Consolidation
Consolidation replaces multiple daily and weekly debits with a single new payment. It can ease cash flow and it has a cost, so the math matters.
✓ Checking what you qualify for does not affect your credit score.
At Merchant Fund Express, here is the short answer: Consolidation pays off several advances and replaces them with one payment, usually weekly. It eases cash flow and has a cost, so compare totals.
A consolidation facility pays off two or more existing advances and replaces them with one new product, such as a term loan or a line of credit. You exit the old agreements and make one payment, often weekly. The existing funders are paid directly, so the balances should end at zero.
| Advance | Balance | Payment |
|---|---|---|
| Advance A | $16,000 left | $320 a day |
| Advance B | $14,000 left | $240 a day |
| Advance C | $12,000 left | $900 a week |
| Total balance | $42,000 | |
| Combined monthly payments | About $17,200 | |
| New facility, illustrative | $42,000 payoff, 26-week term | About $2,150 a week, $9,300 a month |
All figures in worked examples are illustrations of the arithmetic, not offers or quotes. Real terms depend on your file and the funder.
The monthly outflow falls by about half, and the repayment stretches. Compare the total new cost with what remains of the old balances.
Source: Merchant Fund Express.
How much it falls each week or month
What you will pay across the new term versus what you owe now
How long you are committed
Origination, payoff handling or other charges
See also MCA refinance, MCA buyout and reverse consolidation.
An owner has three balances totalling $42,000 and pays about $17,200 a month across them. A single 26-week facility lowers the monthly outflow to about $9,300 and the payoff total is a little higher than what is left. She decides the relief is worth the added cost because her account has been going negative every week. The decision was the cash flow, not the total.
Source: Merchant Fund Express.
The pull is set by the funder reviewing the file. The effect of closing advances is generally neutral to positive for bank activity. Source: Merchant Fund Express.
Not necessarily. The payment falls and the term lengthens.
It depends on the funder and the state of the account. Talk to us before assuming either way.
Decisions are same-day for a complete file and funding is typically the next business day after signing.
Merchant Fund Express gives a same-day decision. Applying takes a few minutes and will not affect your credit score.
