As Cory Elliott’s construction company boomed, her financial obligation woes started. She was indeed rejected by 10 banking institutions for financing to enhance her St. Louis construction company, and a financial consultant she hired proposed a popular alternative: a merchant cash loan.
6 months later on, she had been spending over $14,000 a to service debt of $130,000 for two cash advances month. This sounds like payday loans for small businesses, as some critics have called merchant cash advances, you’d be on the right track if you’re thinking. Both consumer pay day loans and vendor payday loans can sink borrowers in to a financial obligation spiral of high-interest, short-term loans, small-business advocates state.
Vendor payday loans вЂ” a type of online small-business lending вЂ” are marketed as being way to greatly help companies spend money on their future. Continue reading “Let me make it clear about Why Payday Loans for Small Businesses Are Bad Information”