A first-position funder is repaid from receipts nothing else claims, which is why first-position paper prices best and why the number of positions matters more than the total advanced.
Related terms
Position
An individual outstanding advance against a merchant, counted in order — first position, second position, and so on.
Stacking
A merchant taking an additional advance while an earlier one is still outstanding, so multiple remittances draw on the same receipts.
Blanket lien
A security interest covering substantially all of a business’s assets rather than specific identified collateral.