Fundnode tool

Stacking risk assessment

Considering a second MCA while your first is still active? This tool assesses whether stacking would push your business into structural failure risk — the pattern that produces 60%+ default rates within 12 months.

Brokers selling second-position MCAs won't show you this math. Most stacking decisions are made by merchants who don't realize the cash flow math is broken.

Your situation

Stacking risk assessment

CRITICAL

Risk score: 160 / 200+

Daily ACH at 20.0% of daily revenue

Cash flow cannot sustain this. NSF cascade is near-certain within 60 days. This is the structural pattern that fails businesses.

No NSFs in last 90 days

Clean payment history. Indicates current ACH is being managed.

6 months remaining on first MCA

Long remaining term on the first MCA means stacking would create extended dual-payment burden. Consolidation almost certainly cheaper.

Anti-stacking contract violation

Most MCA contracts make taking a second MCA an automatic default on the first — even if you're current on payments. The first funder can accelerate the full balance immediately. See /contracts/anti-stacking.

What to do instead

If the risk score is medium or higher, stacking is likely to accelerate failure rather than bridge the gap. Alternatives, ranked by cost:

  1. Talk to your current funder about consolidation. Most direct funders will negotiate a larger advance that pays off the current balance, eliminating the stacking. Net-funding renewal is materially cheaper than stacking.
  2. Open a Bluevine or Fundbox LOC. If you qualify (12+ months operating, 625+ credit), an LOC is materially cheaper than a second MCA and typically doesn't trigger anti-stacking provisions.
  3. SBA Express loan. $50K-$500K, prime + 4.5-6.5%, much cheaper than MCA. 5-10 day underwriting.
  4. Vendor terms renegotiation. Often free; can free up the working capital you would have borrowed.
  5. Wait for first payoff. If you have under 90 days remaining on the first MCA, waiting is usually the cheapest path.

Methodology

Risk factors are scored against industry-standard cash-flow thresholds: the 7% rule on daily ACH vs daily revenue, NSF cascade thresholds (3 NSFs in 30 days as typical default trigger), and the structural fact that most MCA contracts include anti-stacking provisions that make a second MCA an automatic default on the first.

See our deep-dives: anti-stacking clause analysis, the 7% rule, why stacking fails.

This is a screening tool, not financial advice. For specific situation analysis, consult a small-business attorney or certified financial planner.