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Johny Fernandez: So what do
brokers need to know about

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stacking?

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Sean Murray: brokers need to
know a lot about stats. So this

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is this is a kind of a little
bit of a longer answer.

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Hopefully you're gonna give me
you're gonna give me the time.

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Yeah. Okay, this is a price of a
lifetime. So yes. So what are

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brokers need to know about
stacking? It's very important

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for brokers to be aware that in
commercial finance, there are

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different terms and conditions
that come with every contract,

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whether it's a loan, factoring,
merchant, cash, advance,

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equipment, leasing, or whatever.
And so if a, if a merchant

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already has one product, and
they need additional capital, is

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not as easy as as being like,
Okay, great, I'll find you an

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additional capital source. And
you'll just get it, you need to

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be aware that a merchant getting
additional capital from

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somewhere else could conflict
with the existing contract they

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already have in place. And so if
you're offering something to a

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merchant, you don't want to put
them in conflict with their

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original funding source that
actually could end up hurting

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them. Right, it can put them in
a breach of the agreement, some

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funding companies do not allow
merchants to stack. They say you

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can only use this or if you're
going to go out and get

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additional funds from somewhere
else, you need to give us some

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type of prior written notice and
get permission and so forth.

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Sometimes it has to do with
depending on the product with

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with the collateral, you can't
use the same collateral for two

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different loans. Right? And so
if you're a lender and say, I

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want to use this merchant
equipment as their collateral,

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but they've already pledged that
collateral to somebody else.

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Well, you are the broker need to
make sure you're navigating that

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properly, because you don't want
to put the merchant in some type

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of conflict or breach of the
agreement. So they need to

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brokers out there need to be
very careful about stalking.

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Because it's not as simple as
just going out and getting

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getting more money. You need to
think about what are the

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consequences of getting money
from more than one source.