Do you have multiple MCA’s? MCA’s can be a great fit for when you really need cash quickly, but most times business owners find out that the quick payback of MCA’s stifle cash flow. When someone wants to ‘get rid of the MCA’s’, what they actually need to do is ease up their cash flow drain. A Reverse Consolidation is the way out of feeling the pressure of MCA payments.
Because of the way an MCA agreement is structured, it doesn’t necessarily mean that you will save money if the owed balance is paid off early. This means that even if you want to pay off the balance before the end of the term, you will have to pay the full contract amount, which is based on an agreed upon frontloaded factor rate. So, if you are feeling the cash crunch because of multiple MCAS payments at once, the Reverse Consolidation program can be a great fit.
To stop the cash flow loss and fully exit your MCAs without default, you might want to consider how a Reverse Consolidation can fund your business weekly exactly for the total amount of MCA payments you would have that week. The smaller payment charged by Reverse Consolidation will generally be 50% less than what you were paying before.
We advise everyone to stay away from debt consolidation, because they will tell you to stop paying the MCA. This is not a smart move, since then the business will be negatively impacted by not being able to borrow money commercially again. The debt consolidator would be actually helping you break the MCA agreement, illegally interfering with your private agreement.
If your business can keep supporting the fast repayment of multiple MCAs at once, you most likely won’t need a Reverse Consolidation. But, if your business is getting negatively impacted by multiple MCA’s and you're losing sleep over this, please apply here.
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