The share of advances that fail to be repaid in full under their original terms.
Typically 11–18% across the industry, with broader estimates spanning 10–25% depending on underwriting standards and segment. Stacked positions exceed 40%, which is the figure that explains most funder behaviour around existing positions.
Stacking
A merchant taking an additional advance while an earlier one is still outstanding, so multiple remittances draw on the same receipts.
Position
An individual outstanding advance against a merchant, counted in order — first position, second position, and so on.
Syndication
Multiple parties each funding a portion of the same advance and sharing the returns and the risk proportionally.
Default
A merchant’s failure to meet the terms of the advance agreement, most commonly repeated missed or returned remittances.
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