The term 'reverse consolidation' is a misnomer, there is nothing 'reverse' about it.

It should be called either a 'tranched consolidation' since consolidation funds are disbursed in tranches- or perhaps 'perverse consolidation' is maybe the better name of any?

The problem with this product is that from an underwriting standpoint you are playing with fire and nothing is stopping client from stacking on top of the consolidation. With higher defaults and low disbursements your commission is looking to be tight. I can't tell you how many deals we've seen that had a perverse consolidation, a stack on top of that, and/or has done a debt settlement deal on the perverse consolidation. Don't plan on this product being around forever, once enough funders get burned the supply of this product will be very limited going forward. Look for funders with traditional consolidation programs first.

plug time: We do a regular zero-net consolidation @Lendvo to reduce payments by 50%+, full commission, high renewal rates too. Granted it's hard to qualify for this product, but when your customer does it works gangbusters. Most importantly it actually saves businesses via a pathway to exiting their screwed-up situation.