[freeprocessing]

In my opinion, the only lender that has the right to charge a stacking fee is a 1st position lender. Any other lender that stacks and then charges a stacking fee for getting stacked is ridiculous. Right or wrong?

[Chambo]

in moral concept, yes...but if there is a clause in the contract, and the merchant signed it? Well......

[Michael I]

In my opinion, the only lender that has the right to charge a stacking fee is a 1st position lender. Any other lender that stacks and then charges a stacking fee for getting stacked is ridiculous. Right or wrong?

wrong . everyone is stacking someone . the bank is stacking the creditcards he has , the equipment leasing is stacking the bank the invoice factoring is stacking them, the a lenders is stacking those 4 so what gives them the right any more than the others .
Now everyone has the right to put whatever they want in their contracts as long as the merchant is aware of it

[Kevin Henry-Seacoast]

Usually with equipment finance companies, banks, and /or factors there are UCC filings clearly defining their position and matches what security interest the lender, factor, equipment finance company has in their lending/factor agreement.

I have never seen a case of a factor "stacking" a line of credit or bank ABL facility or vice versa. I have seen equipment companies file UCC1s on companies when their only security interest should be the equipment. There are times when a bank has a UCC1 on a Company, but allows an equipment company or factor come in and carve out the assets being financed and this always requires an inter-creditor or subordination agreement. We have provided facilities for companies where the bank was really only financing the property and filed a UCC on all of the assets. They allowed us to finance the AR and Inventory and we put an inter-creditor agreement in place.

KH

KH

[Sachip24]

i remember swift charged a merchant 40k stacking fee....ach'd it right out of his account for stacking. They don't play

[WestCoastFunding]

i remember swift charged a merchant 40k stacking fee....ach'd it right out of his account for stacking. They don't play

Swift was ruthless with stacking fees.

[Onepointwhat]

Usually with equipment finance companies, banks, and /or factors there are UCC filings clearly defining their position and matches what security interest the lender, factor, equipment finance company has in their lending/factor agreement.

I have never seen a case of a factor "stacking" a line of credit or bank ABL facility or vice versa. I have seen equipment companies file UCC1s on companies when their only security interest should be the equipment. There are times when a bank has a UCC1 on a Company, but allows an equipment company or factor come in and carve out the assets being financed and this always requires an inter-creditor or subordination agreement. We have provided facilities for companies where the bank was really only financing the property and filed a UCC on all of the assets. They allowed us to finance the AR and Inventory and we put an inter-creditor agreement in place.

KH

KH

Lessors filing UCC1s definitely throws a wrench into everything. From my understanding, they often file UCC1s as backup, in case their operating lease is deemed to be a direct or capital lease by the courts. If that happens, the UCC9 (with just the security interest in the equipment) can be thrown out.

[Don Dolla]

lots of no stacking addendums on all kinds of paper. the fees are real. don't get caught!