Stacking detection
MCA stacking detection: every existing position, by lender
Merchant cash advance (MCA) stacking is when a business carries more than one advance at once. Easify detects it from the bank statement itself, grouping each funder's debits under that lender's name. It also keeps advance funding out of true revenue, so you can price the next position against what the merchant already owes.
What is MCA stacking?
Merchant cash advance (MCA) stacking means a business takes a second, third or later advance while earlier advances are still being repaid. Each funder takes its own payments from the same account. The more positions there are, the less of each deposit is left to run the business, and the less is left to repay the next funder.
For a funder, the number and size of existing positions changes what can safely be offered. For a broker, finding positions before submitting avoids a decline, or a deal the merchant can't carry.
How stacking shows up on a bank statement
A stack leaves two kinds of fingerprint in a statement:
- Funding deposits: a lump-sum credit from a funder when an advance is paid out.
- Recurring payments: regular debits to the same funder, often under a processor or abbreviated name.
Reading these by hand means scanning hundreds of lines a month and recognising lender names that are often truncated or printed in odd ways.
How Easify identifies positions
Easify's own extraction engine reads every transaction on the statement. It then matches debit and credit descriptions to known funders and groups the payments under the lender's name. Because the statement is first balanced to its printed totals and running balance, the payments being grouped come from a complete set of transactions. A position can't hide in a missed page.
What you see for each lender
For every detected lender, the analysis shows:
- The lender name
- The debits attributed to that lender and their total
- Any funding deposit from that lender in the period
- Each lender's payments alongside true revenue, month by month
You can check any line against the source statement before you rely on it.
Funding deposits stay out of revenue
An advance paid into the account isn't revenue. Easify excludes MCA funding from true revenue, so a recent advance doesn't inflate the month and make the merchant look stronger than it is.
From positions to an offer
Once the positions are known, Easify relates them to revenue:
- Payment-to-revenue: existing MCA payments as a share of true revenue
- Debt-to-revenue: MCA funding received as a share of true revenue
The offer and funding calculator then models a new advance (amount, factor rate, term, payback and daily payment), so you can see what one more position adds. The method is explained step by step in the guide. Definitions of holdback, factor rate and MCA stacking are in the glossary.
Used by funders to price the next position and by brokers to match deals to lenders who accept the stack. Stacking detection is one part of Easify's MCA underwriting platform.
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FAQ
What is MCA stacking?
MCA stacking is when a business holds more than one merchant cash advance at the same time, with each funder collecting payments from the same account. It raises the share of revenue going to repayments and changes what a new funder can safely offer.
How do you detect MCA stacking from bank statements?
Look for recurring debits to funders and for lump-sum funding deposits from them. Easify does this automatically, grouping payments under each lender's name across every month you upload.
Does Easify show which lenders are already in the position?
Yes. Existing positions are listed by lender name, with the debits attributed to each lender and their total.
Are MCA funding deposits counted as revenue?
No. Easify excludes MCA and loan funding from true revenue, so a recent advance doesn't inflate the merchant's sales.
Can I see how a new advance affects the stack?
Yes. The offer and funding calculator models amount, factor rate, term, payback and daily payment against the merchant's true revenue and existing payments.