Shows a lack of carelessness on the funding companies part and the merchant to some extent (stacking), most funders trying to do good business will stay within the percentages of 2nd-3rd positions (15-30%) max MCA collection. You have the predators who don't care and will go over the 30% threshold with no regard for the business in question. I've had merchants with 2 positions already at 42% MCA. An honest merchant caught in this 42% MCA collection has the option of either defaulting cause they start to overdraft too much of their monthly revenue is taken or take out another MCA advance and buy more time with the hopes of a big advance taking everyone out and having 1 payment (pipe dreams). Most I've seen with the help of smooth talking brokers fall into this trap and are stuck in a cycle of MCA's were one pays the other off every other month taking on a new advance. Ive seen many cases like this and it has gotten worse over the years. No one talks about all the fees and secondary brokerage fees that also put the funding companies money at risk some of these as high as 8% at closing. Yes eventually this bubble will burst too...