If you have three MCAs and you're getting cold-called every other day, the calls are coming from brokers selling 'consolidation.' The pitch is simple: one new advance pays off all your existing positions and replaces them with a single, longer-term debit. Your weekly outflow drops; the noise stops.
What it actually is
Most consolidation products are not loans — they're MCAs with a longer face term and a higher gross factor rate. The funder books the new advance as new principal at full factor, takes commission, and pays off the old positions at par. The borrower's effective rate stays the same or worsens; the funder books a fresh origination fee.
The exceptions
Real consolidation loans exist. They come from regulated lenders, are underwritten on credit and cash flow, have an APR disclosure, and require collateral most distressed businesses can't pledge. If a 'consolidation' offer is processing in 48 hours and doesn't ask for a personal credit pull, it isn't one.
Why brokers love this product
Consolidation pays the broker on the gross funded amount, which is by definition large because it includes the buyout of the old positions. A $300K consolidation pays a 12% commission ($36K) regardless of the fact that $250K of that is just rolling existing debt at a higher cost.
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