As previously written about in numerous articles, stacking is a common tactic used by MCA and alternative loan brokers to fund clients which is unethical and against what funders allow. Stacking is when brokers give more than one (some times many) cash advances to one small business owner within a day or so of the each MCA. Brokers make stacking an art and are clear with the small business owners who they stack, they do not want the MCA companies to know they are getting more than one cash advance.
In FORA FINANCIAL ADVANCE, LLC, FORA FINANCIAL BUSINESS LOANS, LLC, FORA FINANCIAL ASSET SECURITIZATION 2021, LLC, and FORA FINANCIAL WAREHOUSE LLC v. 4 Pillar Consulting LLC, Fora sues broker for $500K for allegedly stacking clients who defaulted on Fora's funding. Several examples are provided in the docket of the deals that 4 Pillar is accused of stacking.
By Thomas Tramaglini, Chief Operations Officer
Partner, The Center for MCA Research
Case Overview
The defendant, MCA Predator (Broker) 4 Pillar Consulting LLC was accused of stacking several clients who defaulted.
For instance, Fora claims that 4 Pillar funded Zach Savage Homes LLC on 9/1/2023 for $325K (payback of $442K) stacked the deal with an MCA from Vox Funding. 4 Pillar was paid $26K just on the deal with Fora and Zach Savage Homes. Another example from the lawsuit was when 4 Pillar funded Ashley Wellness $49,210 and stacked the deal with an advance from Fundworks.
Other examples are provided in the lawsuit. In every case the client defaulted after 4 Pillar stacked the client.
Brokers are Bad Because of Stacking
Stacking is bad news. Stacking never turns out well for the Client because in most cases they default. Fora is one of the few in the industry who is holding Bad Brokers accountable for hurting their advances, as well as the small business owner.
Dr. Thomas Tramaglini is the Director of Operations and Negotiation for Beacon Client Solutions, a company that supports small businesses on a host of fronts, especially MCA debt. Thomas has been a small business owner for many years, as well as held leadership positions in several organizations and companies. Thomas holds a B.A. in History, as well as Masters and Doctorates in Organizational Leadership from Rutgers University, The State University of New Jersey.
Disclaimer: Beacon Client Solutions is not an accountancy, or a law firm. We are business consultants. While Beacon works with outstanding attorneys and accountants, we cannot and do not provide legal or tax advice. All of our work is connected to those who are legally certified to give such advice. Beacon does have a longstanding body of work in MCA resolution and understands what small business owners deal with, specific to MCA. Beacon Client Solutions serves clients in all 50 states, Puerto Rico, Mexico, and Canada.