"Stacking" means taking a second, third or fourth advance while earlier ones are still being repaid. Some funders encourage it. It's one of the fastest ways a healthy business gets into cash-flow trouble.
How it happens
A business takes an advance and puts it to good use. A few months later, cash is tight, and another funder offers more money right away. The second payment starts on top of the first. Then the cycle repeats.
Why it's dangerous
Each advance takes its own daily share of your sales. Picture a business with $8,000 in daily card sales. A first advance takes 10%, or $800 a day. A second advance adds a fixed $1,000 daily withdrawal. Now $1,800 a day, more than 22% of sales, goes to funders before payroll, rent or inventory.
One slow week can turn that into a crisis, which often leads to a third advance just to cover the first two.
Warning signs
- Taking new funding to make payments on existing funding
- Daily payments that leave little cash at the end of the day
- Funders calling with new offers soon after you've signed
- Losing track of how many daily withdrawals you have
Why RPI won't stack
We fund in first position only. If you have an existing advance, it generally needs to be paid off at funding, and we can look at whether an RPI advance can cover that payoff. Our job is to fund your business, not your next advance.
If you're already stacked
List every advance with its daily payment and remaining balance, stop taking new ones, and talk with an accountant or financial advisor about a plan. Seeing the full picture is the first step out.