Learn / Stacking
A second and third advance can feel like breathing room. Here is how positions add up, and how a renewal can mean paying a factor on money you already owed.
Most merchants with cash-flow trouble from one MCA are offered a second one. Then a third. Each funder sees only its own debit. You see all of them leave the same account.
Each advance against the same business is called a position. The first funder is in first position, the next in second, and so on. Later funders usually charge more because they get paid after the others, and many agreements have an anti-stacking clause that makes taking another advance an event of default.
Each holdback looked manageable on its own. Together they take 13% of every dollar you deposit, before payroll, rent or inventory. When sales dip, every one of them should reconcile, and none of them will unless you ask.
A renewal is a new advance from the same funder, usually offered once you have paid down part of the first. The new funding pays off what is left on the old one, and you keep the rest.
In this example you take home $27,000 of new cash and now owe $140,000, including a new factor on the $70,000 you already owed. Some funders discount the old balance on renewal. Ask for the payoff figure in writing and compare it with what you have paid.
Connect your bank (read-only) and add your agreements. Your reconciliation report is usually ready the same business day.
Check my MCA →Education only, not legal advice. Agreements differ; your contract's exact wording controls.