Types of Loan Consolidation

October 23, 2018 By: Micah

Here are some scenarios we have found worked for our clients in the past….

1. Use Real Estate

We work with even the unbankable.  A corporate client has had several defaults with lenders, and credit is in the dumps.  We arranged a loan that used existing equity on their personal home that changed their large daily payments into a manageable term loan, extending the term and paying off the initial lenders.

For our clients that need bank-related materials, we have refinanced their $500,000 investment property. took out a new mortgage on it, refinancing all of their debt into a classic mortgage.  We didn’t beat the bank rates, but we got it done in 3 weeks.

We can arrange a Line of Credit using second positions with existing equity as well.

2. SBA / Traditional Term Loans

Instead of paying daily cash advances, with balances in the neighborhood of $2 million, arrange an SBA loan to refinance everything from scratch, paying off your lenders, and lowering payments 90%, into a term loan over 10 years.

3. Line of Credit

We had a client who has been in business for years, had a bankruptcy after a divorce, and whose fiance had fantastic credit.  We arranged a series of 0 APR credit cards for $70,000 to pay off all of her cash advance debt (daily payments), and put her into a solution where she’s paying 3-5% monthly towards the balance, and not towards interest.  She’ll be debt free in 2 years, and liquid the entire time.  We also introduced her to a credit repair agency.

Use this in place of a term loan.

4. Use Business Credit

A client of ours was 4 years Time in Business, he had built up some business credit.  He has balances of $20,000 at 3 cash advance lenders, paying $450/day.  We were able to arrange a solution (not a loan) that he was going to be paying $650 monthly towards his debt.

5. Using Account Receivables

If you are billing credit-worthy institutions, you should clearly be either leveraging your A/R.  There are two ways to do it:

1. Invoice Factoring, which means selling your work-done to a lender and they advance on that.  Notification, and if they don’t pay, they go after the one who your company billed.
2. Use a Line of Credit using your AR as collateral.  If you want no notification or you want lower rates or a larger line and more liquidity, then you’ll want to use your a lender and tech company who uses A/R as a basis for their loan.
3. Get a lender who can provide a Line of Credit to your client in conjunction with your existing factoring relationship.