A renewal costs nothing to acquire, closes faster because the merchant already knows the product, and underwrites better because the funder has repayment history. Most shops spend heavily on new leads while running renewals informally or not at all — which is backwards, because a renewal book compounds and a lead spend does not.
Work out what a funded deal costs you in acquisition, then note that a renewal costs zero. That gap is the entire argument, and most shops still run renewals out of memory.
Proportions are illustrative. The point is which bars exist at all — the two largest costs of a new deal simply do not appear on a renewal.
Most funders will look at a renewal once a meaningful share of the existing advance is repaid — commonly somewhere between half and three quarters, though it varies. The practical signal is not a percentage, it is timing: the merchant starts thinking about the next one before the current one clears, not after.
Not "are you ready for more money." A merchant halfway through an advance has a live view of whether the remittance is working, and the useful conversation is about that. Whether the payment is sitting comfortably, what changed since they took it, what is coming up that needs capital. The renewal is the outcome of that conversation rather than its opening line.
Most funders will consider a renewal once a meaningful portion of the existing advance is repaid — commonly between half and three quarters, though it varies by funder. The practical timing matters more than the percentage: the conversation belongs while the advance is still running, not after it clears.
They cost nothing to acquire, close faster because the merchant already understands the product, and underwrite better because the funder has repayment history on that exact merchant. The two largest costs of a new deal — lead spend and rep time to make contact — do not exist on a renewal.
While the current advance is still running, typically around the halfway mark for a check-in and around 70% for the renewal itself. A merchant who clears an advance and hears nothing from you has clean receipts and a phone full of brokers working UCC lists.
Record funded date, term and expected clearance on every deal at the moment it funds, then set automatic tasks at roughly 50% and 70% of the term. Track who renewed and who did not, and ask the ones who did not why — the answer usually names something you can fix.
Yes, and usually more favourably. The funder is looking at actual repayment behaviour on this merchant rather than inferring capacity from statements, and a merchant who has repaid on schedule is a materially different risk from an unknown one at the same revenue.
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