Question 1: 2nd - 6th position is basically the same idea, but very often funders do not file liens (UCCs) on the business unless they are ready to / have already defaulted. So practically for a broker, it means who's actively funding the deal now. Is it first position UCC (factors need that on all of the AR), is it first position MCA (as in, there's already senior debt), or is it is looked at as a "position" behind another "position" that gets priced differently. Some funders will view Fundbox as a LOC and not a position, others will ignore it. Some funders will view monthly payments like LoanMe as a position, others will ignore all monthlies. When MCA and non-traditional funders say "we only do 1st position", it generally means "we only come behind senior debt, but not behind other MCAs", i.e. IOU and OnDeck.

Positions can be paid off in any order, and a 3rd position can become a 2nd just from the fact that the capital stack was changed because the 2nd position funder was paid off. Some funders will come in and pay off up to 2 positions.

Question 2: MCA is running on all cylinders, and I'd say that everyone who didn't go BK is back up and running post-COVID, post-PPP. BFS doesn't exist as BFS anymore, and Yellowstone rebranded as Fundry (and pull as under different brands like Green Funding). Principis was my favorite first position funder who really didn't make it out. PAR also didn't make it out, but that was for a completely different reason.