Six accounts that didn't fit, one that finally did
Aaron had stacked six different products in eighteen months trying to keep his print shop funded. None of them were wrong on their own. Together, they were drowning him quietly.
Aaron had taken a working capital MCA, an equipment lease, two business cards, a small SBA microloan, and a high-interest revolving line — all over the prior 18 months. Total monthly debt service was almost 19 percent of revenue. None of the products were predatory. The combination of all six was the problem.
His personal profile was a 690 mid-FICO. The business profile had real depth. The cash flow model, on paper, was supposed to work. In practice, the daily-debit structure on the MCA was eating margin before any other product got serviced.
The advisor session built a refinance plan that consolidated three of the six products, retired the daily-debit MCA early using a structured term loan, and rebuilt the cash flow around a single monthly payment instead of six separate ones. The total debt did not go down. The cost of carrying it did.
- 01Built a refinance packet around 3 of the 6 outstanding products: the MCA, the high-interest revolving line, and one of the cards
- 02Sourced a single 5-year term loan at conventional rates to take out the daily-debit MCA early
- 03Negotiated a 14-percent early-pay discount with the MCA funder for full payoff at month 4
- 04Closed the redundant business card to clean up the trade lines on the bureau
- 05Held the equipment lease and the SBA loan untouched — they were the right products in the right place
“Nothing I had taken was wrong by itself. The thing that was wrong was that I had taken six of them.”