[Kevin Henry-Seacoast]

I don't think you do, and it happens all day every day - show me one "senior" lender that stopped taking payments and just decided to put the account into default because the merchant stacked?

And I was referring to the second part of your previous statement "The Senior Lender can sue because in most cases all the assets are secured." - regarding the assets being secured.

If you have a 1st position lender that has their money structured more like a "loan" then ok, maybe some assets are secured. You are talking about stacking - 1st position lenders don't stack - anyone who stacks would most likely be MCA and is buying receivables and securing future receipts, not assets.

Let's all just be honest... it happens every day and some lenders try to sue, most don't win and for the most part no body does anything about it.

Merchants stack themselves, no lender puts the account into default and stops taking payments.

Corporate turnaround poaches MCA ucc's and commits blatant tortious interference, no one does anything about it.

So what is your point, really?

Buying future receivables or receipts are assets that may be secured by another party.

Most Senior Lenders either don't know their customer has taken a cash advance or have ignored it not to upset the relationship because the client is current on payments. If things go sideways, you can cool believe the senior lender or bank will defend their position.