Funding Position: Meaning in a Merchant Cash Advance
A funding position is where an advance sits in line against the same sales. The first advance is the first position, a second one taken while it's open is a second position, and so on. Each later position takes its payment from what's left after the earlier ones, so it carries more risk and usually costs more.
Where does it show up?
It isn't a contract term so much as how funders describe your file. It shows in your bank statements as separate funder debits and in UCC searches.
How do you know which position you're in?
Count the advances already open on the account when the new one funds. The first open advance is first position, the next is second, and so on. Paying off an older advance moves the newer ones up.
What does it look like in practice?
A first position takes $1,500 a week. A second adds $1,000. A funder looking at a third reads $2,500 already leaving each week and decides whether a third payment fits. See second position.
Which owner question goes with this term?
How many MCAs can I have at once? Answers to the questions owners ask about this term, with what to ask the funder.
A term on your offer you don't recognize?
Send us the line and we'll tell you what it means. Call 877-FUND-654 with any question. We call you back, usually the same business day, and we always talk with you before we shop your file.