There are a few ways to refinance a deal in MCA Suite. In this example, we’re going to walk through the method that’s primarily used to help automate parts of the refinance process. We’ll start with a sample deal from Pete’s Pet Shop. As you can see, Pete has taken out an advance of $10,000 with a 1.2 factor and expected payback of $12,000. 

If we take a look at the Deal Tracking page, we’ll see that $5,000 has already been repaid and that Pete has been paying on time. Some of the other standard metrics can also be found such as the expected deal revenue, amount outstanding, estimated payoff date, etc. To initiate a refinance, we’ll simply click the Refinance button on the Deal Tracking page. 

Doing so will bring us to the Deal Refinance page. This is similar to a deal’s Details page, where you need to define a new deal name, new contract terms and any other relevant info you wish to enter. We’re going to call the new deal “Deal 2 (Refinance)” and enter an amount requested of $4,000 in additional funds. 

Note that we can toggle between the Amount Requested and Advance Amount fields, enter amounts into either and have the other field auto-calcuate. This gives us flexibility when trying to determine how much more money to advance. In our example, the merchant has requested $4,000 in additional funds resulting in a combined advance amount of $11,000 ($7,000 outstanding from the original deal and $4,000 in new money). 

Alternatively, we could have decided that we weren’t willing to advance more than $10,000 to the merchant. We would instead select the Amount Requested radio button to have that value auto-calculate and then enter $10,000 into the Advance Amount field resulting, in an Amount Requested of $3,000. 

Once we are satisfied with our refinance numbers, we click save to continue. This brings us to the Deal Summary page with a confirmation message displayed at the top.  A new deal has now been created with the total advance amount of $11,000, 1.2 factor and $13,200 payback. There is also a link to the original deal, which signifies this is a refinance.   

At this point, nothing has happened with the original deal. In order for the refinance to be finalized, we must track (i.e., fund) the new deal. This will close out the original deal by generating a transaction with the remaining balance as the payoff amount. To track the new deal, we’ll click “Track Deal” as we would with any deal we wish to track, and enter in any relevant info.

Note the confirmation message that appears to verify that we want to perform a refinance and that doing so will automatically payoff the original deal. 

After tracking the new deal, we’ll be brought to the Deal Tracking page. Note that the Post Funding Details section of this Deal Tracking page is a little different since it includes the consolidated information from both the refinanced deal and the new deal.   

If we look at the deal tracking page for the original deal, we’ll see that additional information related to the refinance has been added to the Payment Details section and, more importantly, a transaction for the refinance payoff amount has been automatically generated. 

Finally, the Deal Summary page of the original deal now has a link to the new consolidated deal.