Reverse consolidations typically has a funder stage fund the payoff amounts while pulling the full amount daily for the whole deal.

For example, merchant has 10k in 3 MCA's paying $750 daily. The RC (Reverse Consolidation) would "refund" the merchant that weeks payment of $3750 (5 x $750 daily) once per week while pulling the daily on the full 10k RC.

Depending on the terms of each MCA usually there is a savings daily, but in the interim the full daily of the RC PLUS the current MCA need to be paid. Also, if his revs qualify for a higher RC plus fresh capital they can look for more funds. More or less this is the program overview, each funder has their own spin to it.

A consolidation is a just a lump sum payout to all the MCA in one shot.