Stacking: what it is and when to be careful
"Stacking" means taking a new advance while you still have one or more open. Sometimes it helps; sometimes it squeezes your cash flow. Here's how to think about it.
Why funders care
Every open advance takes a slice of your daily deposits. The more slices, the less room the business has to operate, so fewer funders will add another position as the number of open advances grows.
When it can make sense
If a new opportunity will clearly bring in more revenue than the added payments cost, such as a big contract or a seasonal rush, an additional advance can be worth it.
Warning signs
If you're taking a new advance mainly to make the payments on existing ones, slow down. Ask about a renewal or consolidation instead, which replaces existing positions rather than adding to them.
A simple check
Add up all your daily or weekly payments and compare them to your typical deposits. Our calculator shows what share of your monthly deposits a new advance's payments would take. We'll always be straight with you about whether another position fits.
General information only, not financial or legal advice. Every funder sets its own terms; your offer shows the exact numbers before you sign.