Renewal readiness: when a merchant can go again

A merchant who paid down an advance on time is the easiest deal you will place: the funder knows them, the paperwork is light and the merchant already trusts you. Funders know it too, and many contact good merchants directly when they become eligible. The broker who sees the window first usually keeps the deal.

• RenewalA renewal is a new advance to a merchant who has paid down an existing one. It pays off the remaining balance, and eligibility usually starts at 40 to 60% paid in.
• Paid-in percentagePaid-in percentage is how much of an advance's payback a merchant has remitted so far. Funders use it to decide when a merchant can renew.

Funders set their own renewal rules. Many look for the merchant to have paid in around half of the payback, some earlier and some later, and some also require a minimum number of payments or months. Keep each funder's rule on record rather than assuming one number.

A $60,000 advance at a 1.30 factor has a payback of $78,000, collected in 130 daily payments of $600.

payback       = 60,000 x 1.30 = 78,000
paid in       = 69 payments x 600 = 41,400
percent paid  = 41,400 / 78,000 = 53.1%
remaining     = 78,000 - 41,400 = 36,600
50% reached at 39,000 / 600 = 65 payments (about 3 months at 21 a month)

At 53.1% this merchant is past a 50% line. The remaining $36,600 matters as much as the percentage, because a renewal pays it off first. That is the subject of the renewal conversation.

A merchant asking to lower their payment is not a renewal prospect in the usual sense. They may need a different product or a conversation about consolidation, and pushing a bigger advance on them is how early defaults happen.

Percent paid is only as good as the payment data behind it. Most funders send remittance reports or show balances in their portal. Update your records at least weekly for merchants close to their threshold, and fresh statements will be needed for the renewal anyway: ask for the latest month when you call.

Each funded deal keeps a remittance ledger: use Record remittance for payments or the lender's remitted-to-date total, or import a lender's remittance report for many deals at once. Each lender has its own Renewal threshold, with an organization default behind it.

Funded → Renewals groups merchants into Eligible now, Eligible within 30 days and Later, with an estimate of when each one gets there. The funded deal's servicing status sits beside it, so you skip merchants who are behind. See renewals and the renewals help article.