Business debt consolidation: several daily payments, turned into one
If the business is carrying two, three or four advances or loans, consolidation replaces them with a single payment on a longer schedule, sized to what the business can carry.
How it works
Stacked advances often mean several debits every business day, each sized as if it were the only one. Consolidation pays those balances off, or covers them, with one new facility and one payment.
There are two common ways to do it: a term loan or advance that pays the existing balances off, or a “reverse” structure where weekly funds cover the existing debits while you repay one new balance on a longer schedule. Your advisor explains which your numbers support.
What owners use it for
- Replacing several daily debits with one payment
- Freeing up weekly cash flow for payroll and suppliers
- Moving from daily to weekly or monthly payments
- Stopping the cycle of taking a new advance to cover an old one
Who it fits
- $50,000 or more in average monthly revenue
- At least one year in business
- Existing positions are fine; there’s no cap on how many
- Recent payments made on time help
How to apply
Check your eligibility
Amount, monthly revenue, time in business. About 60 seconds, soft pull only.
Send your last four bank statements
Through the secure application. No tax returns or business plan for the first review.
Review your offer and choose
Your advisor sends your offer in writing, with the total cost. Nothing is signed until you decide.
Things to know before you choose
- Consolidation isn’t automatically cheaper. A longer schedule can lower each payment but raise the total cost. Weigh total repayment against what you’d pay by keeping today’s positions.
- Read the payoff terms of your existing advances: some discount an early payoff, some don’t.
- Avoid taking new advances after consolidating. It undoes the point.
- Your advisor will show you the numbers both ways before you decide.
Debt consolidation: questions owners ask
Will consolidation lower my payments?
Usually the payment frequency or amount goes down, because the balance is spread over a longer schedule. The total cost can be higher, so your advisor shows you both before you choose.
How many positions can be consolidated?
There’s no fixed cap. The review looks at your revenue against the total of your existing balances.
What is reverse consolidation?
Regular funds cover your existing daily debits as they come out, while you repay one new balance on a longer, single schedule. It’s used when paying all balances off at once isn’t possible.
Does it hurt my credit?
Checking your options is a soft pull. A full credit check may be run only after you choose to move forward with an offer.