# Stacking: what it is and when to be careful

Source: https://revenuenotcredit.com/guides/stacking-merchant-cash-advances

"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](https://revenuenotcredit.com/factor-rate-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. Every funder sets its own terms; offers show exact numbers before signing._