MCA field guide
First-position versus stacked funding
How position affects payment burden, lender eligibility, payoff strategy, and submission quality.
Position describes payment priority in practice
A first-position funder is generally the first active sales-based financing obligation visible in the bank activity. A stack adds another obligation before the earlier balance is fully resolved. Terminology and contract rights vary, so confirm the actual existing agreements.
Why later positions narrow the lender pool
Each additional payment reduces available cash flow and raises default correlation. Many lenders publish a maximum funded position, while others consider only payoffs, consolidations, or specific remaining-balance percentages.
Submit the full debt picture
Include current funder names, original amounts, current balances, daily or weekly payments, start dates, and payoff letters when requested. Hiding an existing position creates avoidable declines and damages submission credibility.
Methodology and corrections
This guide distinguishes calculations, common industry practice, and lender-specific policy. Criteria should be confirmed from the dated source on each lender profile. Report an error through the correction policy.