Funding position

In merchant cash advances, position describes order. A first-position funder is the only one collecting, or was there first. A second-position funder funds while the first is still collecting, and so on down the line.

Order matters because every position draws on the same deposits. Later funders take more risk and often price for it. Separately, UCC filings on the same collateral generally rank by filing date, so a later funder's claim usually sits behind the earlier one.

Funders see your open positions on your bank statements and in UCC searches, so list every one when you apply. A position left off will not stay hidden, and many contracts treat false statements on an application as a default.