April 28, 2025
The TRUTH about MCA 'Settlement/Refinancing'
If your business is paying multiple MCAs at once, here is what you need to know!
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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:
Business owners interested in these programs should apply to Line of Credit Depot for consideration.
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If your business is paying multiple MCAs at once, here is what you need to know!
If you are currently paying multiple cash advances, you undoubtedly know how unsustainable this debt servicing can be.
If you stop paying your MCA loans, the funding companies may start the default process which means they will implement collection efforts and most likely legal actions.
If you have been paying more than one cash advance at a time, this MCA debt savings calculator will give you some sobering insight into what percent of your business’ available ‘on hand’ cash is being used to pay down expensive MCA debt.
In today’s highly competitive business landscape, managing debt effectively is essential for maintaining financial health. Our Reverse Consolidation program offers an innovative and flexible solution, empowering merchants to consolidate and manage their business debt more efficiently.
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