Position buyout and consolidation.

For a merchant carrying 3 or more advance positions, a position buyout is the structural exit: a collateral backed facility that pays every position off in full at closing and replaces the daily debits with 1 monthly payment. It is not a reverse consolidation, and the difference is the entire point.

Buyout versus reverse, in 1 paragraph each

A reverse consolidation deposits new advance money into your account on a schedule that covers your existing daily debits. Every original position stays alive and accruing, a new obligation sits on top, and the total owed goes up. It is another advance engineered to feel like a rescue.

A position buyout retires the positions. Payoff letters are collected for every funder, the facility pays each at par at closing, liens release, and the daily debits stop the day it funds. The balance sheet the next morning shows 1 monthly obligation a bank can read. The full comparison is in our brief.

How the process runs

1. Position schedule. Every advance documented: balance, factor, remittance, remaining term, and contract terms.
2. Collateral read. Equipment, receivables, real estate, and business assets valued against the payoff requirement.
3. Structuring and placement. The facility is designed and placed with lenders whose appetite matches the collateral, at zero points.
4. Payoff and close. Payoff letters and estoppels collected per position, positions retired at funding, lien releases tracked to completion.

Typical terms in the market

Buyout facilities are monthly amortizing structures priced on collateral strength and post buyout coverage. Terms commonly run 2 to 7 years depending on the collateral. The monthly payment is typically a fraction of the combined daily remittances it replaces, which is the entire economic case, and we compute that number for your file before you decide anything.

Documents you will need

1. Every advance contract and a current balance or payoff figure per position.
2. 6 months of bank statements.
3. Collateral schedules: equipment lists, receivable agings, real estate details.
4. Recent financial statements and a debt schedule.
5. Entity documents for lien and UCC work.

What lenders look for

Collateral coverage of the payoff amount, what debt service coverage looks like after the debits are gone, deposit health once remittances stop, and a clean lien picture at close. Underwriters like buyouts for a simple reason: the borrower's cash flow improves the day the facility funds.