Establish how many positions, what they cost daily, and whether the business is profitable underneath them — then say plainly what that means. A merchant with three or four positions consuming most of their receipts is usually not a funding problem, and adding a fifth is a broker choosing a commission over a business. Sometimes the right advice is consolidation, or nothing.
This is the call where the industry’s reputation is made and lost. The merchant wants money, somebody will place it, and whether that somebody is you comes down to what you find out before you decide.
| Situation | What might help |
|---|---|
| Profitable, timing problem, dated relief coming | Reverse consolidation, with a commitment to stop stacking |
| Positions nearly repaid | Waiting, then a clean renewal |
| One position, strong file | A normal second position |
| Unprofitable underneath the remittances | Nothing you sell. Say so. |
A merchant told plainly that another advance would hurt them remembers it, and a meaningful share of them come back when they are fundable — because they now believe you. That is a slower business than placing everything and a considerably more durable one, and it is the only version that survives the industry getting more regulated rather than less.
It also protects your funder relationships. Files that default trace back to whoever submitted them, and a broker known for placing distressed paper gets read differently on every subsequent deal.
It depends on how much of their receipts the existing remittances consume and whether the business is profitable underneath them. One position on a strong file is ordinary; four consuming most of the takings is usually not a funding problem.
What the money is for. If the answer is covering the existing remittances, another advance makes the failure larger and puts your name on it.
Reverse consolidation where the business is profitable and the problem is timing, or simply waiting until positions are repaid and doing a clean renewal. Where the business is unprofitable underneath the remittances, nothing you sell helps.
In the short term, yes. A meaningful share of those merchants return when they are fundable, because you are the broker who told them the truth — and your funder relationships stay intact, which affects every other deal.
The bank statements, not the merchant. Look for identical debits recurring on every business day, roughly 21 or 22 times a month. Merchants routinely under-report positions without meaning to deceive.
We will tell you straight up if we cannot help you. No commission deals, no free trials, no chasing you for three weeks.