Glossary
What is Stacking?
Stacking means taking on multiple short-term loans or merchant cash advances at the same time, often from different providers. Each new advance adds another daily or weekly payment, and the combined payments can quickly exceed what the business's cash flow can support. Many short-term financing agreements prohibit additional financing without consent, so stacking can trigger a default. If you already have several advances, consider whether consolidation or refinancing would be more sustainable.
Example
A business takes a second advance to cover payments on the first, and soon is making two daily debits it cannot sustain.
Related funding
Working Capital: Keep payroll, inventory and operations moving.
Related terms
Questions about an offer? Your advisor will explain every term.