Second Position & Stacking
Having an existing advance doesn't close the door on additional funding — but it changes the math. Three paths exist: second position, buyout/renewal, or waiting for paydown. Which one makes sense depends on how much of your current advance you've repaid and your net deposit volume.
Yes, you can get additional MCA funding with an existing advance — the three paths are second position (new advance on top of existing), buyout/renewal (new funder pays off old balance and advances fresh capital), or waiting for 50%+ paydown before renewing. The right path depends on your net deposit volume and how far along you are in repayment. Second position carries higher factor rates and smaller amounts; buyouts offer better terms.
Same business, two different paths — see how the numbers change.
Higher rate (1.40 factor), smaller amount — but available now without paydown.
Better rate (1.25 factor), significantly more capital — requires 60% paydown first.
The eligibility criteria are different for each path.
What disqualifies you from additional MCA (second position or buyout)
Yes — this is called a second position advance. The critical factor is net deposits: after your current advance payment is deducted, do you have enough remaining deposit volume to support a second payment? Most second-position funders want to see at least $8,000–$10,000 in net monthly deposits after the existing advance payment.
Second position MCA is an advance funded on top of an existing MCA. The new funder takes second position — they're paid after the first advance's daily remittance. Second position advances typically carry higher factor rates (1.35–1.49) than first position (1.20–1.35) to compensate for the additional risk.
Second position amounts are calculated on net deposits — monthly deposits minus the existing advance remittance. A business with $25,000/month in deposits and an existing $12,000/month remittance has approximately $13,000 in net deposits. At a 0.75x multiplier, that's a second-position offer around $9,750.
A buyout (also called a renewal) occurs when a new funder pays off your existing advance balance and issues a new, larger advance — typically when you've paid 50%+ of the original. Example: $20,000 advance, $12,000 paid back, $8,000 remaining. New funder pays off $8,000 and funds you $27,500 as a fresh first-position advance.
Stacking refers to taking multiple MCAs simultaneously from different funders. While technically possible, some MCA agreements contain anti-stacking clauses that constitute default if violated. Always review your current agreement before pursuing a second position — or call us and we'll help review it.
Yes. Completing or nearly completing repayment then applying fresh results in the best rates and highest advance amount with zero legacy obligations. This is the ideal path when timing allows — full paydown gives you first-position access on the full deposit base.
Tell us your current advance balance, daily payment, and monthly deposits. We'll identify your best path — second position, buyout, or strategic paydown timing — and give you a real estimate.
Or call/text: 330-238-3003
