What is Consolidation & Recapitalization?

Debt refinancing replaces high-cost debt — most commonly stacked merchant cash advances and expensive term loans — with a single, lower-cost product. As of 2026, typical outcomes are a 30–50% reduction in monthly debt service and a 5–10 percentage point drop in the all-in rate. Closings run 10–20 business days.

Merchant cash advances are particularly difficult to escape because they take daily or weekly draws directly from sales. Businesses that stack two, three, or more often discover that the combined true APR sits between 50% and well into the triple digits. The first goal of refinancing is to stop the daily bleed and replace it with a manageable monthly payment.

Getting out is rarely a single leap. The realistic path is a sequence of steps. The first move is usually a true-term loan with monthly payments over roughly two years, in the 18–20% APR range. The rate is not impressive in isolation, but it stops daily cash extraction overnight and creates a clean payment history. Twelve months later, that history opens the door to a cheaper product — typically asset-based lending, a non-bank SBA loan, or a bank facility. Each step moves the business closer to bank-grade pricing.

A real refinance lender is taking on debt other lenders considered risky and pricing it lower because they see a viable business underneath. To make their case work, we typically prepare a 13-week cash flow forecast, a clear math-based explanation of why repayment is realistic, and ideally a piece of collateral the lender can underwrite against — receivables, real estate equity, free-and-clear equipment, or in some cases clean owner credit.

Refinancing is not always possible. When a business is several MCAs deep with no commercial receivables, no real estate equity, and a damaged credit profile, conventional refinance math will not work. In those cases the honest answer is sometimes a home equity advance on the owner's residence if available, or a structural reset rather than a refinance. We will say so directly rather than promise an outcome we cannot deliver.