When we talk about Consolidating Merchant Cash Advance (MCA) debt you have three options. Our company has dealt with every type of business throughout the years, each with different amounts and postions of MCA debt. Although each position is uniquely different, one trait remains the same; all business owners want to be MCA debt free!
Now lets look at the options that you have based on the porspect of approval and program quality, all of which don’t include debt restructuring (defaulting on the MCA funder).
The Least Likely Option
Why is it not possible for one single MCA company to buy out of all of your current MCA debt? Now if this was a possibility the funder could pay off all of your MCA debt, but the likelihood of you using those proceeds for your business is extremely unlikely. And since you took out other positions in the past you would be wrote off as a risky investment because you could get more MCAs after a refinance. Then this would put the MCA refincace funder in jeopardy. On top of this once MCAs are paid off these funders would then try to give you more money. All of these reasons combined are why you did not see this option being offered in the alternative lending space.
It is possible to find a funder that would pay off existing MCA debt but proper house keeping rules is that you would have to net more than half of the total new loan size, after paying off all other MCAs. For example if you were to be approved for $100,000 and your MCA debt exceeded $50,000 then the deal would not be approved.