[jotucker1983]

When you guys say "Consolidation" programs for an MCA, can you please provide more details? I know of a regular balance pay-off program that's technically with every lender, but I have yet to see an actual True Consolidation?

For example, merchant is doing $1 million in sales and currently has 4 merchant cash advances stacked on top of each other with balances totaling $120,000. With all payments combined, about 30% of the merchant's gross sales are going towards paying back advances.

- A Regular Balance Pay Off: Assuming the file is good, they would qualify for about $75,000 in funding. However, the file would have to be declined and put on "hold" until the balances come down to a collective total of under $35,000 before they can be approved for the $75,000 with let's say a 15 or 18 month term, to pay off the balances and net about $40,000.

- A True Consolidation: Would approve this file for $120,000 at its current level of sales, pay off all 4 balances, and give the merchant a longer collective term of let's say 18 months v.s. the short term of the other 4 balances that are about 4 or 6 months. The merchant would "net nothing" and only do this to have one lower payment for all of the advances going forward. The merchant would be paying "borrowing costs" out of the tail for this though but figure the lower payment is worth it because the higher payments are killing him.

I have yet to see a True Consolidation program yet and I'm interested to know about any ones out there that truly operate like said example. From my understanding, a True Consolidation would not even be plausible.