MCA Consolidation is a Need For Small Business Owners

Most people don’t think about how to consolidate MCA debt before they find themselves over extended with MCA loans. This is because merchant cash advances are designed to give small businesses working funds secured by the sale of future bank and credit card deposits. For businesses who need working capital quickly without a lot of hoops to jump through, this type of loan is tempting. An MCA isn’t always the right solution, though. Yes, they are an easy loan to get from a credit standpoint, but since the loan approval is largely based on the past 3-12 months of earnings, having a lower than average credit score isn’t typically a factor. Consolidate MCA loans Since these are a higher than average risk loan from a lenders perspective and have a high approval rate, they most often have a higher than average payback. In fact, much higher in most cases. Compared to SBA loans, business credit lines, business credit cards and mid and subprime loans, your payback will be higher. When business cash flow slows down is commonly when a business begins to feel the strain of the daily merchant cash advance payments. Many time this leads a business owner to secure another MCA. Sometimes this cycle continues until a business owners finds themselves paying back 4, 5 6 or even more MCA loans. This cycle can’t continue obviously, and at some point getting another cash advance isn’t an option. Looking into bankruptcy or seeking bankruptcy alternatives such as business debt relief isn’t usually far behind this realization. .