legal
Stacking
Stacking is taking on multiple business cash advances or revenue-based advances simultaneously, typically without disclosing them to each funder.
Last updated Reviewed by ICG Funding
Definition
What it means.
Stacking stresses daily cash flow because each advance pulls its own ACH from the operating account. Most funding agreements explicitly prohibit stacking, taking a second advance without consent triggers default on the first.
Stacking is almost always a symptom of an underlying cash flow problem. Debt consolidation into a single longer-term product is usually the right solution. ICG underwriting reviews existing debt obligations during application specifically to prevent accidental stacking.
Now what?
Get an offer that accounts for stacking.
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