Remaining balance = purchased amount × (1 − share paid in). Net funding = new funded amount − remaining balance. For example, a $100,000 advance at a 1.40 factor rate has a $140,000 purchased amount; at 60% paid in, $56,000 remains. A $150,000 renewal would settle that and send about $94,000 to your account, less any fees stated in the offer. InstaFunders considers renewals once 60% of the current advance is paid in.
What "paid in" means
Paid in is the share of your purchased amount (the total you agreed to deliver, your hard stop number) that's already been delivered through your payments. It's measured against the purchased amount, not the funded amount. If you agreed to deliver $140,000 and you've delivered $84,000, you're 60% paid in, whatever the calendar says.
Your funder can tell you exactly where you stand; ask for a balance or payoff letter. Our early payoff guide explains how those letters work.
When a renewal makes sense
- Your business has grown. Higher deposits than when you first funded can support a larger advance.
- You have a use for the capital. Inventory, a contract, a season or an expansion that pays for itself within the term (up to 10 months).
- The net number is worth it. The calculator shows how much reaches you after the old balance is settled. The further you are into an advance, the more of the new funding is yours to use.
If you need capital but aren't yet at 60%, a separate second-position advance may fit, as long as the combined payments fit your cash flow. See positions and stacking.
What a renewal costs
A renewal is a new advance with its own factor rate and purchased amount. The cost of the renewal is its purchased amount minus its funded amount, the same as any advance. Use the cost calculator to see that figure, and the factor rate to APR converter to compare it with other options. More detail on the renewals page.
Frequently asked questions
When can I renew a merchant cash advance with InstaFunders?
Once you've paid in 60% of your current advance, with a solid payment history. Each renewal is underwritten fresh on your latest three months of bank statements.
How is net funding on a renewal calculated?
The new funded amount minus the remaining balance on your current advance, less any fees stated in the offer. The remaining balance is the purchased amount minus what you've already delivered.
Will my renewal be bigger than my first advance?
It can be, if your deposits have grown. It can also be smaller if revenue has dropped. The amount is set by your current cash flow, not your last advance.
Does renewing reset my payments?
Yes. The renewal replaces your current advance, so you move to a single new payment based on the new purchased amount and your current revenue.