Yes it happens fairly frequently. As said above, that is a big reason for the MTD or login requests . Consequences are that if the funder finds out they will kill the deal. Because funder approves the file on the basis that the merchant can afford XXX payments, and by taking an advance from 2 funders at once they now have YYYY payments, which is much higher payments than either funder thinks the merchant can afford, and puts both funders at risk