Have you considered the solution of a Reverse Consolidation? If your company is looking at loan options, a reverse consolidation could be the answer. When your current cash flow situation is not working, reverse consolidations have helped many businesses move forward with confidence by having more working capital available. Instead of worrying about how to meet your obligations or reach a goal, lessen anxiety so you can focus on your business at hand again with our reverse consolidation option.
What is a Reverse Consolidation?
Reverse Consolidation is a term you’ve most likely heard of, but do you know what reverse consolidation is all about or used for? A reverse consolidation means an alternative funder will provide the business with a loan to take on the daily or weekly payments incurred from a merchant cash advance.
If your merchant cash advance is costing too much or the frequency of payments is problematic, a reverse consolidation is often an opportunity to extend the repayment term and decrease the monthly outgo. This means the business will have a new loan with a lesser frequency and dollar amount of payments for an extended time.
How Does Reverse Consolidation Work?
If your business is struggling to make ends meet because of a decrease in credit card sales, not reaching your goals, and the repayment of a merchant cash advance, our reverse consolidation option has helped many companies be able to move ahead at the pace that works best for them. Alternative Funding Group offers companies a chance to immediately improve their cash flow to grow their business by providing a reverse consolidation. This extends the loan repayment term and can be the best solution if credit card sales are not where anticipated or there is a lack of cash flow. In addition, the Reverse Consolidation solution can lower your payments typically by 40 to 60%.
As you can see, this would provide you with more cash flow to work with because of the lowered payments. Our reverse consolidation option is also helpful to companies with multiple merchant cash advances as we can consolidate them into one loan and payment.
Consider a reverse consolidation if you’re ready to have capital more accessible with more flexibility with your cash flow. We provide you with one larger loan with an extended repayment period and smaller repayment amounts.
What’s the Difference between a Reverse Consolidation and a Consolidation?
A reverse consolidation is only used to pay back a merchant cash advance. A regular consolidation is used to pay back any existing loans.
Advantages of a Reverse Consolidation
Only a few businesses are suitable to have their loans approved from top lenders in the financial markets. Hence, these businesses have to seek alternative funding methods. This could lead to them being left with multiple cash advances to manage. This is where reverse consolidation comes in; to help these businesses handle the small loans and work their way out of debt.
Reverse consolidation keeps your current agreed repayment plan with your MCA lenders. It’s just that the funds from the consolidation lender will cover those payments for you. Sometimes a business runs into issues paying back a merchant cash advance. If this happens in your business, you might want to consider a reverse consolidation.
Obstacles of Reverse Consolidation
While Reverse Consolidation is a welcome option to many companies, there are some obstacles to consider. These include not reducing debt in the short term and are likely increasing overall debt. In addition, as the reverse consolidation loan terms are extended, payments are lowered, the length of holding debt increases.
A merchant cash advance is a handy resource for many companies. When cash flow has seasonal ups and downs or credit and debit card transactions are not performing where expected, and the merchant cash advance still needs to be paid, often, a reverse consolidation helps companies in this situation continue to grow and move ahead. Reverse Consolidation is often an ideal solution for businesses with bad credit or that need fast business funding. However, businesses may sometimes struggle to repay the merchant cash advances daily or weekly because credit card sales are not where they thought they would be by now. If this happens, considering our reverse consolidation solution could be beneficial in your situation to help your business move ahead to reach its goals.
Alternative Funding Group is a national leader in providing US business funding throughout the United States. Contact us to learn more about how our Reverse Consolidation can help your company take care of the merchant cash advance so you can thrive again without any limitations of cash flow.