The pitch is that my daily and weekly payments will go down, which sounds good because cash flow is tight. But I have been burned by deals that lowered the immediate pressure while making the total debt worse. How do I tell whether reverse consolidation is actually improving my position or just stretching the pain over a longer period?
A lower payment is useful only if the total structure makes the business healthier. Compare current weekly MCA withdrawals, proposed weekly payment, total payback, expected term, and what happens to the old positions. Then ask whether the new payment leaves enough cash for payroll, rent, taxes, inventory, and normal operations. If the payment is lower but the total payback grows sharply, or the old funders still have default leverage, the offer may be short-term relief rather than a real exit. The math needs to show both cash-flow improvement and a credible path out.