Reverse consolidation

What is a reverse consolidation?

A reverse consolidation is for businesses with two or more merchant cash advances whose daily or weekly payments are squeezing cash flow. Instead of paying off your current advances in one lump sum, a new funder sends money into your account on a set schedule to cover your existing payments as they come due.

You then repay that funder with one smaller payment, usually weekly, over a longer term. Your existing advances keep getting paid, and you keep more cash in the business every week.

Spreading payments over a longer term lowers what you pay each week, but it can raise the total cost. Your advisor will show you both numbers before you sign.

How it works

1. Apply

   Send your application, your last four months of bank statements and the details of your current advances.

2. We review your positions

   We look at each advance: who it's with, the balance, the payment amount and how much is left, then build a plan around your cash flow.

3. See your new payment

   You get an offer showing your new single payment, the term and the total cost, side by side with what you pay today.

4. Your existing payments get covered

   Once you sign, the funder deposits money into your account on schedule to cover your current advance payments as they come due.

5. Make one lower payment

   You repay the new funder with one smaller payment until the agreed total is paid, with more cash left over to run your business.

Documents needed to apply

• Completed and signed application
• Last 4 months of business bank statements (month-to-date activity helps)
• A list of your current advances: funder, balance and payment amount
• Voided business check
• Copy of the owner's driver's license

Recent balance or payoff letters from your current funders help speed up the review.

Good for

• Businesses with two or more open advances
• Daily or weekly payments squeezing cash flow
• Getting breathing room without paying anything off up front
• Avoiding missed payments and defaults