[FSB]

Need a recommendation for a lender that does true consolidations. We have a merchant that has (2) positions, and would like to consolidate into (1) position.

Thanks!

Howie Dane
President

Funding Sources for Business
president@fundingsourcesforbuisiness.com

www.fundingsourcesforbusiness.com

[abfunders]

Howie, keep in mind that any "true" consolidations are going to cost the merchant double the cost. It's adding debt onto debt. Unlike a credit card consolidation where the interest is forgiven, in an MCA they bought the receivables, so the funders aren't so willing (or able) to "forgive" the future.

The only way to truly consolidate in a way that makes sense is to have a non-MCA program, like a line of credit or factor or SBA, that is a better cash-flow solution.

Reverse consolidations only make sense if the only thing going badly for the merchant are the daily payments strangling them, and he needs to reduce them by 20-35%, even though it will increase the debt significantly and extend the term, and there's no other option!

[RichardGerard]

Replied Howie..

Micah makes a good point: refinancing expensive debt with expensive debt is a recipe for disaster for the client. The earnings, balance sheet, and guarantor FICO will be the basis of the solution..

Happy to help..

Richard Gusmano, Founder & CEO

Business Capital Consultants Corp
3237 Rt 112 Suite 9
Medford, NY 11763
rg@businesscapitalconsultants.com
Mobile: 516 510 3855
Office: 631-880-7501
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