You have sold your future revenue three times. The buyers are all expecting delivery.
The situation you are in has a name in the industry. Stacking. The word suggests organization, one thing placed on top of another. The reality is less orderly. Three or more MCA funders are withdrawing from the same bank account on overlapping schedules, each pulling a fixed daily amount that was calculated based on your revenue at the time of each signing, not your revenue now. The total withdrawal is almost certainly more than your business can sustain. If it were not, you would not be reading this.
What follows are seven things you need to understand, not as general principles, but as specific realities that apply to businesses carrying three or more simultaneous MCA obligations.
Your Funders Are Competing, Not Cooperating
Each funder operates independently. They do not coordinate withdrawal schedules, they do not share information about your other obligations (though some have learned to check UCC filings before funding), and they do not defer to one another in the event of default. When the account balance drops below the combined daily withdrawal total, the funder whose ACH processes first that morning receives payment. The others do not.
This is not an orderly creditor hierarchy. It is a race, and the funders know it. The first to obtain a judgment in the event of default secures priority over the others. This incentive accelerates legal action. A funder who might otherwise negotiate has strong motivation to file first, freeze the account, and claim what remains before the other funders arrive.
You are not dealing with a single creditor problem. You are dealing with a coordination problem among creditors who have no incentive to coordinate.
At Least One of Your Agreements Is Probably Challengeable
In our review of stacked MCA portfolios (cases involving three or more simultaneous advances), we have found that at least one agreement in the stack contains a provision that is vulnerable to legal challenge. The vulnerability varies: an illusory reconciliation clause that the funder never honored, a confession of judgment filed in a jurisdiction that lacks authority over the merchant, a personal guarantee that was misrepresented at signing, or an agreement whose structure (fixed daily payments with no genuine revenue adjustment) supports reclassification as a loan.
The Yellowstone Capital settlement in January 2025 confirmed what practitioners had argued for years: that many MCA agreements labeled as purchases of future receivables were, in operation, high-interest loans. The billion-dollar judgment and the cancellation of over five hundred million in merchant debt did not emerge from a novel legal theory. It emerged from the recognition that the contracts said one thing and the funders did another.
Not every agreement in the stack is enforceable. But you will not know which one until someone reads them.
The SBA Cannot Rescue You Anymore
Prior to June 2025, business owners carrying MCA debt could apply for an SBA 7(a) loan and use the proceeds to refinance their advances. This was, for many businesses, the only viable exit from a stacking spiral. SBA rates between ten and thirteen percent replaced effective MCA APRs that routinely exceeded one hundred percent.
That path is closed. The SBA amended its Standard Operating Procedures to explicitly prohibit the use of 7(a) loan proceeds for refinancing MCA debt or factoring agreements. The stated rationale was rising default rates among borrowers who refinanced MCA debt with SBA loans and then took on new MCA obligations. The policy is understandable from the SBA's perspective. From the perspective of a business owner carrying three stacked MCAs, it closes the most accessible institutional exit.
The inability to refinance through the SBA does not eliminate other options. It eliminates the easiest one. What remains are legal strategies, negotiated settlements, and, in some cases, bankruptcy protections. None of these are as simple as an SBA application. All of them require professional guidance.
Your Personal Assets Are Exposed