If you have multiple cash advances that you are currently paying, I can assume 2 things. You want to be paying less daily or weekly and you are confused with what your options are.
You have 4 options, assuming that you don't want to keep renewing the advances and want to get out of the hole your in.
1. Keep paying
You can continue paying currently as you are. The advances will expire naturally.
2. Reverse Consolidation
This is where you partner with a lender that extends the terms of these advances and lowers the restriction of cash flow by pumping money into your account on a weekly basis...covering all your payments for that week. Essentially paying the advance payment for you. A smaller daily is charged. The existing cash advances are not notified and they fall off naturally. This program is designed to provide immediate cash flow relief due to multiple advances robbing your operational capital.
3. Consolidation
With this plan, your positions are paid off in full. In the alternative lending industry, this also requires you to net at least 50% of the total amount. Now the same rules for approval apply here, where you will be approved at around 75 to 150% of your monthly deposits. There are a very small amount of lenders that will approve your business for a net 0 consolidation, where you net nothing.
4. Debt Relief
There are companies undoubtedly calling you asking you to cease payments to your current cash advances. They will advise you to go into default and will then attempt to negotiate with your cash advance companies to lower the amount of your debt and extend the term.
We strongly advise against defaulting on a Merchant Cash Advance because it hinders your ability to borrow in the future. Our program works you out of multiple cash advance positions without negotiating or modifying your agreements with the original lenders.
Unsure of what a reverse consolidation is? Call our office, we can do the math as it pertains to your advance debt, so you can make an educated choice.
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