7 Things Nobody Told You Before You Stacked Your MCAs

The information was available. The people selling you the advance had no incentive to provide it.

The broker who arranged the second advance, and the third, and possibly the fourth, was compensated by commission. The commission is a percentage of the funded amount. The larger the advance, the larger the commission. The broker's income increased with each layer of the stack. Your financial position deteriorated with each one. These two facts are not coincidental. They are structural.

Here are seven things the broker did not mention.

Factor Rates Compound, Not Cancel

Each new advance carries its own factor rate applied to its own principal. If a portion of the new advance pays off the old one, the factor rate applies to the payoff amount as well as the new capital. You are paying a premium on money that was used to retire a premium. The total cost of capital does not consolidate. It stacks, the same way the advances do.

The Daily Withdrawal Is Not Negotiable After Signing

The daily ACH amount is fixed at origination. It does not adjust for revenue fluctuations (unless you invoke reconciliation, which requires a formal process the funder will not remind you of). Each new advance adds a new fixed withdrawal. The combined daily debit ratchets in one direction.

Your Personal Guarantee Multiplies

Each MCA agreement includes a personal guarantee. If you carry four MCAs, you have signed four personal guarantees. Your personal liability is not the largest of the four. It is the sum of all four.

UCC Liens Stack

Each funder files a UCC-1 financing statement against your business assets. Multiple filings create overlapping claims. The first funder (by filing date) has priority. The rest compete for whatever remains. Your business assets are encumbered multiple times over.

The SBA Will Not Rescue You

As of June 2025, SBA 7(a) loans cannot be used to refinance MCA debt. The institutional exit that thousands of businesses used before this rule change is closed.

Confessions of Judgment Multiply

If each agreement contains a confession of judgment, each funder holds a pre-signed authorization to obtain a judgment without your knowledge. Four MCAs means four potential judgments, four potential bank freezes, four separate enforcement actions.

You signed four confessions. Each one is a loaded instrument pointed at the same account.

The Broker Earned a Commission on Every Signature

DEFENSE TEAM SPOTLIGHT

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The broker's total compensation across four advances may exceed $30,000. That compensation was priced into the factor rates you are paying. The broker had no legal obligation to advise you against stacking, no financial incentive to recommend an attorney, and no consequence for the outcome.

What nobody told you before you stacked is what an attorney would have told you: that the second advance was avoidable, that the first agreement was challengeable, and that the legal defenses available before the stack was built were more valuable than the capital the stack provided.

Those defenses, for the earlier agreements, are gone. The defenses for the current agreements may not be. An attorney can determine what remains, what can be challenged, and what the path forward looks like from where you stand today.

The consultation is the thing nobody told you to do first. It is the thing to do now.