[jotucker1983]

I don't agree that all stacking is wrong . If an a lender caps a guy doing 900k a month at 150k because he's in construction industry is it wrong for another lender to fund 300k on top of them ?

In terms of cashflow purposes, it depends. What are his average bank balances and monthly ending balances? Does this guy have a good amount of deposits or very few deposits? The Construction industry is an off industry with most times unstable revenues/deposits, and that's usually why their approvals are capped if they are even able to be approved at all.

The issues in terms of cashflow purposes is when the cash advance payments (1st - 5th positions) are taking too much of the merchant's monthly gross sales. Cash advance payments shouldn't go over 15% of the monthly gross, preferably no more than 10%. It gives the merchant breathing room.

Arguments can be made for a 2nd position on a case-by-case basis, but ideally, the merchant needs to just start dealing with the amounts they got from their 1st position lender. The merchant needs to fix whatever operational "issues" they are having to be in a situation of needing literally another "bridge type of loan" before the 12 month term on the first one was over.

On a 12 - 15 month deal (the ones that are usually stacked on) the merchant is up for renewal or an add-on in 6 - 7 months, why is it that the merchant even needs more money faster than that? He needs to fix whatever is wrong with his operations.