Help With Multiple Merchant Cash Advances

Why stacked advances become hard to manage

Each advance is usually negotiated on its own, based on your revenue at the time. When a second or third position is added, the new funder may not account for every existing remittance — so the combined daily or weekly debits can take a much larger share of revenue than any single agreement suggests.

Many owners take an additional advance to cover a shortfall caused by earlier ones. That can provide short-term relief, but it typically increases the total amount owed and the total payment burden.

Start with the full picture

Before evaluating any option, list every position in one place:

• Funder name and position (first, second, third…)
• Remaining balance or remaining purchased amount, if known
• Payment amount and frequency (daily, weekly)
• Whether payments are current, and any missed payments
• Key terms: reconciliation, default provisions, personal guarantees, confession of judgment

Paths owners commonly explore

Depending on the agreements and the business's finances, owners may look at negotiating with one or more funders (settlement or restructuring), requesting reconciliation where an agreement provides for it, refinancing or consolidating positions into a single obligation, or speaking with an attorney about legal options. Each has trade-offs, and funders are not obligated to agree to changes.

Our stacked MCA payment calculator can total every advance and show what share of monthly revenue is committed to payments.