MCA Consolidation — One Loan, One Payment, Stop the Daily Drain

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What is MCA consolidation, exactly?

A merchant cash advance consolidation is a single new loan, typically a term loan or line of credit, that pays off your existing MCAs in a lump sum. Once consolidated:

• The original MCA debts are closed (paid in full)
• Daily ACH withdrawals stop
• You make one monthly payment on the consolidation loan
• Interest rate is typically a fraction of the MCA effective APR

This is different from settlement. Settlement reduces what you owe through negotiation. Consolidation pays what you owe at a better rate. Both end the crisis, but they fit different situations.

Who does MCA consolidation work for?

Consolidation fits businesses that:

• Have $100,000 or more in combined MCA debt (lower amounts usually don't qualify for the consolidation loan)
• Are still revenue-generating, ideally $30,000/month or more in deposits
• Have been operating for 2+ years
• Have not yet defaulted on any MCA
• Can provide business bank statements (usually 6-12 months)
• Are not already stacked to the point that lenders won't qualify them

If you qualify, consolidation is usually faster than settlement, most deals close in 2-4 weeks versus 12-36 months for settlement.

Consolidation vs. settlement: which one is right for you?

Situation	Consolidation	Settlement
Still making full payments	✓ Best fit	Possible
Missed 1-2 payments	Possibly	✓ Best fit
In default	Not possible	✓ Best fit
Strong monthly revenue	✓ Best fit	Either
Declining revenue	Hard to qualify	✓ Best fit
$30-$99K debt	Usually not eligible	✓ Best fit
$100-$300K debt	✓ Best fit	Either
$300K+ debt	✓ Best fit	✓ Best fit
Personal guarantee concerns	Still applies	Settlement may neutralize

The honest answer is: your consultation determines which fits. We run both analyses and recommend the one with the better outcome for your situation.

What does a consolidation loan actually look like?

Typical consolidation loan terms we place our clients into:

• Loan amount: Enough to pay off all current MCAs in full
• Term: 2-5 years (MCA was 6-18 months)
• Rate: 18-36% APR (MCA was 70-160% effective APR)
• Payment: Monthly or weekly (MCA was daily)
• Collateral: Sometimes personal guarantee, sometimes UCC-1 only
• Prepayment: Usually allowed without penalty

The math: a $200,000 MCA stack at 1.4 factor costs you $280,000 over 12 months. The same debt consolidated at 24% APR over 36 months costs $286,000 total, but that's spread over 3x longer, which recovers your monthly cash flow immediately.

How does BDA's consolidation process work?

Step 1, Consultation. We review your current MCAs, your revenue, your credit profile.

Step 2, Pre-qualification. We run the numbers through our partner lender network and identify which lenders are likely to approve and at what terms.

Step 3, Application. We handle paperwork. You provide bank statements and documentation.

Step 4, Underwriting. Lender reviews 3-10 days typically.

Step 5, Closing. Funds pay off your MCAs directly. You start your monthly payment on the new loan.

Most closings happen in 2-4 weeks from consultation.

Trustpilot Slider. Below: "11 years placing consolidation loans. 193 reviews. 4.9/5 rating."

How is consolidation different from taking another MCA?

A consolidation loan is a traditional term loan or line of credit, typically 18-36% APR, monthly payments, 2-5 year term. An MCA has a factor rate (1.3-1.5x) that translates to effective APRs of 70%+ and daily withdrawals. Consolidation solves the daily-drain problem; another MCA amplifies it.

Can I qualify for consolidation if my credit is bad?

Business consolidation lenders primarily underwrite on business revenue, not personal credit. If your business is generating $30,000/month or more in deposits, credit matters less than traditional loan underwriting suggests. Not guaranteed, but more feasible than you might think.

What if I've already missed an MCA payment?

Missed payments usually disqualify you from consolidation, consolidation lenders fund clean books, not distressed ones. That doesn't mean you're stuck. Settlement is the typical path for borrowers who've missed payments, and BDA's MCA debt relief program handles default-stage situations regularly. The consultation determines which fits your specific circumstances.

Will consolidation affect my personal credit?

If the consolidation loan requires a personal guarantee, yes, the new loan will appear on your personal credit. If the MCA debts had personal guarantees and they get paid off, those also update on your credit. Net impact is usually neutral to positive over 6-12 months.

How long does consolidation take?

2-4 weeks typically, from first consultation to funded closing.

What if consolidation doesn't qualify?

Then settlement usually does. The consultation determines which path is realistic. If neither fits your situation, we tell you honestly.

Heading: Stop the daily drain.

Body: Consolidation is usually the fastest path out of stacked MCA debt. See if your business qualifies, it's a 15-minute conversation.

Button: See If You Qualify

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