This belongs in Deal Bin, but regardless...

Why are you setting your client up to lose by putting them in 12 month deal for an inventory investment? If they are turning over $6MM a year and have 100% markup (for the sake of easy math), then they are turning $250M in inventory a month. Let's assume they have a $100k balance with the two lenders and the new lender will take them both out and give 10% of gross. That's a $600k advance and $500k in new money. $500k is 2 months of inventory turn. Why would you structure your deal so that your client is still paying off inventory 10 months after they sold it? Even being more generous and assuming it takes 6 months to turn the inventory, the math still sucks. That is why they are probably stacked already, and why they will be back in this spot again looking for another refinance or stack. Regardless of the assumptions in my math, financing inventory over 12 months is bananas, except in some edge cases. Credit 101 is match off the term of your loan to the use of funds. This deal fails that test.

You as the broker need to stand up to the merchant and tell them what this dynamic will do to their business and why it is problematic. Good luck.