How stacking builds up
A first advance solves a short-term problem. When the daily withdrawals squeeze cash flow, a second funder offers more money, sometimes knowing the first is still open. Within months, several funders may be pulling payments from the same account every business day.
Many MCA agreements prohibit taking additional financing without consent. Stacking can therefore create default claims under more than one contract at the same time.
Why a coordinated plan matters
Negotiating with one funder at a time, without a plan for the others, often just shifts pressure from one account to the next. A coordinated approach looks at all obligations together:
- Total daily and weekly withdrawals compared with actual deposits
- Which agreements carry personal guarantees, UCC filings or confessions of judgment
- Which funders are most likely to take aggressive action
- What overall payment level the business can sustain
Warning signs you are over-stacked
- MCA withdrawals take more than a quarter of your monthly deposits
- You are taking new advances to make payments on old ones
- You regularly have insufficient funds on withdrawal days
- You are receiving calls from new funders offering "consolidation"
Use our MCA cost calculator to see how much of your revenue goes to advances.
Questions
Is an MCA consolidation loan a good idea?
Sometimes, but be careful. Some so-called consolidation offers are simply another advance with a longer term and higher total cost. Have the terms reviewed before signing.
Can all of my funders be handled together?
We review every account and build one plan, but each funder decides separately whether to participate.