Multiple Cash Advances - Consolidate them with a Credit Line or SBA Loan
Every client that applies with Reverse Consolidation.com has one mission: Their goal is to lower the debt burden of multiple or many merchant cash advances. Most times we are able to successfully enroll a business into a reverse consolidation program. A reverse consolidation eases up cash flow restrictions from MCA debt servicing.
But we actually approve MCA burdened applicants for bank level products like 10 year SBA loans and Bank Lines of Credit.
Businesses that are holding large amounts of MCA debt actually get approved for $100k to $150k SBA 10 year loans and up to $250k Lines of Credit. These businesses are able to take this bank financing and truly consolidate their MCA debt into much cheaper terms.
Our Partner Company, Line of Credit Depot Founder Matthew Elling explains why. “Because debt products for small businesses vary, this means that each has a different underwriting process. For example, some of our Bank Lenders will not require Business Bank Statements to issue lines of credit or SBA loans. The baseline approval hinges on the Gross Income and Net Profitability shown on a tax return. So even if a business has many cash advances, they can still get approved for bank level financing. This is because the bank does not calculate the MCA debt into the underwriting process.
Because the cost of capital for a Line of Credit and SBA Term Loan are much less than the cost of cash advances, the pre-existing cash advances can be paid off. So instead of the business making daily or weekly MCA payments, they are making 1 monthly payment.
The qualifications for these Bank Level Products are as follows:
When it comes to Consolidating Merchant Cash Advance (MCA) debt, you have 3 options. We have seen all sorts of businesses throughout the years, all with different amounts and positions of MCA debt. Each situation is different, but there is one constant trait; every business owner wants to get out of MCA debt! Here are the options that you have based on likelihood of approval and program quality, all of which don’t include debt restructuring (defaulting on the MCA funder).