Facility Stacking
Last reviewed 13 June 2026 by Nick Lim, finance broker (FBAA).
Facility Stacking is taking on multiple separate finance facilities at the same time, often from different lenders, so the debts sit on top of one another. It is common with short-term business loans and merchant cash advances, where a borrower takes a second or third facility before repaying the first, and lenders increasingly scan bank statements for the signs. Stacking lifts the total repayment burden and weakens serviceability, so it is treated as a risk flag.
Why Facility Stacking Matters
Stacking can solve a short-term cash gap but it compounds repayments fast and makes the next approval harder.
- Multiple facilities running at once, often across lenders
- Common with short-term loans and cash advances
- Raises total repayments and weakens cashflow
- Hurts serviceability for the next application
- A red flag lenders look for in bank statements
Common Features of Facility Stacking
- Several active facilities at the same time
- Often different lenders unaware of each other
- Daily or weekly repayments that compound
- Visible in transaction data
- Signals cashflow stress
Official reference: business.gov.au
What is facility stacking?
Taking on multiple finance facilities at once, so the debts stack up and the repayments compound. It weakens serviceability.
Why is facility stacking risky?
Because total repayments climb quickly, straining cashflow and making the business harder to refinance.
Do lenders check for stacking?
Yes. They review bank statements for multiple loan repayments and cash advances as a risk signal.
Is facility stacking ever sensible?
Occasionally for a planned, short bridge, but usually it is a sign to consolidate rather than add more debt.
How do I get out of stacked facilities?
Often by consolidating into one facility, which can restore serviceability and cut total cost.