The need for Debt Consolidation services has arisen due to the recent dramatic increase in small businesses employing Merchant Cash Advances as a source for short-term funding. Merchant Cash Advances have become attractive due to their quick application process, fast access to capital, with the approval not being so heavily dependent on your Credit Score. As a result, more and more businesses, who previously may have used a credit card or their own funds for working capital, are turning to MCA lenders.
The catch is that many companies make two critical mistakes: first, they don’t do the math as to the size and frequency of the cash withdrawals by the lenders. And second, they often find themselves going to the well again, taking out a second, third, fourth, or more MCA loans – a term referred to as “stacking”. Stacking results in a cascade of variable withdrawals from your small business bank account, resulting in you effectively losing control over the Cash Flow you were trying to fix when you took out the advance in the first place.
To help with this situation, ei Funding has added Debt Consolidation to our service offering as part of a Factoring or Purchase Order financing facility, for the purposes of reducing your debt burden and helping get your Cash Flow back under control.