MCA Cash Advances: Terms, Statuses, Renewals & Reups
A merchant cash advance renewal (a refi) closes the current advance, carries the remaining balance into a brand-new advance, and opens it with new terms — preserving full repayment history. A cash advance itself is the funding contract that records terms, tracks repayment, and drives nearly everything else in the deal. MCA Track logs every status change automatically with a timestamp and the balance at that moment, and supports renewals, reups, and conversion to a credit line from the advance.
Key takeaways
- A cash advance is the funding contract at the heart of every deal; each merchant can have several advances, and the most recent is the current one.
- A renewal (refi) closes the current deal, carries the remaining balance into a brand-new advance record, and opens it with new terms, while a reup adds money to the existing advance in place.
- A reup is reversible and logged; a refi creates a separate new advance and the old remaining balance is carried in as a payoff withheld.
- MCA Track tracks nine advance statuses, from Open through Closed and Cancelled, and logs every status change with a timestamp and the balance at that moment.
- Add any syndicator before the first reup — you cannot add a brand-new syndicator once a reup or renewal history exists.
What is a cash advance in MCA Track?
A cash advance is the funding contract at the heart of every deal — it records the terms, tracks repayment, and drives nearly everything else. Each merchant can have several advances; the most recent is the current one, and renewals preserve full history.
The core terms define the economics of the deal. The advance amount is the principal funded to the merchant, the factor rate is a multiplier that sets total payback, and the payback amount is the advance multiplied by the factor rate. Expected duration, split percentage, payment schedule, and the position, risk level, and FICO score round out the contract.
| Term | Meaning |
|---|---|
| Advance Amount | Principal funded to the merchant — the money at risk. |
| Factor Rate | Multiplier setting total payback (e.g., 1.35). |
| Payback Amount | Advance multiplied by factor rate — the total owed. |
| Expected Duration | Projected term to pay off (days, business days, weeks, or months). |
| Split % | Share of daily sales collected on split-funded deals. |
| Payment Schedule | Daily, Weekly, or Monthly collection cadence. |
| Position / Risk / FICO | Lien position, risk level, and owner credit score. |
What statuses can a cash advance have?
A cash advance moves through nine statuses, from Open while it is performing to Closed when fully repaid. Several statuses — Collections, Written Off, and optionally Legal — count as defaulted, while Cancelled is treated as 100% performance and excluded from balances. Every status change is logged automatically with a timestamp and the balance at that moment.
| Status | Meaning |
|---|---|
| Open | Active, performing deal currently being collected. |
| Late | Merchant has fallen behind on scheduled payments. |
| At Risk | Elevated repayment concern — a step beyond Late. |
| Collections | Turned over for collection of an unpaid balance (counts as defaulted). |
| Written Off | Balance recorded as a loss (counts as defaulted). |
| Legal | In legal proceedings (optionally counted as defaulted). |
| Settled | Resolved for less than the full balance owed. |
| Closed | Fully repaid and completed. |
| Cancelled | Voided; treated as 100% performance and excluded from balances. |
What is the difference between a renewal (refi) and a reup?
A renewal, or refi, closes the current deal, carries the remaining balance into a brand-new advance, and opens it with new terms. A reup instead adds funds to an existing advance in place — the amount increases, a disbursement is recorded for the new money, and history stays on the same record. A reup is reversible and logged; a refi creates a new advance record.
You can also convert an advance to a credit line, which switches to a revolving structure with monthly percentage-based cost. From the advance you manage disbursements, fees (origination, wire, NSF, and others, some flowing to the ISO as commission), and syndicators. Add any syndicator before the first reup, because you cannot add a brand-new syndicator once a reup or renewal history exists.
How do you renew (refi) a merchant step by step?
You renew a merchant by running the renewal from the current advance, entering new terms, and confirming the carry-forward of the prior balance. The old advance closes automatically and the new one becomes current, with syndicator terms carried forward as a saved snapshot.
- Spot the opportunity. A nearly paid-off merchant is often ready for new money; the Dashboard surfaces these on the Ending Soon list, and the Refi Report’s percent-paid-before-refi is a useful health signal.
- Run the renewal. From the current advance, enter the new terms — amount, factor rate, duration, and schedule. The old advance closes automatically and the new one becomes current.
- Understand the carry-forward. A brand-new advance record is created and the old remaining balance is carried in; you enter the payoff withheld to retire it, and the merchant’s net proceeds are the remainder.
- Set up the new ACH schedule for the new terms.
- Handle syndicators. Their terms carry forward automatically (a snapshot is saved), and they are invoiced only for the incremental new money.
- Confirm and document. Verify the first payment clears and add a note recording the renewal.
The advance terms in step two are the same ones first entered when you create and fund a merchant. Returning payments and bounced-ACH handling are covered in the cluster pages on payments and ACH processing.
Curious how renewals and reups look across your live book? Book a walkthrough → or return to the complete MCA servicing software guide.
Frequently asked questions
A renewal, or refi, closes the current advance, carries the remaining balance into a brand-new advance record, and opens it with new terms. The old advance closes automatically and the new one becomes current, preserving full history.
A reup adds money to the existing advance in place: the amount increases, a disbursement is recorded for the new money, and history stays on the same record. It is reversible. A refi instead creates a brand-new advance record.
The payback amount is the advance amount multiplied by the factor rate. For example, an advance with a factor rate of 1.35 sets a total payback of 1.35 times the principal funded.
Collections and Written Off count as defaulted, and Legal can optionally be counted as defaulted. Cancelled is treated as 100% performance and is excluded from balances.
Add any syndicator before the first reup. You cannot add a brand-new syndicator once a reup or renewal history exists on the advance.