[Cshoke]

So I've been working with this lender (No names!) that informed me that if a merchant has a 1st position with them and they get a 2nd position elsewhere they will be in breach of contract. (By the way, I remember specifically asking one of the principals of the company if they were fine with the merchant getting a 2nd position and they said 'yes, absolutely'. Unfortunately it was a phone conversation and not an email, because now they are backtracking and telling me they would never say that!) Anyway, is this common practice by a number of direct lenders? This lender is trying to tell me that all the major players in the MCA industry do this.

[Sean Cash]

That funder is correct on the breach claim. Welcome to 1st grade merchant cash advance.

[GRP Funding]

Even some of the stackers have "no stacking" clauses in their agreements.

[GoodCustomerService]

I hear its ok as long as you offer syndication on the stack to the 1st position funder.

[channin19]

I hear its ok as long as you offer syndication on the stack to the 1st position funder.

That is the definition of throwing good money after bad

[CreditGuy]

Be it in this industry, or any other involved with extending credit, any contract for such extension should contain some semblance of a Due on Sale or Encumbrance clause within the default section. Further protection against the borrower incurring additional debt can also be incorporated in the affirmative covenants section, which is what I suspect you are speaking about.

It sounds like nobody read the actual contract before it was signed. Perhaps you should read your contract before continuing on here, as what people say about this issue doesn't matter, only what is contained in the executed contract governing this particular transaction.

And to answer your question...yes.

[JSL23]

I am going to assume this is one of your 1st contracts...... To answer your question, Yes all the major Lenders do this. Maybe this Lender does 2nd positions themselves or will do add ons and thought that was your question. I don't think that one of the Principals would say "Yeah sure, go ahead and stack us, knock yourself out. Stack away!" You probably misunderstood.

[MCA]

I have to agree with others that either this is your first rodeo or you have a lot to learn about this business. No way a principal would say yeah go ahead and stack against us. The fact you don't know this probably leads me to believe this statement by the principal also never happened. Educate yourself before you hurt your merchants business or your reputation.

[Franklin]

Hard to believe the Username MCA was available up until 3 months ago. Cats on this forum be sleepin'.

I have to agree with others that either this is your first rodeo or you have a lot to learn about this business. No way a principal would say yeah go ahead and stack against us. The fact you don't know this probably leads me to believe this statement by the principal also never happened. Educate yourself before you hurt your merchants business or your reputation.

[Sean Cash]

Hard to believe the Username MCA was available up until 3 months ago. Cats on this forum be sleepin'.

lol we should've held an auction for vanity usernames on DF.

[mcaguru]

lol we should've held an auction for vanity usernames on DF.

[isaacdstern]

How much for the user name Mikeysweats ?