Why it matters
Most lenders cap how many positions they will sit behind, and every lender checks how much of the merchant's revenue already goes to other funders. A position you miss is one the lender will find on the statements, and the file loses credibility. Recording positions also sets the position count used in matching and the existing payments in the holdback check.
- PositionsA position is one open cash advance on a merchant's account, numbered in the order taken: first position, second position and so on.
- StackingStacking 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.
- HoldbackHoldback 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.
Step by step
- 1Open the merchant's Positions tab, or the Existing positions section on the deal's Overview.
- 2Click Add position. Enter the Funder (as it appears on the statement), the Payment and its Frequency, the Est. balance, and if known the Funded amount and when it Started.
- 3Set the Source: from the bank statement, a UCC search, what the merchant told you, or another source.
- 4For a consolidation or a renewal, switch on Pay off with the new advance. The position shows a Payoff badge.
- 5Click save. The table shows the monthly equivalent (Per month) and the deal's statement summary and lender matches update.
When a position is paid off, switch off Active rather than deleting it. Inactive positions stay on record but no longer count toward holdback or the position count.
Finding positions on statements
Look for
0 of 5More on this in Spotting existing positions.
Common mistakes
- Entering a weekly payment with Daily frequency. The monthly figure, and the holdback, come out five times too high.
- Recording the same advance twice under two descriptors.
- Entering MCA debits on the statement grid that do not match the positions. The summary uses the statement debits when they are entered, so the two should agree.
- On a renewal, forgetting to add the advance you placed as a position with Pay off with the new advance on, so the payoff is visible.
Try it in the app
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Related lessons
- Reading bank statementsSpotting existing positions on bank statementsFind other advances on a merchant's statements: recurring ACH debits, descriptors, daily and weekly patterns, what is left to pay, and why disclosure matters.
- Merchant cash advance 101Stacking, consolidation and reverse consolidationPositions, stacking and combined payment burden worked through, and how consolidation and reverse consolidation differ, and why funders want position history.
- Underwriting and analysisStacking and payment burdenMeasure how much of a merchant's revenue already goes to advances, set your affordability lines in settings, and read the warnings the CRM raises.
- Processor playbookEntering the bank statement analysisType each month's deposits, true revenue, balances, NSFs, negative days and MCA debits into the deal's statement grid, and read the summary lenders match on.