A consolidation funder pays off your existing positions and gives you one payment in their place. Spreading the balance over more time lowers the daily or weekly payment, which is the point.
The trade-off is total cost. You usually pay the full remaining balances on the old deals, plus the cost of the new one on everything it covers. A lower payment can also make it tempting to stack again, which leaves you where you started with a bigger balance.
Example: You owe $30,000 at $500 per business day and $20,000 at $400. A $55,000 consolidation at a 1.30 factor rate over 9 months pays both and gives you $5,000. Your payment falls from $900 to $378.31 per business day, but you now owe $71,500 instead of $50,000.
Compare the new payment and the new total. Run your own numbers in the consolidation calculator before you sign.