Merchant Cash Advance Consolidation

Worried about your merchant cash advances?

Consolidating your merchant cash advances can help you save money on interest and fees, and it can make managing your payments easier.

If you’re a business owner, it’s likely that you’ve had to take out a merchant cash advance at some point to keep up with expenses. But what do you do when you have multiple merchant cash advances and the payment starts coming due all at once? You may be thinking about consolidating your merchant cash advances or mca debt relief.

Here’s what you need to know about consolidation.

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What is MCA Consolidation?

When you take out a new loan to pay off multiple existing merchant cash advances, this is known as merchant cash advance consolidation. This may be done with a regular bank loan or through a company that provides merchant cash advance consolidation loans.

If you’re a small business owner, you know how it goes: You take out a loan against future credit card sales, and then have to take out another one just to pay off the first one. But there is aid available.

If you’re trapped in a cycle of borrowing, lenders can provide merchant cash advance consolidations or refinancing to assist you to break free. A merchant cash advance consolidation loan combines all of your outstanding merchant cash advances into one loan, often with a lower interest rate. This can help you save money on interest payments and make it simpler to manage your repayments.

How is an MCA Debt Relief Different?

The two terms – merchant cash advance consolidation and merchant cash advance relief – are often used interchangeably, but they actually refer to two different things.

With consolidated merchant cash advances, you take out a new loan to pay off multiple existing merchant cash advances. This can be done with a traditional bank loan or through a specialized lender that offers merchant cash advance consolidation loans.

Merchant cash advance relief, on the other hand, refers to negotiating with your current lender (or lenders) to get more favorable terms on your repayments. This could involve extending the repayment period, lowering the interest rate, or both.

If you’re struggling to keep up with your merchant cash advances, merchant cash advance relief could be the answer.

There are a few things to keep in mind if you're considering merchant cash advance relief.

1. Interest Rates

The consolidation loan’s interest rate is lower than the merchant cash advances’ average interest rate. This will save you money long-term.

2. Loan Size

The size of your consolidation loan will be based on the total amount of debt you’re consolidating. You may not be able to consolidate all of your merchant cash advances, depending on the lender and the amount of debt you have.

3. Repayment Terms

The repayment terms of your consolidation loan will be different from your merchant cash advances. Make sure you understand the terms before you sign anything.

Why Consolidate Merchant Cash Advances?

There are a few reasons why you might want mca debt relief.

Lower Interest Rates

As mentioned earlier, the interest rate on a consolidation loan will be lower than the average interest rate of your merchant cash advances. This can save you money in the long run.

Easier Payments

With a single payment each month, it will be easier to manage your payments and stay on top of your finances.

Simplified Finances

When you consolidate your merchant cash advances, you’ll have a single loan to deal with instead of multiple payments and interest rates. This can make it easier to track your expenses and keep your finances organized.

If you’re considering consolidating your merchant cash advances, talk to a lender about your options. They can help you find the best loan for your needs and answer any questions you have.

Why Consolidate Merchant Cash Advances?

Although all four debt consolidation solutions on the market have their perks, the best one for you will depend on your current situation.

01

Short-Term Business Loans

A short-term business loan is one type of merchant cash advance consolidation. Banks, internet lenders, and alternative lenders provide these loans. They usually have terms of six months to two years, but some lenders will extend the repayment period to three years for larger debts.
Unlike merchant cash advances, short-term loans have longer repayment periods and lower payments. With an interest rate ranging from 9% to 45%, you can borrow anywhere from $15,000 to $750,000.

Reverse Loan

Existing debt may include penalties for prepayment, preventing early paybacks or buyouts, as well as other restrictions. The lender most likely wants to ensure that they are paid in full for any interest owed. In this case, a reverse consolidation is your best option.
In a reverse consolidation, your new lender sends the money to cover all of your monthly obligations. Then they take back a lesser amount than what they put in – their repayment – which is less than what was taken out. Deposits shrink as you pay off debt until only the reverse consolidation remains.

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Another Merchant Cash Advance

A second merchant cash advance is the third type of merchant cash advance consolidation. In this case, you take out a new merchant cash advance to pay off your existing ones. The main advantage of this option is that it can be quick and easy to get approved.
A merchant cash advance is a loan arranged by a bank or credit union to help merchants increase their sales. The typical repayment period for a new merchant cash advance is two to twelve months, with interest charges ranging from 24% to 49%. You may borrow anything from $8,000 to $250,000.
The downside is that you’ll be starting over with a new loan and new interest rates. You’ll also have to go through the application process again, which can be time-consuming.

Bad Credit Business Loan

Bad credit business loans typically have higher interest rates than other types of loans. They also tend to have shorter repayment terms, which means you’ll have to make higher monthly payments. However, if you have bad credit, this may be the only option available to you.
Although you may have bad credit, you can still qualify for a business loan of $5,000 to $1 million. The minimum monthly revenue requirement is only $8,000 and your credit score must be above 500. Additionally, rates are extremely reasonable- ranging from 12% to 45%.

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CONCLUSION

If you’re struggling to keep up with multiple merchant cash advances, consolidating them into one loan can save you money and simplify your finances. Talk to a lender about your options and find the best loan for your needs. With a little research, you can find a consolidation loan that will help you get out of debt and back on track.

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