What Should I Know If My Business Is Considering Debt Consolidation?

What should you know if my business is considering debt consolidation?

If your business is considering doing a debt consolidation or reverse consolidation of a merchant cash advance, tread carefully. 

Do Reverse Consolidations Work? 

Reverse consolidations rarely work as intended, and it's crucial to understand why. The primary goal of any debt restructuring should be to alleviate financial strain and improve your business's overall financial health. However, with reverse consolidations, this is often not the case. You need to ensure that any additional debt you take on genuinely enhances your business's position rather than worsening existing financial issues.

Unfortunately, we frequently encounter companies that reach out to us after doing a reverse consolidation, only to find themselves in a more precarious situation than before with more debt, more payments, and more issues.  Unfortunately, this often happens because the terms they were promised or expected were not what they ultimately received. 

Let an Attorney Review Your Debt Consolidation Contract Before Signing

In any contract to borrow money, especially if it's going to be a debt consolidation or reverse consolidation, do not sign it without having a professional—your attorney—review that contract.

Every situation is unique. If you have questions, contact our office. We'd love to help you,

The material and information contained on this website is for general information purposes only. You should speak with an experienced attorney in your area before making any legal decisions.