What does “Second Position” mean? An existing business loan or cash advance featuring daily or weekly repayment is commonly considered a “position.” Second position funding occurs when a business has an outstanding balance and secures additional capital, without paying off the existing balance. Many capital providers consider some competitor balances (loans/ advances/credit lines) to be a “position,” whereas others do not. This is one of the many ways in which all capital providers are unique and one of the underwriting guidelines we’ve been able to identify across the board and use to our client’s advantage.