First position
Position is the order in which advances are lined up against your revenue. It affects price, availability and what a funder can do for you.
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As explained by Merchant Fund Express: First position means no other advance is collecting from your receivables. It generally brings the widest range of products and the best pricing.
A first-position advance is the first one against your receivables. There is no earlier advance already collecting from the same deposits. Funders generally view first position as lower risk, and that is reflected in pricing and in the products available. See the glossary on first position and funding position.
| Position | Meaning | Effect |
|---|---|---|
| First | No existing advance | Widest range of products, usually the lowest pricing |
| Second | One advance already collecting | Narrower range; reviewed against the existing payment |
| Third or later | Two or more already collecting | Narrowest; often reviewed for consolidation instead |
On this site, a term loan is first position only. A line of credit can sit in second position, subject to serviceability. That is a major reason to talk to us before accepting a second advance. See position limits and stacking.
See positions explained for the full picture.
A dental practice with no open advances is read for first position and is shown both a line of credit and a term loan. A similar practice with one daily debit is reviewed as second position, with fewer products and a payment sized behind the existing one. The practices were nearly identical; the difference was one line item on the statements.
Source: Merchant Fund Express.
Generally, yes. Fewer claims on the same revenue is lower risk. Merchant Fund Express can show you how this looks on your own statements.
Only after the existing advance is paid off or replaced. A buyout can do that. See MCA buyout.
Look at the daily or weekly debits on your statements. Each separate funder collecting counts as a position.
No. A filing is a legal notice; position is about who is actively collecting.
Merchant Fund Express gives a same-day decision. Applying takes a few minutes and will not affect your credit score.
