Business Resources › Double Dipping
Double dipping occurs when multiple funders advance capital against the same revenue stream without full disclosure of existing positions. It creates overlapping obligations that can put serious pressure on daily cash flow and business operations.
A business takes on one funding position and then applies for another without disclosing the first. Some brokers facilitate this intentionally. Others miss it through lack of due diligence. Either way the business ends up with obligations it may not be able to sustain.
When two or more funders are drawing from the same revenue stream at the same time the daily payment burden can exceed what the business can reasonably support. This leads to declined payments, damaged relationships with funders, and in some cases complete disruption of business operations.
We review all existing funding positions before structuring any new capital. Full disclosure of current obligations is required. Our goal is to make sure any new funding we structure is something your business can actually support without creating additional strain.
Every business is different. If you have questions about double dipping, MCA stacking, renewals, consolidation, business lines of credit, or term loans, submit the pre-approval form and we will review your situation.
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