Will My Funder Find Out If I Take Another Advance?
Almost always, yes. The new advance's deposit and its daily or weekly debit show up in the same bank account your first funder watches, and a new UCC filing is public. If your contract has an anti-stacking clause, taking another advance can be a default. Tell funders about every open advance. A disclosed position reads far better than one they find.
How does another advance show up?
- A large incoming deposit from a funder.
- A new recurring debit with a funder's name.
- A new UCC-1 filing against the business.
- Questions from a funder doing a mid-term check.
Will a new UCC filing tip off the first funder?
It can. A new funder usually files a UCC statement, and many funders run UCC searches or watch your bank data. Even without a search, the new deposit and the new daily debit show on the statements your first funder already reads.
What does this look like with real numbers?
Say your first debit is $400 a day and a new one adds $250. Your first funder sees $650 leaving daily on your next statement. If its contract bars stacking, it can call a default on the whole remaining balance. Disclosing it first, or asking for consent, keeps that off the table.
What does disclosure look like?
When you ask for a new advance, list every open one: the funder, the balance, the payment and how often it comes out. Funders compare that list with your statements and with UCC records. A file that matches is read faster, and a file that leaves one out is usually declined, and it can breach the new contract's promises on day one. If your first contract has an anti-stacking clause, read it with the new offer before you sign.
What should you ask the funder?
- Does my contract have an anti-stacking clause?
- Would you consent to a second position?
- Would you fund more instead?
- What happens if I refinance with someone else?
Where can you check your own numbers?
The short version is in the Positions and stacking FAQ. To check the numbers on your own advance, use the stacked payment calculator.
Want a second look at your advance?
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.