Managing multiple cash advances can be incredibly challenging on a small business’ cash flow, especially when a significant portion of their monthly profits must go toward repayments. However, a reverse consolidation can help lessen that ongoing financial strain.
Under a reverse consolidation, multiple MCAs are combined into a single savings program. The lender provides a weekly sum to the small business, which is then used to repay the MCAs. Compared to what they would have paid out-of-pocket, small businesses can enjoy lower weekly repayments by as much as 50 percent.
In essence, a reverse consolidation enables smaller repayments over a longer repayment period. The impact is an immediate increase in net cash each week—savings that can go directly back into the small business’ own resources.