[cashforbiz]

Is it possible? What are the consequences?

[J.Celifarco]

its definitely possible I have seen merchants try to do this many times.. This is the reason a lot of banks are asking for month to date screen shots prior to funding to make sure that a merchant is not trying to get double funded

[Andy]

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

[FUSIONCAPITAL]

Most of the times its the merchant taking in as much as they "think" they can afford because every merchant thinks they deserve a million for their business!! So they take a few small deals to make the total, but what they don't realize its more expensive to piece deals like this because every funder works independently.

[@jeannette]

The deal will almost always get declined. If the merchant is going to try to get double funded from the start, they need to be upfront with the funders so they can make the appropriate offers and send them to people that allow stacking. I have seen this many times with us recently where the merchant has a higher funding amount approved with us and they take the smaller amount first and we have to decline it.

[WhoisKingsley]

I see it a lot Jeannette... I don't know if it happens anymore but I seen multiple contracts and double funding and then another stack after 24 hours.

It's the result of a broker not knowing who qualifies for the deal, low offers (for stacking purposes for those lenders who work together), and multiple commission payouts.

On the Merchant's side- all they know is the combined amount, cost, and daily. Merchants are also getting smart with this too, using multiple brokers at once. I wish someone had an explanation and there was a way to simplify things.

[WhoisKingsley]

and Yes... What is the consequence???

I know merchants can be "blacklisted" but that doesn't fully help the situation. What can be done?

-Patiently waiting for change and regulations so half of the work I do will be worth something at the end of the day

[Tim]

I've heard of multiple bank loan applications that hit the desk synchronized to the second to 'avoid moral hazard', and they all went through. They could be called an entrepreneur, or a pirate.