Question 1

What does position mean in an MCA?

Accepted Answer

Position is the order of your open advances. The first advance is first position, a second one taken while the first is still open is second position, and so on. Later positions get paid from the same deposits after the earlier debits, so each one takes a closer review and usually costs more.

Question 2

What is MCA stacking?

Accepted Answer

Stacking means taking a new advance while another is still open. Each one adds its own payments to the same deposits, and it's the main way MCA debt gets out of hand. Owners often stack to cover the first advance's payments, which only adds cost. If you're thinking about it, look at the alternatives on this page first.

Question 3

How many MCAs can I have at once?

Accepted Answer

There's no set legal limit, but each funder decides how many open positions it will accept, and many contracts bar new advances while theirs is open. The real limit is cash flow: add up every daily and weekly debit and compare it with your average daily deposits. The stacked payment calculator does that math for you.

Question 4

Can I get a second position MCA?

Accepted Answer

Yes. Some funders buy second position files when deposits can clearly cover both payments. Expect a closer look at your existing debits, your balance after payments and how the first advance has been paid. The price is usually higher than a first position advance, so check whether the new cash is worth the added payment.

Question 5

Can I get a third position MCA?

Accepted Answer

Fewer funders take third position, and the price is usually higher. Your deposits have to carry all three payments with room to spare. Before taking one, ask whether a consolidation or a reverse consolidation would lower your total payments instead of adding a third payment to the same account.

Question 6

Do I have to tell funders about my other advances?

Accepted Answer

Yes. Funders see existing debits in your statements and in UCC filings, and they'll ask. Hiding one can end an offer, or breach the new contract after you sign. Tell us every open advance with its balance and payment, and we send the file only to funders whose programs take that position.

Question 7

What is an anti-stacking clause?

Accepted Answer

An anti-stacking clause is a contract term that bars you from taking another advance while the current one is open. Breaking it can count as a default, which can bring fees or a demand for the full balance. Check your existing contract before you take on another advance, and ask us if you're not sure what yours says.

Question 8

Will my funder find out if I take another advance?

Accepted Answer

Usually, yes. A new advance shows up as a new debit in the bank account your funder already sees, and many funders also check UCC filings. If your contract has an anti-stacking clause, taking another advance can count as a default. Read your current contract first, and talk to your funder if you need more money.

Question 9

What can I do instead of stacking another advance?

Accepted Answer

Look at consolidation, reverse consolidation, a renewal with your current funder, or a reconciliation request if sales have dropped. Each has its own cost, so compare the total payback and your weekly cash flow for each one. Sometimes the cheapest move is cutting costs for a few weeks rather than taking any new money.

MCA Stacking and Positions FAQ

Positions and stacking