Glossary · Underwriting
Positions
A position is one open cash advance on a merchant's account, numbered in the order taken: first position, second position and so on.
Also called MCA positions, first position, second position, lien position
The first open advance is the first position, the next one the second, and so on. Funders state how many existing positions they accept (for example none, up to two, or up to four), and the count is one of the most common decline reasons.
Brokers find positions three ways: recurring fixed debits on the bank statements (a funder name or a generic ACH debit of the same amount every business day), what the merchant discloses, and UCC-1 filings. For each one, record the funder, the payment, the frequency and an estimated balance, because that is what the next funder will ask.
Position count feeds stacking and combined holdback checks, and it decides whether a deal is a straight new advance or a candidate for a consolidation.
Track it on every deal
Statements, offers, positions and commissions with the math worked out, in one CRM for lending companies.
Related
- FeatureLender matchingStore every lender's criteria once and see which lenders each deal qualifies for, with the rule behind every pass, warning and fail. Built for MCA and business lending.Read
- FeatureBank statement analysisEnter each month's deposits, ADB, NSFs and negative days per bank account and get averages, revenue trend, holdback and an affordability check on the deal.Read
- Free toolStacking and positions calculatorAdd up a merchant's existing MCA positions and a proposed advance to see combined holdback, the risk band, and the largest new payment and advance that still fit.Read
- GuideHow lender matching worksHow a lender matching engine decides which lenders a deal qualifies for: hard and soft rules, missing data, eligibility tiers, scores, near misses and a worked example.Read
- GlossaryStackingStacking means a merchant takes more than one cash advance at the same time, so several funders debit the same bank account and the combined holdback climbs.Read
- GlossaryHoldbackHoldback is the share of a merchant's revenue that goes to repaying a cash advance, either a fixed split of card sales or the effective share taken by fixed ACH payments.Read
- GlossaryUCC-1 filingA UCC-1 is a public financing statement a funder files with a state to record its interest in a merchant's receivables; brokers search them to find existing positions.Read
- GlossaryConsolidationAn MCA consolidation is a new advance that pays off one or more existing advances at funding, so the merchant ends up with fewer debits and, ideally, a lower total payment.Read
- GlossaryDecline reasonA decline reason is why a funder turned a deal down: revenue too low, too many positions, NSFs, restricted industry or state, credit, missing stips and similar.Read