Second Position Merchant Cash Advance for Bars and Taverns
A bar with one advance can often add a second, sized around the first payment and how weekend card batches hold up. The second funder offers less, charges more and looks hard at midweek deposits. It fits a defined need with a clear payback, like a patio build before summer, not a bar covering its first payment.
Two debits against a bar's week
Weekends carry the load
Friday and Saturday bring most of the revenue. Daily debits, though, land Monday through Friday, when card batches are thinnest.
Slow seasons hit harder
After the holidays and in the slower summer weeks for bars away from tourist areas, two fixed payments take a bigger bite.
What two advances take in a slow month
Here a bar with $70,000 in deposits pays $7,000 a month on advance one; advance two, $21,000 at 1.38 for 6 months, adds $4,830.
| Month | Deposits | First advance only | Both advances |
|---|---|---|---|
| An average month | $70,000 | 10.0% | 16.9% |
| A slow month, 19% under average | $56,700 | 12.3% | 20.9% |
Combined, 20.9% of deposits leave in a slow month. QCEW job counts for drinking places (NAICS 722410) barely move (5.1 points top to bottom), so the dip here is hypothetical; swap in yours.
Before adding a second funder
- Read the first contract for a clause on new financing.
- Ask your current funder about adding to the first advance.
- Add up every fixed payment, including rent, distributor terms and loans, against a slow week.
Good uses for a second position
Seasonal buildout
A patio, rooftop or outdoor bar before summer can pay back quickly if it's ready for the busy months.
Event-driven inventory
A big sports season or local festival brings a spike in sales and needs inventory first.
Poor uses
Covering the first advance's payments or slow-season payroll with a second advance usually leads to a stack that needs consolidation.
What the second funder looks for
Weekend and weekday deposit patterns, the first advance's balance and payment history, cash deposit consistency and any liquor license issues. A bar with steady card revenue and clean payment history makes the best case.
Timing matters
A second advance taken in spring for a patio has summer deposits behind it. The same advance taken in November runs straight into the slow weeks after the holidays. Line up the term with the busy season that's meant to repay it, and keep it short.
Quick answers
Can a bar take a second merchant cash advance?
Often, yes. The second funder reviews your deposits, your first advance's balance and payment, and how steady weekday revenue is. Check the first contract for restrictions, and ask your current funder about an increase before adding another.
What is a good use for a bar's second position advance?
A defined project with a clear payback, like a patio before summer or inventory for a major event. Using a second advance to cover the first advance's payments or slow-season payroll usually leads to a stack.
Why do weekday deposits matter so much for a bar's second advance?
Daily debits usually land Monday through Friday, when card batches are smallest. The second funder checks whether weekday deposits can carry both payments, since weekend revenue doesn't land until the following week.
More for bars and taverns
- Same-day merchant cash advance for bars and taverns
- MCA consolidation for bars and taverns
- Revenue-based financing for bars and taverns
- Business line of credit for bars and taverns
- How funders read bars and taverns
- Second position MCA: how it works
Run your own numbers with the stacked payment calculator.
Want to see what fits a bar like yours?
Tell us your slow months and your open advances, and we'll shop the file with funders whose programs fit. 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.