Can I get a business loan if I already have two MCA positions?

I just got off the phone with a guy running a pretty successful HVAC company in Florida. He sounded exhausted. And honestly, I don't blame him.

He’s got two merchant cash advances (MCAs) currently coming out of his business bank account. One is hitting him for a daily payment, the other is weekly. Between the two of them, a huge chunk of his revenue is gone before he even opens his doors in the morning. But his busy season is coming up, one of his vans blew a transmission, and he needs another $20,000 to get ready.

He asked me the same question I hear probably five times a week: "Can I get more funding if I already have two positions out?"

The answer is yes. But it’s not a simple yes.

Look, I’m not going to sit here and tell you that getting a "third position" (that’s industry speak for a third loan on top of two existing ones) is easy. Most traditional banks will laugh you out of the room the second they see those daily debits on your bank statements. They view that as extreme risk.

But we aren't a bank. At LoanQuail, we look at things differently. If you are sitting on two advances and need capital, here is the reality of the situation and what we can actually do for you.

The "Cash Flow" Problem

Here is why most lenders get nervous about a third position.

It’s not just about your credit score. Honestly, with revenue-based funding, your credit score matters less than your cash flow. The problem is that those first two positions are likely eating up a significant percentage of your daily deposits.

Let’s say you make $50,000 a month. But your first MCA takes $200 a day, and your second takes $300 a day. That’s roughly $10,000 to $11,000 a month leaving the account just to service debt. If we give you a third loan, can your business actually survive the payment?

We have to make sure we aren't setting you up to fail. That helps nobody. I’ve seen businesses take a predatory third position from some shady lender, and it choked their cash flow so bad they couldn't make payroll two weeks later.

We don't do that.

So, what are your actual options?

If you have two positions, we generally look at three specific paths. Which one works for you depends totally on your assets and your monthly revenue.

1. The "Net" or Add-On

If your first two balances are paid down significantly—say, you’re 60% or 70% of the way through paying them off—we might not even need to do a third position. We could look at paying off one of the existing balances and rolling it into a new, larger advance.

This is usually the best-case scenario for a merchant because you end up back with just one or two payments, but you walk away with fresh cash.

For example, I helped a client last month who had a balance of $8,000 left on a $30,000 advance. We approved him for $40,000, paid off the $8,000, and deposited the remaining $32,000 into his account. He got the money he needed, and he didn't add a new daily payment to his stack. He just extended the term.

2. A True 3rd Position

Sometimes you can't pay off the old ones. Maybe you just took the second one a month ago. In this case, we look at a true 3rd position.

I’m gonna be real with you here—these are more expensive. Because the risk is higher for the lender (since there are two other people in line to get paid before us), the cost of capital goes up. The terms are usually shorter, too.

We usually only recommend this if you have a very specific, high-ROI reason for the money. Like:

• You have a massive inventory order that you know will sell immediately.
• You have an invoice waiting to be paid but need cash to cover labor this week.
• Equipment repair that is stopping you from working.

If you just need the money to "float" or pay rent, a 3rd position is dangerous. But if you need it to make money, let's talk.

Do you own real estate? (This changes everything)

This is the big one. If you own commercial property, or even residential investment property with equity in it, forget everything I just wrote above.

If you have real estate collateral, we can often get you a Real Estate Backed Business Loan.

This is the holy grail for merchants stuck in high-interest MCA stacks. Why? because we can use the property to secure the loan, which lowers the risk, which lowers the rate, and—most importantly—extends the term.

Instead of paying the money back in 6 months with daily payments, maybe we can push it out to 12, 24, or even 36 months with monthly payments. We use that fresh capital to pay off your two MCA positions completely.

Suddenly, your daily payments are gone. Your cash flow opens up. You can breathe again.

I remember a restaurant owner in Chicago a few months back. He was drowning in dailies from three different positions. He happened to own the building his restaurant was in. We leveraged that equity, paid off all three sharks, and reduced his monthly output by something crazy like 60%. He literally called me crying.

So, check your eligibility with LoanQuail if you have property. Seriously. It’s a game changer—wait, I promised myself I wouldn't use that phrase. It’s a life saver. That's better.

What about consolidation?

You’ll see ads all over the internet for "MCA Consolidation." You have to be careful here.

True consolidation—where a bank gives you a low-interest loan to pay off high-interest debt—is rare if you already have bad credit or low balances. Banks don't like touching MCA debt.

However, we do offer something called Reverse Consolidation. It’s a bit complex, but essentially, we provide a facility that covers your daily payments for you, and you pay us back a lower amount over a longer period (usually weekly). It smooths out the cash flow crunch.

It doesn't make the debt disappear, but it stops your bank account from getting hammered every morning, giving you room to operate.

Things you should absolutely NOT do

If you are sitting on two positions, please don't do the following:

• Don't start stacking 4th and 5th positions. There are lenders out there who will do it. They allow "micro-payments." It looks cheap but it will bleed you dry. We won't do that to you.

• Don't change your bank account to hide the payments. This constitutes a default and breach of contract. It freezes you out of the system entirely. We can't help you if you have a "blocked account" alert on your file.

• Don't apply to 15 places at once. Every time you apply, it triggers inquiries. When I see a file come across my desk and I see the merchant has applied to 12 other funders in the last 48 hours, it looks like desperation. It makes it harder for me to get you approved.

Look, just be honest with us

We aren't a algorithm. We're people. When you send over your statements to LoanQuail, just tell us the story.

"Hey, I have these two positions. The first one was for renovation, the second one was for tax debt. I need a third one because I have an opportunity to buy out a competitor."

That context matters. If the numbers make sense—meaning your revenue can support the payment without killing your business—we will find a way to get it funded. Whether that's a small 3rd position, a buy-out, or a real estate backed term loan.

It costs you nothing to let us look at the file. If we can't do it, we will tell you straight up so you don't waste your time. But more often than not, if you're generating revenue, we can find a fit.