Question 1

What is MCA Stacking?

Accepted Answer

MCA stacking refers to obtaining multiple merchant cash advances from different lenders. First position MCAs are paid off first, then second position, and so on. This allows businesses with strong cash flow to access more capital.

Question 2

How do factor rates work in stacking?

Accepted Answer

Factor rates increase with each position. First position MCAs typically have rates between 1.15x-1.35x. Second position rates are 1.25x-1.50x. Third and higher positions carry even higher rates or may not be approved.

Question 3

When does stacking make sense?

Accepted Answer

Stacking makes sense when you need more capital than one MCA provides, have consistent daily cash flow, are using capital for revenue-generating activities, and your total daily remittance does not exceed 50% of average daily revenue.

MCA Stacking Position Calculator