Alternative Business Financing: Biggest Financing Mistakes

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In this article we will discuss the biggest mistake you can make with alternative business financing. The biggest mistake you can make it’s called stacking. What is stacking? Stacking is when you obtain an alternative loan with a merchant cash advance lender and then you take out another loan and another loan. Stacking is not illegal, but some lenders will not allow for stacking. If you obtain a loan with an alternative lender and several days, weeks, or month later you obtain a second loan you may be in big trouble. If your first lien holder does not allow for a second loan to be taken out, they may recall the first loan. What does that mean? The first lien holder may have you pay off the full principal balance. Next time you get a first loan and you are thinking about getting a second loan, read the fine print on the loan agreement.

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