[simonwein12]

I’m new to MCA space and have a couple of basic questions.
Can someone please explain the following like I am a baby?


1) I’ve heard of brokers hopping recently funded positions.
Since MCA’s offer little discounts on early payoffs, how would hopping a newly funded position work?


2) What is the difference/advantage between a renewal and taking a new position with a different funder?

Sorry if this is the wrong forum for these questions.


Cheers.

1. A hop wouldn’t pay off the position before it. Hops and payoffs are two different things. A hop would only have a negative affect on the ability to potentially pay off because it adds more leverage to the merchant.

2.A renewal will have better terms 99% of the time vs taking a new position- however a new position might get the merchant more money quicker, depending on how much of his balance is paid