Quote Originally Posted by HannahBernstein View Post
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.