What Is a Reverse Consolidation and How Does It Work?
5 min read
A reverse consolidation is a different way to relieve stacked advances. Instead of paying every funder off on day one, the new funder makes your existing payments for you while you make one smaller payment back.
How it differs from a traditional consolidation
In a traditional consolidation, existing balances are paid off up front. In a reverse consolidation, existing advances keep being paid on schedule by the new funder, and you repay the new funder on a lower, longer schedule.
Who it tends to fit
- Merchants with several active advances and steady deposits
- Businesses that can't qualify for a single large payoff
- Owners who need immediate payment relief
See what your payment could look like
Apply in a few minutes and send your last 4 months of bank statements for a free review.
Questions to ask before you sign
- What is my total payback compared with what I owe today?
- Which existing payments will be covered, and for how long?
- What fees apply, and are they in writing?
- What happens if one of my existing funders changes my payment?
Common questions
- Is a reverse consolidation a loan?
- Structures vary by funder. Read the agreement to understand exactly what you are signing and ask questions before you commit.
See what your payment could look like
Apply in a few minutes and send your last 4 months of bank statements for a free review.
This guide is general information, not legal or financial advice. Terms vary by funder and agreement.