Funding types

MCA refinance and consolidation: how to get out from under multiple advances

If daily payments from one or more merchant cash advances are squeezing your cash flow, refinancing or consolidating can lower the pressure. Here is how it works.

Best for: Businesses with one or more MCAs
Speed: Often days
Credit: Depends on revenue and payment history
Repayment: One new payment schedule
Collateral: Varies

Merchant cash advances are fast, but several at once can leave a business sending most of its daily revenue out the door. MCA refinancing replaces one or more existing advances with a new arrangement, ideally with a longer term and a payment your business can carry.

Refinance vs. consolidation vs. buyout

Refinance: replace an existing advance with a new one on different terms.
Consolidation: combine several advances into one payment.
Buyout: a new funder pays off existing balances as part of a new deal.

When it helps

Payments are larger than your cash flow can comfortably handle.
You're juggling several funders and withdrawal schedules.
Your revenue has grown and you may qualify for better terms.

What to compare

Look at the total you'll repay under the new arrangement against what you owe today, the new payment amount and frequency, and any fees. Lower payments stretched over longer can still cost more in total, so make sure the math works for your business.

Longer-term options

Once cash flow is stable, a line of credit or term loan can replace short-term advances for good.

Questions owners ask

Can I refinance a merchant cash advance?

Yes. Many funders offer refinancing or buyouts of existing advances. Terms depend on your revenue, how much you owe and your payment history.