In a process called stacking, small businesses may take on more than one short-term cash advance loan, leading to repayment cycles that can quickly spiral out of control.
In an effort to ease some of this burden, business lender BusinessCash revealed Saturday (Nov. 28) that it will now provide loan consolidation services to its corporate clients. According to an announcement from the company, a new program allows businesses to consolidate merchant cash advances or ACH loans and is a tool aimed at helping companies reduce their repayment burdens.
[bctt tweet=”A new program allows businesses to consolidate merchant cash advances.”]
“Providing a vehicle to allow our clients to combine cash advances into one AR facility allows them to free up cash flow and get out of a difficult cycle of debt payments,” said BusinessCash National Sales Manager Chris Curtin in a statement. “Many times, MCA and ACH users are trapped in this downward spiral.”
According to the company, small business borrowers with IRS issues or tax liens can qualify for merchant cash advance consolidation.
Merchant cash advances have become a more well-known working capital solution for small businesses. Square has recently launched MCA services as it refocuses on the back office of its small business customers; earlier this year, the company struck a partnership with Victory Park Capital to introduce merchant cash advancement services in its small business financing suite.
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