An MCA balance transfer, sometimes called a buyout, means a new funder pays off your existing advance and replaces it with new terms. You deal with one funder afterwards instead of the old one. It is the same mechanism described in our payoff and buyout process, seen from the point of view of why you would move.
Why owners transfer an advance
- The payment is too heavy for current deposits.
- The old funder's renewal terms are not competitive.
- They want to replace several advances with one.
- They want a different payment schedule. See daily vs weekly.
What to check first
| Check | Why |
|---|---|
| Payoff figure | Get a current payoff letter. The number on your last statement is not the settlement amount. |
| Early-payoff terms in your agreement | Some agreements define what an early payoff costs. Read yours. |
| Total repayment on the new offer | A lower payment from a longer term can raise the total. |
| Cash after payoff | Any amount above the payoff comes to you, depending on the offer. |
| Fees | Look for fees in the new offer and add them to the cost. |
When it makes sense
A transfer tends to help when the new total repayment is not higher than finishing the old advance, or when the payment relief solves a real cash-flow problem. It fits less well if the old advance is nearly paid off. If you are weighing a renewal with your current funder instead, see early renewal pros and cons.