Funders Go on the Offensive Against Stackers

As an industry civil war rages over the practice of “seconds”, “thirds”, and “fourths”, some funders seek to bring the practice of stacking to its knees. A stack is a merchant cash advance or daily repayment obligation that is stacked on top of a business’s existing one. Merchants that already have a carefully calculated daily drain on cash flow are laden with another one.

Funders that denounce the practice view it as endangering the merchant’s livelihood as well as their own. It may be a breach of trust or ethics, but at least one funder is calling it something else, a willful intent to interfere with their contracts.

DailyFunder obtained a copy of a letter addressed in April that was meant to ward off funders believed to engage in stacking. The originator has been redacted.

With a line being drawn in the sand, will stackers begin to sing a different tune? Join the discussion on DailyFunder’s forum at dailyfunder.com.

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