The renewal conversation

• Confirm the remaining balance with the funder, not only your own ledger.
• Ask the funder what it would offer and whether it discounts the remaining balance on an early payoff. Some do, many do not; never promise one you have not confirmed.
• Look at the latest month of deposits if you have it. If revenue has dropped, the renewal may be smaller, and the merchant should hear that from you.
• Know the old daily payment, so you can compare.

The merchant from renewal readiness has $36,600 left on a $78,000 payback and pays $600 a day. The funder offers a $90,000 renewal at a 1.32 factor with a 3% origination fee, over about nine months of daily payments. The remaining balance is paid off from the new advance, with no discount.

new advance          = 90,000
origination fee (3%) = 90,000 x 0.03 = 2,700
payoff of old balance = 36,600
net cash to merchant  = 90,000 - 2,700 - 36,600 = 50,700
new payback           = 90,000 x 1.32 = 118,800
daily payment         = 118,800 / 189 business days = about 629
cost of the new cash  = 118,800 - 36,600 - 50,700 = 31,500

The headline is $90,000. The merchant's bank account receives $50,700. The daily payment goes from $600 to about $629, and it now runs about nine more months. The $31,500 at the bottom is the honest answer to "what does this cost me": the new payback minus the old balance they already owed, minus the cash they actually get.

Use your own words; these lines show the order that works.

1. Open with the account, not the offer. "You've made every payment since March and you're past halfway. Your funder has approved you for more if it's useful. Is there something you'd use it for?"
2. Listen for the reason. A merchant with a real use (inventory before a busy season, a second truck) is a good renewal. A merchant who just wants the cash to cover a slow month may need something smaller or nothing.
3. Lead with net cash. "The approval is $90,000. About $36,600 of that pays off what you still owe, and the fee is $2,700, so $50,700 lands in your account."
4. Show the payment and term. "Your daily payment would go from $600 to about $629, for about nine months."
5. State the cost plainly. "For that $50,700 you'd pay back $118,800 in total, which includes the $36,600 you owe now."
6. Offer the alternative. "You can also finish this one out. You'd be done in about three months."

Funders pay renewal commission on different bases. At 8 points, paid on the full advance it is 90,000 x 8% = $7,200; paid only on the new money (90,000 - 36,600 = $53,400) it is $4,272. Know which before you quote your team a number, and record it as a renewal commission so your reports show how much of your income comes back from your own book.

On an eligible funded deal, Start renewal creates a new deal for the same merchant, linked to the original, with the owners carried over. The remaining balance goes into the renewal's offer as a payoff, so the offer calculator shows the true net funding while you talk.

Renewal commissions are tracked as their own type in commission tracking, and the renewals list shows who to call next.