Consolidation of Positions: how stacked advances can cost you less
If your business has taken more than one merchant cash advance or short-term loan, you already know the feeling: every morning, several payments leave your account before the first customer walks in. In the funding world this is called stacking, and each open advance is a position.
Stacking usually starts for a good reason. A first advance funds inventory. A second covers a slow month. A third pays for a repair you didn’t see coming. But each new position adds its own daily or weekly remittance, and together they can squeeze the cash flow you need to run the business.
Consolidation of Positions is designed to fix that.
What consolidation actually does
Consolidation combines your open positions into one new position with a single, more manageable payment. Depending on your file, a consolidation can:
- Lower your combined daily or weekly payment. Falcon clients save 30%–50% on average on their current payments.
- Replace several payments with one. One funder, one schedule, one number to watch.
- Free up working capital. The money that used to leave your account every day stays available for payroll, inventory and growth.
A simple, illustrative example
Here is how the math can look. This is an illustrative example, not an offer or a real client.
| Before | After consolidation | |
|---|---|---|
| Position A | $450 / day | — |
| Position B | $380 / day | — |
| Position C | $240 / day | — |
| Total daily payment | $1,070 / day | $640 / day |
In this example, the business saves $430 per business day, about 40%, and moves from three payments to one. Over a 21-business-day month, that is roughly $9,000 that stays in the business.
Your actual savings depend on your balances, your revenue, the terms of your existing agreements and underwriting. A lower daily payment can also mean a longer repayment period, so always look at the total cost as well as the daily number.
Signs consolidation might make sense
Consolidation is worth a conversation if:
- You have two or more open positions and the combined payment is straining cash flow.
- You are considering another advance just to cover existing payments. That is the stacking treadmill, and it tends to get more expensive with every turn.
- Your revenue is steady or growing, but the money never seems to stay in the account.
- You want one clear schedule you can plan around.
What you’ll need to get started
To model a consolidation, a specialist will typically ask for:
- Your last few months of business bank statements
- A list of each open position: the funder, the current balance and the payment amount and frequency
- Basic business details: time in business, monthly revenue and industry
Most consolidation files look for 6+ months in business, $15K+ in monthly revenue and a 550+ credit score, although every file is reviewed individually.
Questions to ask before you consolidate
A good consolidation should leave you better off, not just different. Before you sign, ask:
- What is my new total payback, and how does it compare with what I owe today?
- How long is the new term?
- Are there any fees on the new agreement?
- What happens if I want to pay off early?
- How will this plan help me avoid stacking again?
A Falcon consolidation specialist will walk through every one of these with you before you commit.
The bottom line
Stacked advances are common, and they are fixable. Consolidating them into one position can lower your payment, simplify your finances and give your cash flow room to breathe, so you can get back to playing offense.
Ready to see what your numbers could look like? Read Consolidation of Positions, then start your application or call us at +1 (917) 245-5277. If new advances are still covering old ones, start with how a merchant cash advance is structured.
This article is for general information only and is not financial, legal or tax advice. All funding is subject to underwriting and approval. Approval is not guaranteed.
Frequently asked questions
What is stacking?
Stacking is holding more than one merchant cash advance or short-term loan at once. Each open advance is a position, and each adds its own daily or weekly remittance. Together they can squeeze the cash flow you need to run the business.
What does consolidation actually do?
It combines open positions into one new position with a single payment. Falcon Consolidation of Positions typically runs $10,000 – $2,000,000 with 6 – 36 month terms. Clients save 30%–50% on average on their current payments. Approval is not guaranteed.
Does a lower daily payment always cost less overall?
Not necessarily. A lower daily payment can also mean a longer repayment period. Always compare the new total payback with what you owe today, not only the daily number.
When is consolidation worth a conversation?
If you have two or more open positions and the combined payment is straining cash flow, if you are considering another advance just to cover existing payments, or if revenue is steady but the money never stays in the account.
What do I need to get started?
Recent business bank statements, a list of each open position (funder, current balance, payment amount and frequency), time in business, monthly revenue, and industry. Most consolidation files look for 6+ months in business, $15K+ monthly revenue, and a 550+ credit score, although every file is reviewed individually.