Quick answer: To consolidate multiple merchant cash advances (MCAs), you take one new advance or loan that pays off your existing balances, so you have a single payment instead of several. It works best when the new payment is lower than your current payments combined and spread over a longer term. Before you sign, compare the total payback of the new deal with what you still owe on your current advances.
Why owners consolidate MCAs
Each MCA comes with its own daily or weekly payment. With two, three or more advances, those payments can take a large share of your deposits before you’ve paid rent, payroll or suppliers. Consolidation aims to:
- Replace several payments with one.
- Lower the total amount coming out each day or week by stretching repayment over a longer term.
- Make cash flow predictable again so you can plan.
Ways to consolidate
1. A consolidation advance
A funder advances enough to pay off some or all of your current MCAs, usually over a longer term than the ones you have now. You then make one payment to the new funder.
2. A term loan
If your credit and revenue qualify, a term loan with fixed monthly payments can replace daily or weekly MCA payments. This is usually the lowest-cost route, but it’s harder to qualify for.
3. Renewing with your current funder
If you’ve paid down a good part of one advance, that funder may offer new funds that pay off your other balances. Ask what the new total payback would be.
4. An SBA loan
Some SBA loans can be used to refinance business debt. They have the lowest rates but take the longest and require strong financials.
How to tell if a consolidation offer is good
- Add up what you owe today. Get the payoff amount for each current advance in writing, and ask whether any offer an early payoff discount.
- Compare payments. The new daily or weekly payment should be clearly lower than your current payments combined.
- Compare total cost. A longer term lowers your payment but can raise what you repay overall. Look at the total payback, not just the payment. Our guide to APR vs. interest rate vs. factor rate explains how.
- Check that it pays everything off. Make sure the new deal actually pays off the balances it’s supposed to, and get confirmation from each funder.
Consolidation vs. debt settlement
These are different. Consolidation pays your current balances in full with new financing. Debt settlement means negotiating with funders to accept less than the full amount, which can come with fees, collections activity and damage to your business relationships. If you’re already missing payments, speak with a professional about your options before taking either path.
When consolidation isn’t the answer
- Your sales are falling and even one lower payment would be hard to make.
- The new offer just adds another advance on top of the ones you have.
- The total payback is much higher than what you currently owe and the payment barely drops.
Talk to Brookestone Funding
Brookestone Funding is a direct business financing lender based in Edison, New Jersey, serving small businesses nationwide. A funding specialist can review your bank statements and current balances and tell you plainly whether a new advance, a line of credit or a term loan would actually lower your payments.
Apply now or call (877) 665-4209.
Frequently asked questions
Can you consolidate merchant cash advances?
Yes. You can use a new advance or loan to pay off your existing MCAs so you have one payment instead of several. It works best when the new payment is lower than your current payments combined.
Does MCA consolidation lower my payments?
It usually does, because repayment is spread over a longer term. But a longer term can raise your total cost, so compare the total payback as well as the payment.
What is the difference between MCA consolidation and debt settlement?
Consolidation pays your balances in full with new financing. Debt settlement negotiates to pay less than you owe, which can bring fees and collections activity.
Can I consolidate MCAs into a term loan?
Yes, if your credit and revenue qualify. A term loan with fixed monthly payments is often the lowest-cost way to replace daily or weekly MCA payments.
Related Merchant Cash Advance Guides
- How much does a merchant cash advance cost?
- Merchant cash advance requirements
- What happens if you can’t pay back an MCA?
See what your business qualifies for
Brookestone Funding is a direct lender serving small businesses nationwide. Apply online in a few minutes — all credit scores considered, no collateral required for merchant cash advances.
- $10K – $2M in funding
- Funded in as little as 24–48 hours
- Decisions based on your revenue, not just your credit score
