PRBE CAPITAL · FUNDING EDUCATION

MCA renewal: fresh-cash worksheet

Separate the new money received from the obligation that replaces the old agreement.

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Find the fresh cash

Use the proposed agreement and a dated payoff quote. These fields use US dollars. Leave an unknown amount blank; a blank is not zero.

A. Stated new advance ($)B. Old obligation paid from it ($)C. Fees withheld from the advance ($)D. Total new contractual remittance ($)

Fresh cash: A − B − CEnter A, B and C.

Record zero only when the documents confirm no amount applies.

Total new obligationEnter D.

This amount is separate from the fresh cash calculation.

Payoff quote date / expirationRemittance amount and frequency

Read the conditions

What triggers a reconciliation or adjustment, and how is it requested?What restrictions apply to early payoff or additional financing? Note any liens or guarantees.What applicable cost disclosure was supplied, and what assumptions does it use?

A short exerciseHypothetical figures: $60,000 new advance, $20,000 old payoff and $2,000 withheld fees leave $38,000 of fresh cash. If the new remittance obligation is $78,000, record that separately. Explain which existing obligation the renewal retires before comparing alternatives.

Fresh cash is not the cost of financing. Subtracting fresh cash from the new obligation can count an old obligation as a new cost. A factor rate is not APR; annualized comparisons need payment timing, fees and the applicable calculation method. This worksheet does not calculate APR or determine legal disclosure requirements.

Source and scope. Based on the PRBE MCA article and the FTC discussion of small-business financing. The agreement controls remittance and adjustment terms. State disclosure rules depend on their coverage and exceptions.

Read the full article. This worksheet is educational. It is not an application, financing offer or personalized recommendation. Actual documents and applicable requirements govern.