Hello, I’m working in small c paper company and II’m having trouble to understand about this and had a question about how to decide between stacking and paying off an existing lender.
For example, if a merchant has strong time in business, a solid industry, good daily ending balances, and around $100k in monthly revenue, but already has one lender who funded $100k recently, how do you determine whether it’s better to stack behind that lender or pay them off? Obviously, I understand that if the balance were low, I’d pay them off. Is there like % of revenue that decide that? Really having trouble understanding this.
I’ve asked around at my shop, but I’ve been getting mixed answers. I’d really appreciate if someone could break it down in a simple way.