How Long Does an MCA Consolidation Take?
A straightforward consolidation often closes within a few business days once your statements and payoff letters are in. Files with several funders, recent returned payments or slow payoff letters take longer, because every existing funder has to confirm its balance.
What sets the pace of a consolidation?
- How quickly you send complete bank statements.
- How many funders are being paid off.
- How fast each funder provides a payoff letter.
- Whether there are open issues like returned payments or disputes.
- How quickly you complete the verification call and sign.
Why are payoff letters the bottleneck?
The consolidation funder needs an exact, written payoff amount from every funder it's paying. Some funders turn these around in a day. Others take several. Ask for them as soon as you decide to consolidate. Payoff letters come with a good through date, so if the process drags, you'll need updated ones.
What happens at funding?
On the funding day, the consolidation funder sends each payoff directly to the old funders and deposits any remaining net new cash in your account. Your old debits should stop once the payoffs are received. Watch your account for a day or two, and call immediately if an old funder debits again.
What should you do while you wait?
Keep making your current payments until the consolidation funds, unless the consolidation funder tells you otherwise. Stopping early risks defaults with the old funders that complicate the payoff.
What happens after it closes?
Get zero balance letters from each old funder and confirm UCC terminations are filed. Then settle into the new single payment.
How do you speed it up?
Send all your statements at once, ask for every payoff letter the same day and keep your phone on. Those three habits cut days off the process.
How long should you realistically expect?
A consolidation involves more parties than a first advance, so it takes a bit longer. Plan for that when timing your payments.
What if a funder won't send a payoff letter?
Occasionally a funder is slow or refuses to provide a payoff letter, especially if the relationship is strained. Put the request in writing and keep a copy. The consolidation funder sometimes contacts the old funder directly to confirm the balance. If a funder still won't cooperate, the consolidation can stall, so raise it with us early so we can plan around it.
Can you consolidate only some advances?
Sometimes it makes sense to consolidate only the most expensive or most burdensome advances and leave one that's nearly paid off to finish on its own. Fewer payoffs means fewer letters and a faster close. We'll help you decide which ones to include.
What should you check the day after?
Check your account the morning after funding. Every old debit should be gone. If one appears, call that funder and the consolidation funder right away.
How can Afterfirst help with this?
Call 877-FUND-654 and list every advance you're carrying. We'll tell you what you need to request from each funder and give you a realistic timeline for your situation.
What else do owners ask about this?
- What happens to my old UCC filings after an MCA consolidation?
- Can I consolidate my MCAs if I'm already behind on payments?
- Will asking for a reconciliation hurt my next MCA offer?
More short answers on this topic are on the renewals and consolidation FAQ, and the MCA renewal calculator runs the numbers for your own file.
Have a question we didn't answer?
Ask us on the call. Call 877-FUND-654 with any question. We call you back, usually the same business day, and we always talk with you before we shop your file.