[MCNetwork]

I agree with GRP. A refi consummates the original deal and starts a fresh new deal. An add on still has a remaining balance that is at risk of default. .

[GRP Funding]

I agree with GRP. A refi consummates the original deal and starts a fresh new deal. An add on still has a remaining balance that is at risk of default. .

On a refi, the balance gets rolled into the new deal. The original deal might get marked as paid off in your system, but the merchant still has the money. The balance still has a risk of default until it's collected. The "factor on factor" should help cover that added layer of risk. The factor should also cover those funds being extended or started over.

[HannahBernstein]

On a refi, the balance gets rolled into the new deal. The original deal might get marked as paid off in your system, but the merchant still has the money. The balance still has a risk of default until it's collected. The "factor on factor" should help cover that added layer of risk. The factor should also cover those funds being extended or started over.

What is factor on factor? Does that mean that the funder charges the merchant same factor twice on the new deal?

[GRP Funding]

What is factor on factor? Does that mean that the funder charges the merchant same factor twice on the new deal?

If the merchant has a $5k balance and refinances - the funding company would write a new $10k deal and use $5k to pay off the existing balance. The merchant would pocket the other $5k.

On your other question before that - If Company B was giving the merchant $20k and the merchant had a $10k balance with Company A - the merchant would end up getting $10k and Company A would get $10k. So Company B would still write it as a $20k deal and would get paid as so.