Stacking

Stacking happens when a business takes a second (or third) MCA before the first is repaid, often to cover the cash flow strain the first advance’s holdback is already creating. Each provider is holding back a percentage of the same daily or weekly revenue, so the combined holdback across two or three stacked advances can consume a much larger share of daily sales than any single advance would on its own.

Stacking isn’t automatically a mistake, some businesses use it deliberately for a short-term need, but the combined daily cash flow impact is easy to underestimate when looking at each advance’s terms individually rather than the total holdback across all of them.