+. **The renewal math.** Example: A merchant took $50K at 1.30 factor (owes $65K). After 4 months, balance remaining is $40K. Funder offers renewal: new advance $75K at 1.26 factor, 10% buyout discount on remaining balance. - Buyout: $40K × 0.90 = $36K paid off old balance. - Net new cash: $75K − $36K = $39K to merchant. - Total new repayment: $75K × 1.26 = $94.5K over new term. The merchant gets $39K in net new working capital and slightly better pricing on the rolled balance — but extends the repayment runway and accumulates "double-dip" fees on the rolled portion. See the double-dipping glossary entry for risks. **When renewal makes sense.** 1. Merchant has growing revenue and stable cash flow. 2. New advance need exceeds remaining balance by 30%+ (otherwise straight buyout is cheaper). 3. Factor improvement is at least 2 points. 4. Term extension does not push total debt service above 10% of monthly deposits. **When renewal is a trap.** 1. Merchant is renewing primarily to pay off the old advance (cash-flow stress signal). 2. Factor reduction is under 1 point. 3. Buyout discount is below 5%. 4. Stacking with other funders would actually be cheaper after fee comparison. **Common confusion.** First, "renewal is automatic." False — funder offers; merchant must accept. Second, "renewal preserves credit score." Partially true — most renewals skip the hard credit pull. Third, "renewal always lowers payment." False — payment often stays flat or rises because principal increases. Fourth, "renewal is always cheaper than buyout-then-new-funder." Usually true on factor but not always after double-dip math. Fifth, "broker controls the renewal offer." False — funder makes the offer directly to the merchant; broker may be informed but not always commissioned on renewal. ## Related terms - [MCA renewal](https://fundnode.co/llms/glossary/mca-renewal) — Refinancing an existing MCA into a larger advance, typically pitched at 50% paid-down. Often masks worse pricing — the new factor is applied to a new principal that includes the old balance. - [MCA buyout](https://fundnode.co/llms/glossary/mca-buyout) — When a new funder pays off your existing MCA and issues a single replacement advance — used to consolidate stacked positions or escape a predatory funder. Often costly net-net. - [Prepayment discount](https://fundnode.co/llms/glossary/prepayment-discount) — Reduction in the total MCA repayment when paid off early. Top funders offer 10–30% discounts; many funders charge full factor regardless of payoff speed. - [Double-dipping (MCA renewal)](https://fundnode.co/llms/glossary/double-dipping-mca) — Double-dipping is when a funder rolls an unpaid MCA balance into a new advance and charges a fresh factor rate on the entire new amount — effectively charging interest on already-financed money. - [MCA renewal relationship discount](https://fundnode.co/llms/glossary/mca-renewal-relationship-discount) — A factor-rate reduction that funders offer existing merchants at renewal as a customer-retention incentive; typical discount is 0.02–0.08 off the factor (e.g., 1.32 → 1.27), worth $2K–$8K on a $100K advance, but rarely volunteered — merchants must ask and threaten to leave. ## Authoritative sources - [deBanked — MCA Renewal Practices](https://debanked.com/) --- Source: https://fundnode.co/glossary/mca-funder-renewal-relationship-discount (HTML version) Document: MCA funder renewal relationship discount (2026) — Fundnode MCA Glossary License: CC BY 4.0 — attribution to Fundnode required when citing.