In the world of business financing, timing is everything — not just when you receive capital, but also when you pay it back. One of the most overlooked advantages in the Merchant Cash Advance (MCA) industry is the Early Payoff Discount.
At Spring Advance, we make sure every merchant understands how these discounts work, why they matter, and how they can save thousands of dollars over the life of your advance.
1. What Is an Early Payoff Discount?
An Early Payoff Discount is a reward for paying off your advance ahead of schedule.
Think of it like this: instead of completing your full term of remits, you decide to pay off the remaining balance sooner — and in return, your lender or broker reduces your total cost of capital.
It's a win-win:
- You save money on fees.
- You strengthen your business's funding profile.
- You increase your approval odds (and lower rates) for future advances.
2. How It Works in Real Numbers
Let's say you receive a $100,000 advance with a 1.35 buy rate, meaning your total payback would be $135,000.
If you complete the term as scheduled, you'll pay all $135,000.
But — if you decide to pay off early, most lenders will discount the payoff. For example:
- At week 20, they may offer a 10–15% discount on the remaining balance.
- Instead of paying the full $135,000, you might only owe $126,000 or less — putting nearly $9,000 back in your pocket.
That's money that can go right back into your business — or your next growth opportunity.
3. Why It's Good for Business
Early payoffs do more than save money. They show lenders that your business is financially strong, disciplined, and responsible.
That history gives you access to:
- Better terms on future advances
- Lower buy rates and higher approval amounts
- Priority funding with faster approvals
In short: you're building trust and leverage — and that pays off long-term.
4. When Early Payoff Makes Sense
Not every situation calls for an early payoff, but here's when it's smart:
You've had a strong revenue spike.
You want to renew your MCA at better terms.
You're trying to cut down your total financing cost.
You have surplus cash that's better used reducing debt than sitting idle.
At Spring Advance, we help merchants evaluate the numbers and calculate the true savings before paying off early. Transparency and strategy always come first.
5. Spring Advance's Approach
Many brokers and lenders don't talk about early payoff options — but we do.
At Spring Advance, our goal isn't just to fund your business; it's to help you maximize your savings and long-term growth. That's why we always:
- Explain your payoff options upfront.
- Confirm available discounts with each lender.
- Guide you through renewal or refinancing when the timing is right.
Because when you win — we win.
The Bottom Line
Early Payoff Discounts are one of the smartest ways to cut costs, build credibility, and keep your business financially strong.
If you're currently funded or planning your next round, talk to Spring Advance about how early repayment could save you thousands and open doors to even better future terms.