Signs Multiple Merchant Cash Advances Are Straining Your Cash Flow

Taking a second or third advance to cover the payments on an earlier one is sometimes called "stacking." It can feel like a short-term fix, but overlapping remittances can add up quickly.

Warning signs to watch for

• You are using new advances to cover remittances on existing ones.
• Daily or weekly debits regularly leave too little for payroll, rent, or inventory.
• You are delaying payments to vendors or taxes to keep up with remittances.
• You are unsure of the total remaining balance across all of your advances.
• Your revenue has changed but your remittances have not.

Steps to consider

Start by gathering every agreement and listing each funder, remaining balance, remittance amount, and frequency. Reviewing the actual numbers in one place often clarifies the situation. Check whether your agreements include reconciliation provisions, and consider speaking with a qualified professional before signing anything new.

Acting earlier generally leaves more options available than waiting until accounts are in default. If this sounds familiar, reach out to discuss your situation.