What Makes a Strong 2nd Position Deal in 2025?

As the MCA landscape continues to evolve in 2025, second position deals remain a big opportunity for ISO brokers—especially when first positions are already tied up with competitive offers. But what makes a second position stand out in today’s market? At Rowan Advance, we’re actively funding 2nd positions with speed and strong commissions—but we’re also selective. Here’s what we look for to make a second position deal a win for everyone involved.

1. Healthy Cash Flow

The #1 factor: does the merchant have the cash flow to support two payments? We’re looking at daily or weekly deposits that comfortably support the first and second position payments, with room to breathe. Bonus points if the merchant isn’t maxed out on their processing capacity or margins.

2. Strong First Position Structure

Not all firsts are created equal. A solid 1st position should have reasonable terms (not ultra-stacked), manageable balances, and a funder with a solid reputation. If the first is being paid down aggressively and the merchant has stayed current—those are green flags.

3. Clean Payment History

We know things happen—but the cleaner the track record, the easier the approval. We love seeing merchants with consistent, on-time payment history. Defaults or recent NSF activity? That’ll need explanation and extra documentation to move forward.

4. Industry Stability

Certain industries just perform better in 2025’s environment. Home services, logistics, medical practices, construction, and e-commerce are standing out this year. If your 2nd position deal falls into one of those buckets, let’s talk.

5. Minimal Stacking

Stacking beyond a second position can complicate underwriting and spike the risk profile. At Rowan Advance, we’re currently looking at up to 3rd positions on select files—but a clean 2nd is our sweet spot. If there are multiple stacks, we’ll want to understand the merchant’s full payment schedule and why additional funding is truly needed.

6. Purpose of Funds

Merchants looking for growth capital, equipment purchases, or seasonal inventory restocks usually have a clear path to ROI. That’s much stronger than “just covering cash flow.” Clear, growth-oriented use of funds gives us more confidence in the deal’s long-term success.

Bottom Line: We’re Ready for Your 2nd Position Files
At Rowan Advance, we’re funding 2nd positions fast—with flexible terms, early payoff options, and generous commissions. If your file checks the boxes above, send it in. Not sure? Let’s workshop it together.

Let’s get those deals funded.

Ready to submit or want feedback on a file? Contact Rowan Advance today at [email protected]