Debt strategy
· Answered by Relief Capital Funding Desk
The question
We have three advances taking daily payments and roughly $8,400 a week is coming out of the account. Revenue is steady at about $220,000 a month but we are drowning in the payments. Is there any way to consolidate these into something normal?
Sometimes, and the odds turn almost entirely on what is left to repay rather than on what was originally borrowed. At $8,400 a week you are carrying roughly $437,000 a year of debt service against $2.6 million of revenue, which is why it feels the way it does. A consolidation is possible, but the honest version is considerably harder to obtain than the offers arriving in your inbox suggest.
Weekly debt service across the three advances, near $437,000 a year
$8,400/wk
Indicative; a refinancing lender works from your actual payoff letters, not the original balances.
Work the problem in order. Get payoff letters from all three, because advances are frequently discounted for early payoff and the real number is often 10% to 20% below the balance shown on a statement. Then look at what on your balance sheet could carry a cheaper facility: owned equipment, receivables, or real estate. A conventional term loan over three to five years replaces a daily payment with a monthly one, and that change alone can restore the operating cushion.
Business Term Loans and Asset-Based Lending are the two realistic exits, and Invoice Factoring can bridge payroll while a refinance is underwritten. Call the desk with the three funding agreements and a recent bank statement — that combination tells us in one reading whether a refinance is available or whether the honest answer is a negotiated workout.
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