Quote Originally Posted by GRP Funding View Post
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?