[MCNetwork]

Most merchants don't know the difference between a refi and an add-on so funders tend to push the refi. It means more money for both the funder and the ISO. Add-ons aren't really done on a cash advance because then it appears to be more like a line of credit as opposed to a straight purchase of future receivables. Funders will make an exception and do an add-on only if it's a valued merchant that they're in danger of losing or if the merchant complains loudly enough. The only time I really see add-ons is on a loan product and only if they're adding a small amount (compared to the initial loan amount) since the merchant's existing balance is still too high for a refi.

Saying that you're a funder that does add-ons instead of refi's is good for the sales pitch but not that relevant from a competitive standpoint. Most merchants simply don't care. The interest on interest that they pay on a refinanced balance is insignificant compared to the other costs associated with a cash advance (i.e., underwriting fees, origination fees, payback amount, etc.).

Merchants only care about how much money they can get, how much it costs and whether they can afford to pay it back.