One payment instead of several daily debits.
If more than one advance is coming out of the account every morning, consolidation replaces them with a single payment on a longer term. The debits stop.
What it is
Consolidation pays off existing advances as part of a new, larger facility and replaces the daily withdrawals with one scheduled payment. The new funder pays your existing funders directly; you do not negotiate the payoffs yourself. What changes is the shape of the obligation: one payment, on a longer term, instead of several pulling at once.
Positions stacked one on top of another are the most common reason a business that is trading well still cannot make payroll. The problem is not usually the total owed. It is that all of it is due daily. Spreading it over a longer term is what gives the margins room again.
- Amount
- Sized to your existing positions
- Timing
- Same-day review; payoffs typically within days
- Repayment
- One payment, weekly or monthly
- Effect
- Existing daily debits stop
Why it fits
One payment you can plan around
Weekly or monthly, on a schedule, instead of a different amount leaving every day.
The debits stop
Existing positions are paid off directly by the new funder as part of the funding.
Room in the margins
A longer term means less leaves the account each week. The difference is what pays vendors and staff on time.
Handled for you
Payoff letters, balances and the payoffs themselves are arranged as part of the deal.
Possibly capital on top
Where the file supports it, the new facility can include working capital beyond the payoff.
A way off the stack
Once positions are cleared, the business is back to one obligation and one funder.
How it works
Tell us what is out
The funders, the balances remaining and the daily amounts. Payoff letters if you have them; we can request them if not.
A payoff facility is arranged
A funder in the network sizes a new facility to clear the positions, on a longer term with one payment.
Positions are paid off, debits stop
The new funder pays each existing funder directly. From the next day, the only thing leaving the account is the new scheduled payment.
Who it is for
Two or more positions
The typical file has two to four advances running at once.
Debits clearing before payroll
When withdrawals hit before the money to cover them has landed.
A business still trading well
Consolidation works when revenue is sound and the problem is the shape of the repayment.
One funder, not four
Fewer relationships, one point of contact, one schedule.
Questions
About consolidation
Consolidation
Not necessarily. What changes is how it is repaid: one payment on a longer term instead of several daily. The offer shows the new total and the new schedule, and we go through both with you before you sign.
They are paid off directly by the new funder as part of the funding. You do not manage the payoffs or negotiate with them.
Same-day review of what you send. Once an offer is accepted, payoffs are typically completed within days.
Sometimes. Whether the facility can go beyond the payoff depends on revenue and the funder. Ask; it costs nothing to look.
Trades that usually reach for it
The other ways to structure it
If this was not quite the one, the fit is usually one of these.