Stacked MCAs: Resolving Multiple Merchant Cash Advances
Stacked MCAs occur when a business takes on multiple merchant cash advances, often from different funders, with daily or weekly payments all hitting the same account. As positions accumulate, a business can find itself using today's revenue to satisfy yesterday's financing.
REVIEW MY MCA SITUATIONHow Stacking Happens
Stacking often begins with a single advance that becomes difficult to maintain. To keep up, a business takes a second advance, then a third. Each new position adds another daily or weekly withdrawal, increasing the total drain on operating cash flow.
Why Stacked Positions Are Hard to Sustain
When several funders withdraw from the same account simultaneously, the combined payments can consume a large percentage of deposits. This leaves little working capital for payroll, inventory, rent, and ordinary operations — even when the business is generating real revenue.
Strategies That May Help
Depending on revenue and circumstances, potential strategies may include restructuring, payment modification, consolidating positions through qualified refinancing, or negotiated resolution. The right approach depends on the number of positions, balances, and the business's financial condition.