You don’t need a guru. You need a playbook: clean math, clean wires, and no mystery markup.
1) Early-payoff math: discounts vs. fairy dust
Incumbents may sweeten renewals. True early-payoff discounts when a competitor retires the balance? Rare. Why reward churn or make a rival’s loan safer/smaller? Don’t build your refi on a “discount” that vanishes the moment you say “another lender.”
Work the refi like this:
- Max New Gross = what the new lender can fund (revenue-capped).
- Min Net % = what you must take home after payoff.
- Refi must satisfy: Existing Payoff ≤ Max New Gross × (1 − Min Net %)
Price it assuming no incumbent discount. If a real one appears in writing, treat it as gravy.
2) Day-of funding choreography (avoid double-debits)
- Payoff letter: good-through date, per-diem, wire instructions, “UCC-3 upon receipt.”
- Pause ACH: get an email confirming debits are paused on payoff day (+ next business day).
- Wire timing: land the payoff before the normal debit window.
- Confirmations: send wire proof to incumbent + new lender the same day.
- UCC-3: ask for the termination filing within 72 hours; verify on the SOS site; save the PDF.
- Final check: confirmation of no further debits.
Print a one-pager titled NO DOUBLE-DEBIT and tick the boxes. Brokers won’t run this for you.
3) UCC payoff & lien release (don’t leave landmines)
A proper payoff should trigger a UCC-3 termination (not just an amendment). Get timing in writing, verify publicly, and file the PDF. If they insist on an amendment, push back or have counsel review—amendments can leave phantom claims.
4) Renewals: get the markup under control
Here’s the part nobody says out loud:
- If a broker placed your original deal, they get paid again on renewals. Renewal books keep both brokers and lenders afloat.
- Your renewal quote is the sell rate—there’s embedded broker compensation.
- Many lenders cap broker “upsell” (points) by policy (e.g., 12% on first deal, 8% on renewal).
- Even when you’re “dealing with the lender,” renewal pricing often arrives with max upsell pre-baked unless you force the issue.
Practical, non-bullheaded asks:
- To the lender: “Price this with broker comp capped at X%. Itemize all fees.” (They may not reveal the exact split; a cap still constrains the markup.)
- To the broker: “How many points are in this renewal? Cut your take to X%.” (You don’t need their permission to ask; you need a lower number.)
- Ask for a retention credit or fee reduction to offset some/all broker comp.
Leverage that works:
- Get a direct quote from a same-tier competitor (buy rate). Use it as the anchor.
- Tell your incumbent: “Match the net economics of this direct quote while capping broker comp at X%, or I move.”
- Translation: you’re not demanding pure buy rate on a renewal; you’re capping markup to something sane.
Paste-ready email (to current lender):
Subject: Renewal — Cap Broker Comp & Match Net Economics
We’ve paid on time and deposits are clean. Please price renewal with broker comp capped at X%, itemize all fees, soften weekly remittance, and spell out prepay terms. I’m comparing to a direct same-tier quote (buy-rate) and will stay if the net economics match.
Paste-ready email (to broker):
Subject: Renewal Compensation
Confirm how many points are built into this renewal. I’ll move forward if your take is X% or lower. Otherwise I’ll pursue a direct quote with a competitor.
5) Buy rate vs. sell rate — $200,000 example
Assume same remittance schedule; only factor changes.
| Amount | Factor | Total Payback | Difference |
|---|---|---|---|
| $200,000 | 1.33 (sell rate) | $266,000 | – |
| $200,000 | 1.21 (buy rate) | $242,000 | $24,000 less |
52 weekly debits (rough):
- 1.33 → $266,000 / 52 ≈ $5,115/week
- 1.21 → $242,000 / 52 ≈ $4,654/week Weekly relief ≈ $462 (~$2,000/month) plus $24,000 lower total cost.
Commission cap math (separate from factor):
If a renewal includes 8% broker comp on $200k, that’s $16,000.
If you cap it at 3%, that’s $6,000.
You just kept $10,000 that would’ve disappeared into markup.
Two levers, two wins: (1) Go direct to hit buy rate, or (2) Cap broker comp on the renewal to something fair. Do both if you can.
6) When top-tier → top-tier does move the needle
- Big improvements usually require removing markup: either go direct (buy rate) or cap broker comp hard on the renewal.
- Already direct/buy-rate? Expect incremental gains—use payment history and clean deposits to sharpen terms, but don’t expect fireworks.
7) Pitfalls & refi killers
- 2+ positions: a refi would help, but approval probability is near zero. Collapse to one first.
- Early in term: payoff too high vs. what anyone will fund—pay down toward ~50%+ of the opening balance.
- Messy banking: NSFs, negative days, spiky deposits = declines. Clean 30–60 days.
- Tax liens/judgments/landlord issues: fix/settle.
- COJ: avoid signing away the store.
- “Consolidations” that don’t release liens: that’s a stack with a new logo—hard pass.
8) Docs packet (show up like an adult)
- 3–6 months bank statements (full PDFs)
- Most recent business tax return (+ YTD P&L if asked)
- Owner IDs + EIN docs
- Payoff letter (dates, per-diem, wire)
- UCC list from SOS (mark active liens)
- Optional: seasonality memo if deposits swing
9) Your execution checklist (pin this)
- □ Refi math clears without assuming an incumbent discount.
- □ Single position now, or firm plan to close to one.
- □ 30–60 days of clean banking.
- □ Direct competitor quote (buy rate) in hand.
- □ Renewal request sent with broker comp cap = X%, itemized fees, retention credit ask.
- □ Payoff letter in hand; ACH pause confirmed; wire scheduled.
- □ UCC-3 termination promised and later verified.
Bottom line
You don’t have to pick a fight; you have to cap the markup and control the mechanics. If your current deal was brokered, the biggest win is simple:
- Go direct to a competitor for buy rate or
- Cap the broker’s take on your renewal to something fair—and make the lender price accordingly.
Do the math, run the checklist, and stop lighting money on fire. (Policies change—especially bank/SBA rules around MCA-style debt. Verify specifics before you bank on them.)