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Consolidate Your Merchant Cash Advance Loans And Keep Your Business Up And Running

While running a start-up or a small business, the need for funds for a business loan may arise at any time. You would opt for a Merchant Cash Advance (MCA) against your credit card revenues. But suppose you once again run short of funds and apply for yet another MCA and so on. Before you know you have multiple MCAs piled up and most of your credit card revenues are going into repayment of your MCAs. We can refinance all of your MCA/BCA advances, 1st, 2nd, 3rd, 4th, 5th, 6th into one long term financing option.

With multiple MCAs come multiple hold-backs with various rate of interest. Not long before your business begins to spiral down and reach a point beyond your control.

What is the way out of this?

While such a situation is best avoided, sometimes a business cannot help it. A simple way out is to opt for a Merchant Cash Advance Consolidation Loan. Some businesses have more than one short term cash advance which adds up to a large sum being held-back as payback for the MCA.

A Merchant Cash Advance Consolidation Loan adds up all your existing MCAs and makes it into one large loan. In effect, you end up paying just one loan instead of multiple loans with many different rates of interests. In this way, you can lower your payment by almost half.

How can on qualify for a MCA consolidation loan?

There are several MCA providers who specialize in consolidating all your existing short term loans into one big loan which is easier to repay. These MCA providers keep in mind certain factors before they consider paying off all your MCAs and creating one single loan.

  • Try to pay all your existing MCAs on time

  • Avoid having a High NSF (Not Sufficient Funds), definitely not more than 5. The MCA providers must not think of your business as the one which might be unable to pay them back.

  • Once you have taken your last MCA, wait for at least a month before you apply for a consolidation. It would give lenders a chance to check on how you are managing without a consolidation.

What is needed to apply for a MCA consolidation loan?

There are many MCA providers who offer consolidation of loans. When a business has several short term advances, consolidating them all into making one single loan can lower the payments by a huge margin. If a business is past their due in many short term advances and wants to prevent further defaulting, consolidating all the loans is a good option.

In this way, you not just get relief from paying multiple rates of interests and can lower the payment to a great extent. You can also get an increase in the time period to pay back your existing consolidated loan.

While applying for a MCA consolidation loan, you need to hand over to the MCA provider a complete detailed application that includes all the details of the existing short term advances and long term advances if any. They must include all the amounts of each advance and their due date. A lender can consolidate advances of terms ranging from 6 months up to about 3 years.

When in need of more working capital?

Though one must strive to avoid a situation like this, but if a small business that already has multiple cash advances on them, requires more funds as business loans? In such a situation, the option of going by the traditional route of a bank loan is impractical as the procedure is prolonged and may not be suitable considering the business condition.

Such a business may also not qualify for a MCA consolidation loan to many MCA providers, considering its existing advances and perhaps a bad credit may add to the woes. In such a situation, the business has little choice but to opt of another advance in the 2nd, 3rd, 4th or 5th position. This may add to the existing financial crunch.

One must be careful in choosing the right MCA provider who will be able to help you out. A good MCA provider will always give the business a fair chance; they will disregard any bad credit of the business.

A good MCA provider will do their level best to consolidate as many existing advances and help lower the payment by as much as possible.

Other features of a promising MCA provider would be:

  • Not adding to the existing financial dilemma by keeping the rate of interest to a bare minimum.

  • Providing relief in terms of extending the time period of repayment

  • Giving high risk businesses a fair chance to do successful business

  • Keep the application fees and the setup fees to the lowest or even free

  • Allowing multiple forms of transactions other than just the credit card revenues, which could include online payments, with card not present, signature transactions and much more

  • They must also allow multiple underwriting banks, in case one of the banks stops processing, the business will not come to a halt.

Hence when in need of a MCA or a MCA consolidation loan, one must choose the provider carefully.


Citi Wide Merchant Funding

300 Carnegie Center
Princeton, NJ 08540

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