Glossary
Stacking
Taking additional advances while earlier ones are still being repaid.
Stacking is taking a second, third, or later advance while previous ones are outstanding. Each new position is priced higher for its subordinate risk, the combined debits compete for the same cash flow, and the first agreement usually prohibits it. Why stacking is the quiet killer.
How it appears in a contract
Covenants prohibiting additional financing without consent; cross-default clauses; UCC-1 filings that make positions visible.
Worked example
Two advances debiting a combined 20% of deposits, before rent and payroll, is a business funding its funders.
Illustrative figures on stated assumptions; not quotes.
What to ask
- Does my current agreement prohibit additional financing?
- What is the combined weekly debit as a share of my slowest week?
- Can the positions be consolidated into one longer, cheaper instrument?
Related terms
Renewal · UCC-1 · Debt consolidation · all terms
Educational definitions, not legal advice. Contract terms and their legal treatment vary by provider and state; read your agreement and ask a professional.
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