If you have multiple stacked MCAs, your options include written reconciliation requests, a reduced payment, a settlement, challenging the MCA in court, or filing for bankruptcy under Subchapter V. The order in which you address each MCA may be as important as the tools you use.
How do you determine the priority position of each MCA funder?
Search the UCC database with your Secretary of State (in Pennsylvania, the Department of State) and review the date of each UCC-1 financing statement. Priority generally runs from the date each interest is filed or perfected, see UCC § 9-322(a)(1). Then review each contract for the balance, daily debit, reconciliation deadline, stacking fee, defaults, confession of judgment, and guaranty.
For example, assume a Philadelphia service business deposits $12,000 per banking day and four MCA funders debit a total of $2,300 per day (19.2% of deposits), which increases to 25.6% if deposits drop to $9,000.
An illustrative four-MCA stack
| Priority Position | UCC-1 Date | Remaining Balance | Daily Debit | Additional Information |
|---|
| First position | January 2026 | $60,000 | $700 | Anti-stacking clause, PA confession of judgment, personal guaranty |
| Second position | April 2026 | $45,000 | $600 | New York funder with New York COJ |
| Third position | June 2026 | $30,000 | $550 | Default if you stop other MCA funders' ACH debits |
| Fourth position | August 2026 | $20,000 | $450 | Same funder as second position |
Which MCA funder should you deal with first?
Deal first with the MCA funder able to cause you the greatest harm. Evaluate each funder in this order:
- Does it have a confession of judgment it can enforce? Pennsylvania still allows commercial confessions of judgment, and you generally only have 30 days after being served with the notice of execution to petition to strike or open the judgment, see Pa.R.C.P. 2959(a)(3). A New York COJ may only be entered in the county where the defendant lives or does business, see CPLR § 3218, so it is weak against a Pennsylvania company.
- Has it filed a lawsuit or notified your customers? After notice, your customers must pay the funder directly, see UCC § 9-406(a).
- Does it have a "hair trigger" default? In June 2026, the Appellate Division in New York held that the borrower defaulted when it failed to request reconciliation within one business day of a returned debit, see NewCo Capital Group, LLC v SPE Trading, LLC. Some publicly filed agreements also make it a default to stop another funder's ACH debit without a written explanation within two business days.
- Does it hold multiple positions? One filed contract states that a default under "any other agreement" with the same funder is a default of that agreement, so deal with the second and fourth positions above at the same time.
In the example, the first position goes first: it has a COJ enforceable in Pennsylvania, the first lien, and a stacking claim. Either remain current with it or obtain written confirmation that it will forbear. Do not stop the third position's ACH debits until you have reviewed its clause about other funders' ACH debits.
Why are the "junior" MCA funders more likely to negotiate?
Junior funders are usually more willing to negotiate because they know they will collect little in a liquidation. In a bankruptcy, a creditor's claim is only secured to the extent of the value of its collateral, see 11 U.S.C. § 506(a), which can leave little for MCA funders if the business lacks significant accounts receivable.
What happens if I break my anti-stacking clause?
You are likely breaching your first MCA agreement. However, under UCC 9-401(b), the anti-stacking clause does not void the advances. Filed agreements show a flat $10,000 fee, 25% of the remaining balance, or the greater of $25,000, 10% of the remaining balance, or 45% of remaining payback. On the first position's $60,000, that's a $27,000 fee. If all 4 positions accelerate at 25%, that's $38,750 on top of the $155,000 you already owe. Many agreements also have you state that signing will not breach any other agreement. Under 11 USC 523(a)(2), if you signed a guarantee and made a false statement in writing, that debt may not be dischargeable in bankruptcy.
What are my exit paths from multiple stacked MCAs?
While you are still paying, you can ask the MCA companies in writing to reconcile with bank statements. If your receipts have gone down, the reconciliation clause trues up each debit to the percentage of what you collected stated in your agreement, see Oakshire Props., LLC v Argus Capital Funding, LLC. If they are sinking on steady revenue, ask for modifications. See also Can I Settle Stacked MCAs at the Same Time? You cannot get an SBA loan while you have MCAs: SBA SOP 50 10 8 bars refinancing them, and starting October 1, 2026, refinancing is allowed only after conversion to a term loan amortized over 24 months.
People v Richmond Capital Group (1st Dept Feb 2026) held certain agreements were loans, not purchases, and a bankruptcy court held in July 2026 that 19 advances from one MCA company were recharacterized because of an illusory reconciliation. Filing bankruptcy invokes an automatic stay under 11 USC 362 and stops all the MCA companies. Subchapter V cases filed on or after June 21, 2024 allow up to $3,424,000 in debt, per the US Trustee Program. This will not help you if you signed a personal guaranty.
Taking another MCA to cover your debits is how people get stacked in the first place! See Should I Take Out Another MCA to Cover My Current MCA? Stacking Risks. Switching bank accounts can also be a default; one filed agreement bars opening another deposit account without consent.
Frequently Asked Questions
If I stop paying one MCA company, am I in default with the others?
You may be. While different MCA companies rarely cross-default by clause, if your account is drained, you will likely be in default with each for NSF if you have 2 in a row, or 4 total NSFs. Some agreements also make stopping another company's ACH without a written explanation a default.
If I have an MCA in New York with a Confession of Judgment, can they enforce it against my business in Pennsylvania?
Likely not. Under CPLR 3218, they can only enter it in the county you reside or do business in. However, Pennsylvania DOES allow commercial Confessions of Judgment, and you only have 30 days from the date you are served with the Notice of Execution to petition the Court.
Can I get an SBA loan to pay off my MCAs?
Not as long as you have an MCA. The SBA will not refinance MCAs; however, as of October 1, 2026, they can refinance as long as they have been converted to term loans amortized over 24 months and there are no new agreements.