Funding types / Consolidation
Make sense of consolidating existing business advances
See what goes to old balances, what may reach your business, and how the new payment and total payback compare before you decide.
In plain English
Consolidation or refinancing replaces one or more existing business advances with a new funding arrangement. The new funds may be used to pay off the remaining balances, and any amount left after those payoffs and applicable charges may go to your business as new cash. That cash in hand can be much less than the headline funding amount. The new arrangement also has its own payment schedule, total payback, and exit terms, so compare the full picture with what you have now.
How it works
From apply to paid off.
01
Gather your current advance details
Collect current payoff amounts, payment schedules, remaining terms, and any written payoff or early exit conditions. Ask each provider for a payoff figure that is current for the date you are considering.
02
Review possible replacement offers
Goldhour Capital is a brokerage. We work with funding partners and can help you review whether an offer may consolidate existing balances, provide additional cash, or both.
03
Compare the full uses of funds
Separate the new funding amount from the amounts allocated to old balances and any listed charges. Check the resulting cash to your business, which may be lower than the headline amount or may be zero.
04
Confirm payoff and new payment details
Before signing, confirm which old balances will be paid, who will send each payoff, when existing payments should stop, and what the new payment schedule, term, total payback, and exit terms say.
05
Track the payoff through completion
Keep confirmation that each old balance was settled and check your account activity for any payments that continue after payoff. Then track the new arrangement using its written schedule and contact your named Goldhour specialist with questions.
How it is priced
Each funding partner sets its own offer terms. A partner may describe the amount provided, a factor rate or another pricing method, listed fees, and a fixed total payback. In a consolidation, the amount used to pay old balances and any listed charges is taken from the new funding amount, leaving the net cash to your business. Compare total payback and payment schedule with your current obligations, not just the new amount or payment. Use the Offer Decoder to lay out the offer terms in plain English.
Reading the offer
Enter the written offer in the Offer Decoder and check the lines for gross funding amount, each fee by name, payoff amounts allocated to existing advances, cash that lands in your account, total payback, payment amount and frequency, term, and exit terms. Compare these with current payoff statements and schedules. If the offer does not clearly show whether old providers are paid directly or whether a payoff figure can change, ask the funding partner to clarify in writing before signing.
Open the Offer DecoderBest for
- Owners managing several advance payments who want to understand whether one replacement schedule could simplify cash flow.
- Businesses whose current payoff amounts and payment schedules are documented and ready to compare.
- Owners considering a refinance who want to see the actual cash left after old balances are paid.
- Owners who usually work with a funding partner when they have 1+ year in business, 550+ credit, and $50K+ monthly revenue. These are typical fit guidelines, not rejection rules.
- Contractors, chefs, and shop owners who want the tradeoffs explained in plain language before making a decision.
Not ideal when
- You have not confirmed current payoff amounts, so the cash left after settlement is still unclear.
- The new schedule may strain cash flow even if it combines multiple payments into one.
- The written offer does not explain fees, payoff handling, payment timing, or exit terms clearly.
- The new arrangement could increase total payback or extend the time you are making payments, and that tradeoff does not work for your business.
- You are relying on a specific amount of new cash before seeing the written payoff figures and final terms.
What it does well
- May replace multiple payment schedules with one new schedule.
- Can make the allocation of funds to old balances and any remaining cash easier to review when documented clearly.
- Offers a chance to compare the new total payback and exit terms against existing obligations before signing.
- May include additional cash for the business after old balances and listed charges are accounted for.
- Goldhour provides a plain-English, side-by-side breakdown of offers before you sign.
Trade-offs to weigh
- The new funding amount is not the same as new cash in hand. Existing payoff balances and listed charges reduce what remains.
- A lower or simpler payment schedule does not necessarily mean a lower total payback.
- A new arrangement may extend the time payments continue or increase the overall amount paid.
- Payoff figures can change, and old payment deductions may continue until each payoff is processed and confirmed.
- The terms are set by the funding partner, not Goldhour. Review all written terms and confirm any unclear detail before signing.
Compared to the others
How it stacks up.
vs. Keeping existing advances as they are
Keeping them avoids replacing the current arrangements, but leaves their separate schedules in place. Consolidation may combine balances under a new schedule, with new terms and possible additional total cost.
vs. Taking a separate additional advance
A separate advance adds another obligation while existing balances continue. Consolidation directs some or all of the new funds to old payoffs, so compare the remaining cash and the new total payback with the separate-payment option.
vs. Refinancing without additional cash
A refinance may be used only to settle existing balances. If the new funding amount is close to the required payoffs and charges, little or no new cash may reach the business.
vs. Using business cash to pay down balances
Paying balances from available business cash may avoid a new funding arrangement, but uses cash that could be needed for operations. Compare the cash-flow effect and written exit terms of each option.
Ask before you sign
Six questions worth asking.
- What is the exact payoff amount for each existing advance, and how long is that amount valid?
- How much of the new funding amount goes to each old balance and to each listed fee?
- Exactly how much new cash will reach my business after payoffs and charges?
- Will the funding partner pay the old providers directly, or do I need to handle any payoff?
- What is the new total payback, payment amount and frequency, and term?
- What do the exit terms say, and when should existing payments stop after payoff?
Have these ready
- Current statements or contracts for each existing advance.
- Written payoff figures and their valid-through dates.
- Recent payment schedules and confirmation of payments already made.
- Business bank account details and recent business account activity, if requested by the funding partner.
- A clear view of upcoming business expenses and the payment amount your cash flow can manage.
- Questions about direct payoff, payment timing, fees, and exit terms.
Questions
What does consolidation of existing advances mean?
It means a new funding arrangement is used to pay off some or all of your current advance balances. The new arrangement has its own payment schedule, total payback, term, and exit terms.
Will I receive the full amount shown as funding?
Not necessarily. Payoffs for existing balances and any listed charges are deducted or allocated first. The remainder is the potential cash to your business, and it may be less than expected or zero.
How is cash in hand worked out?
Start with the new funding amount, then subtract the payoff amounts and applicable charges shown in the written offer. Confirm the exact net amount and payoff figures with the funding partner before signing.
Does consolidation always lower my payment?
No. The new payment depends on the partner's terms and schedule. Even if the payment is lower or there is one schedule instead of several, the total payback could be higher or payments could continue for longer.
Can I consolidate without taking additional cash?
An arrangement may be used mainly or entirely to pay existing balances. Ask for a clear breakdown showing the funding amount, each payoff, listed charges, and any cash remaining for your business.
Who pays off my current advance providers?
That depends on the written offer and the funding partner's process. Confirm who sends each payoff, when it is sent, and how you will receive proof that the balance was settled.
What if payments to an old provider continue after payoff?
Check the payoff confirmation and contact the provider and funding partner promptly. Keep records of the payoff and any later deductions, and ask how and when any excess payment will be addressed.
How can Goldhour help me compare a consolidation offer?
Goldhour Capital is a brokerage that matches owners with funding partners. We can provide a plain-English breakdown of the offer, including cash that lands, fees by name, total payback, payment, term, and exit terms, and your named specialist stays with you before and after funding.
Make the most of the light.
One short application. One company calls you. Every offer laid out in plain English before you sign.