What Is a Renewal Book?

A merchant becomes eligible to renew once enough of the current advance has been repaid; each funder sets that threshold in its own guidelines. A broker running a renewal book keeps a record per merchant: funder, funding date, payment performance, estimated eligibility date, and whether the merchant has been contacted. When the date approaches, the broker reaches out and resubmits. Renewals typically carry their own commission terms under the ISO agreement, which may differ from those on a first deal.

Renewal business behaves differently from new business. There is no cold prospecting, the merchant is already known to the broker and funder, and underwriting is often lighter because payment history exists. That makes a renewal book a predictable income stream that mature brokers build around, and it is why a shop’s value often tracks the size and health of its book. New merchants feed the front of that book, so cold calling and meetings still matter.

Brokers lose renewals in predictable ways. The funder may contact the merchant directly, merchants default or close, a competing broker approaches them with an offer, or the ISO agreement gives the funder rights that keep the broker out. Ownership of renewals is a contract question, not a habit, so read the terms. Beware also of confusing the book with renewal leads, which are re-marketed lists of past applicants, not funded merchants.