Jan 3, 2023
When businesses need a large amount of cash urgently and cannot turn to banks due to bad credit scores or not fulfilling eligibility criteria, they find it very convenient to get merchant cash advance (MCA) loans. They are quick to obtain even at a short notice. However, merchant cash advances come with a lot of risks. Sometimes, businesses end up with multiple MCA loans, causing them to suffer from poor cash flow. Some businesses even declare bankruptcy and shutdown their operations because they think that they cannot get out of the vicious circle of MCA debt.
Fortunately, there is a way out of this MCA debt struggle. With the help of a reliable MCA consolidation financing firm, you can consolidate MCA loans and manage your finances in a much better way.
MCA debt consolidation is an MCA debt management strategy that involves combining(or consolidating) multiple debts from one or different merchants into a single payment with better terms. Having one loan account is significantly easier to manage.
The most common way to tackle multiple MCA loans is to consolidate MCA loans by taking out an MCA consolidation loan. This loan is used to pay off multiple creditors. While this type of loan is difficult to obtain from a bank, especially if you have a bad credit score, Royale Capital is one of the best MCA consolidation loan providers that you can contact to consolidate MCA loans.
Consolidating MCA loans makes a sensible choice for several reasons. Some of the biggest benefits that you will enjoy by consolidating MCA loans are as follows:
When you consolidate MCA loans, your loan will have a fixed interest rate and a pre-defined repayment term. You will be paying one single payment of the same amount every month, as opposed to monthly payments on credit cards. This allows you to plan your expenses and easily manage other bills and debt obligations you may currently have. This will further help in reducing the damage to your financial health. Plus, having a payoff date encourages and motivates you to make monthly payments.
Getting an MCA consolidation loan is a smart decision only if you can get it at a better interest rate than what you are paying on your MCA debt now. For instance, if you are paying 16% to 20% on your MCA loans or credit cards because of a lower credit score and you can get a debt consolidation loan for a fixed 14% APR, you are going to save a significant amount of money by the time you pay off your complete consolidation loan.
It can be hard to keep track of multiple merchant cash advances and pay each of them on different dates with different amounts. However, with an MCA consolidation loan, your multiple MCA loans will be rolled into one monthly payment. In other words, you will have only one lender and one loan to think and plan about, which ultimately helps you pay off your debt consistently and fully.
The requirements and eligibility criteria to qualify for MCA consolidation loans vary from one financing firm to another. In general, you need to be at least 18years of age and not involved in bankruptcy. You should also not be involved info re closure proceedings either.
If you are contacting a bank or similar organization, your credit score will be observed along with your income and debt-to-income ratio. All these parameters help lenders determine how capable you are of repaying your consolidation loan.
While some firms might deny consolidating MCA loans after seeing a bad credit score, some financing firms don’t consider credit score as a parameter to determine the borrower’s capability of repaying a loan.
So, remember that not all financing firms have the same eligibility criteria. If you wish to save your business from bankruptcy and creditors, contact Royale Capital now to check your eligibility for MCA debt relief. Based on your financial condition and other factors, the company will determine if you will benefit from an MCA debt settlement or MCA debt consolidation.
You should consolidate MCA loans if you have multiple merchant cash advances that you are finding difficult to pay off. By opting for MCA loan consolidation, you can save money and simplify your repayment by having a single automatic debit instead of making multiple payments.
However, before obtaining an MCA consolidation loan, you should keep in mind a few things. For instance, you must look at what you are currently paying in interest and what you will after getting an MCA debt consolidation loan. It is because if a new MCA consolidation loan doesn’t allow you to save money in interest, it doesn’t make sense to apply for it.
Besides, you should also look at the repayment period and how much amount you will need to pay regularly. While a shorter period might mean bigger payments, you might want to stretch the repayment period a bit longer so that you can afford the payments. However, extending the repayment period also means you will pay more.
Examining and evaluating your options is the best way to see what kind of MCA debt relief is the best option for you.
If you have multiple MCA loans worth $50,000 to $10 million and are thinking about getting some MCA debt relief, please connect with Royale Capital. We will first examine your financial situation and the loans you have been stuck with. Then, we will suggest whether you will benefit from MCA debt settlement or MCA loan consolidation.
With Royale Capital, there are no upfront costs as we follow Pay-as-You-Go (PAYG)model. We aim to help you get out of your MCA debt. So, if you are ready to tackle your MCA debt problem or consolidate MCA loans, contact us now.