Merchant Cash Advance Companies Using High-Interest Loans To 'Strong-Arm' Small Businesses | MSNBC

California small business owner Jay Hoehn is calling attention to merchant cash advance companies who are using high-interest loans and abusive collection tactics to prey on small businesses as regulators begin to take action. Aired on 08/13/2020.
» Subscribe to MSNBC: on.msnbc.com/Su...
MSNBC delivers breaking news, in-depth analysis of politics headlines, as well as commentary and informed perspectives. Find video clips and segments from The Rachel Maddow Show, Morning Joe, Meet the Press Daily, The Beat with Ari Melber, Deadline: White House with Nicolle Wallace, Hardball, All In, Last Word, 11th Hour, and more.
Connect with MSNBC Online
Visit msnbc.com: on.msnbc.com/Re...
Subscribe to MSNBC Newsletter: MSNBC.com/Newsl...
Find MSNBC on Facebook: on.msnbc.com/Li...
Follow MSNBC on Twitter: on.msnbc.com/Fo...
Follow MSNBC on Instagram: on.msnbc.com/In...
Merchant Cash Advance Companies Using High-Interest Loans To 'Strong-Arm' Small Businesses | MSNBC

[@Freiclips]

Buddy signed the thing and acted like he didn’t know the risks of taking a loan lmao

[@Luminex16]

Like 😂

[@powercloud9610]

@jidowu6019Business owners need to make smart decisions.

[@jackmacziz6140]

The guy literally signed the contract knowing full well the interest rate. This is the equivalent to suing a fast food company for low nutritional value even though you chose to eat there.

[@jorndoff2002]

What did this guy think he was getting a loan he wouldn’t need to pay back? The terms were fully disclosed. This industry has kept many businesses in business.

[@realtalk7685]

Bank's are tightening their credit boxes. The only options for a lot of businesses are hard money and merchant cash advances. They are payday loans for small businesses

[@coffeewithdawood]

worst than payday loan

[@christophersmith5485]

a loan you have to pay back? how dare they.

[@EarlGray007]

Just shameless greed in a pandemic. SMDH.

[@elram2649]

...the love of money is the root of all evil...

[@stacymiller3362]

Hi,Text Freddy .. (614-585-3060) He’s an expert 💯 I got 15k$ within 10 minutes All thanks to him for helping with cash app flip, credit card flip He also works on SBA loan MONEY GRANT 💵💵💵👌 within a week, loan forgiveness. Text Freddy and thank me later This guy is a life saver. He his texted and trusted 💯💯💯

[@stacymiller3362]

@@elram2649 Hi,Text Freddy .. (614-585-3060) He’s an expert 💯 I got 15k$ within 10 minutes All thanks to him for helping with cash app flip, credit card flip He also works on SBA loan MONEY GRANT 💵💵💵👌 within a week, loan forgiveness. Text Freddy and thank me later This guy is a life saver. He his texted and trusted 💯💯💯

[@jorndoff2002]

Nonsense this is an industry that has saved more businesses than banks

[@joebo2586]

I’ve been an MCA broker for a year and a half now. Msdnc of course gives the worst possible look to the industry. Yes, our industry is relatively unregulated and there are bad actors, no doubt. There are guys out there that will say literally anything to get you to sign. If a merchant does their research on who they’re working with, they’ll have a clean experience. The terms are fully disclosed verbally and in writing, I personally advise clients to avoid mcas if the deal isn’t going to help them. They’re expensive but there’s a reason for that. MCAs are unsecured and can fund in hours, default rates are very high compared to other forms of debt. For us to stay in business, we have to price accordingly. In all, MCAs are around for a reason. Banks won’t fund 95% of applications and it takes months to close. If you’re working with a verified company, you’ll be fine.

[@joebo2586]

Also, I hate how Stephanie Ruhle referred to this as a loan. MCAS ARE NOT LOANS! They are a purchase of future revenues. This is a very very important detail that they didn’t even bother to mention. MSNBC should not be trashing an industry if they cant even explain what the product is

[@NickyRikki]

I am looking to start working also as a broker in the industry. I see alot of great potential with COVID. Is it as profitable as they say to be a broker ?

[@danieldavidovich1573]

how is being a broker

[@topnotch6907]

Industry is highly saturated, not trying to discourage you, just putting it out there.

[@mk00012]

All interest no matter the rate is usury and exploitation

[@Inferno539]

Here’s the thing, banks don’t provide loans to small businesses and they need money so they go with MCA. Factor rates vs interest rates. End of the day the consumer signs the dotted line. MCA is not all bad, some great success stories from businesses that used them.

[@MrKingpimp22]

So he took the money to the risk didn’t read but the company’s at fault?

[@williamsaunders3382]

Exactly!

[@Luminex16]

You borrow $5000 from the bank to finance a car. You can’t pay them back? Then you lose your car… interest rate could’ve been 4% or 21% doesn’t matter. You have to pay your dues 🤦‍♂️

[@MrKelzos]

These companies are terrible, but the issue lies also with the owner. He signed a contract that allows the organization to do what they are doing. Lastly, I'm sure his business was already deemed not a smart investment by other banks , if it was he would have went with them , instead of getting a loan from this company.

[@MrKelzos]

@ I agree with you completely . These companies are scum I agree. The one thing however, is this person operates a business. Other banks obviously looked at his business and saw that it was a risk to invest and give this person a loan. He could have gave up and , that may have been the smart thing to do . But he decided to agree and here he is. I assure you, if his credit and business model was profitable a bank would have gave him a loan at a reasonable interest rate. The business must have been already in bad shape before getting the loan, or he had no collateral to secure the loan he was asking for .

[@stacymiller3362]

@ Hi,Text Freddy .. (614-585-3060) He’s an expert 💯 I got 15k$ within 10 minutes All thanks to him for helping with cash app flip, credit card flip He also works on SBA loan MONEY GRANT 💵💵💵👌 within a week, loan forgiveness. Text Freddy and thank me later This guy is a life saver. He his texted and trusted 💯💯💯

[@stacymiller3362]

@@MrKelzos Hi,Text Freddy .. (614-585-3060) He’s an expert 💯 I got 15k$ within 10 minutes All thanks to him for helping with cash app flip, credit card flip He also works on SBA loan MONEY GRANT 💵💵💵👌 within a week, loan forgiveness. Text Freddy and thank me later This guy is a life saver. He his texted and trusted 💯💯💯

[@timkaldahl]

They must not have paid their senator for protection like the payday lenders. Odd how it's ok to screw individuals but not businesses.

[@Thetruthyaheard]

Is it predatory if you read the disclosures and already knew what comes with such financing arrangements? Just because you’re out of options doesn’t mean you should try an alternative that is considered too egregious.

[@myvalentine9590]

These lenders are disgusting! This should be regulated and predatory lenders prosecuted!

[@scph321]

DECISION 2020: Trump vs America. Trump vs our Constitution, Trump vs Science. Trump vs our democracy. Trump & Putin vs our troops in Afghanistan. Trump vs TRUTH. Trump vs human decency. Trump vs morality. Trump vs you & me. Who's side are you on? MAKE A DECISION... Biden/Harris 2020!!!!💙

[@bigernmahkracken7960]

Sharks like these should not be allowed to declare bankruptcy. Trump should be in the middle class, he blows his dad's fortune and declares chapter 7 to keep his wealth. Then dodges paying one dollar in taxes for the next 30+years.

[@topnotch6907]

How are they disgusting? Lol

[@Np_1227]

@@scph321how’s your bidenomics working out? Lol

[@MrJohneblaze822]

All lenders do the same exact thing. MCA companies are just selling you money with interest.

[@davidromney4150]

Good people in just societies work to prevent the exploitation of those vulnerable.

[@kristi1189]

I though usury was against the law. We need to resurrect the concept of usury. That includes banks charging overdraft penalties.

[@deborahfreedman333]

Actually, it includes any type of interest, including that you get from a savings account. Modern commerce couldn't exist without a little usury, but there should be reasonable limits. And payday lenders are the worst culprits.

[@emastulenchan7019]

In Malaysia it is called LOAN SHARKS!!

[@asadmatsumoto8911]

It really depends who you work with

[@adambiggerstaff7031]

i had to try and take out a 800 dollar loan just to try and pay my bills and its gonna cost me nearly 5000 to pay it back but i had no other options

[@stacymiller3362]

Hi,Text Freddy .. (614-585-3060) He’s an expert 💯 I got 15k$ within 10 minutes All thanks to him for helping with cash app flip, credit card flip He also works on SBA loan MONEY GRANT 💵💵💵👌 within a week, loan forgiveness. Text Freddy and thank me later This guy is a life saver. He his texted and trusted 💯💯💯

[@chrislince5720]

Bro, that is YOUR fault wtf

[@Judyssma]

I'll get a second job warehouse, Uber eats, flipping burgers, waitressing but no $5k that's crazy

[@misterhat5823]

So this is basically a payday loan for businesses. Regulators won't do anything about that, but move into action when it affects business. Swampy.

[@JP-wq6sb]

So pathetic to see a grown man whine about a business decision that he made, and signed a contract for. I've been offered these small business loans; I've never accepted one, but IF I HAD it would have been my decision to do so, and my consequences to deal with. High interest loans have been around for hundreds of years, in countries around the world. If you can't repay, don't sign.

[@chrisroland2738]

The hammer needs to come down heavily on all forms of banking and lending globally. These predator lenders are not the only culprits, the monolithic bankers are not much better, they just hide it better.

[@crand20033]

Cash advances on credit card are also high like 27%.

[@antonioromas3124]

They're not lending you piece of crap. They're buying invoice, its factoring.

[@rain7096]

👍

[@jayg5888]

But didn't these companies needed money and got it?

[@DistractedDaisy]

I’dlike to know if those lenders are getting money from US Pandemic loans!

[@terrybrown9348]

Duh it's high interest..the banks won't lend money to.these businesses

[@AccordionJoe1]

Never borrow money from a loan shark, including the sharks at the cash advance businesses. Better to go bust and start over.

[@bigernmahkracken7960]

How d Trump keep his wealth? He busted 4times and looking at a 5th once NYDA exposes his tax crimes.

[@herbolson8166]

His fault for not doing research on the company.

[@YTPartyTonight]

Yes and two or three or four wrongs don't make a right.

[@alanettenberg1560]

@@YTPartyTonight None of these companies force the business owners to take the loans. All of the details are spelled out in easy to understand language. If the applicant is not happy with the details then they should not sign the agreement. If they do not understand the details then have their lawyer look at it. They have no one to blame but themselves. They are crying to the public because they screwed up!

[@briand3029]

I first doible backed, triple backed, and edn quadripple backed to make sure this wasnt satire

[@LoveLife-gv8jg]

How are the company's predatory if the people signed the contract?

[@robertobrien4465]

Katie Porter needs to jump on this story!

[@passivelyike]

Vultures and sharks all do them. This industry needs to be regulated

[@terrybrown9348]

They are no.worse than the banks. Gimme a break

[@edenpagani1243]

400%!!! Holy F......This is ridiculous

[@harold8032]

Everyone complains about this. When student loans are way worse as they take adv of kids who don't know what a loan IS. But any reg from college? No , take this matter first and then the MCA

[@stevescarsfish2175]

😂😂😂😂 another dumb 💩that took the college bait. You deserve what you got pay your f***ing loans yourself.

[@kennethhall9202]

Put these people out of businesses

[@bigernmahkracken7960]

Think I borrowed money from this cat years ago cept our loan meeting was in a back booth of a downtown Pitt Pub. He promised to make my interest rate payments disappear if I missed a payment. .. Or was he going to make me disappear? I forget, there was no paperwork.

[@sweetlotusrain]

He must have incredibly poor credit to resort to accepting such high interest rates

[@sweetlotusrain]

Jen HM it’s egregious. But it should be illegal for any company to stamp interests rates that high.

[@GeraltBosMang]

Good job Donny.

[@BatistaInvests]

If you cant make 200% to 300% then you aren't going to be able to make this funding product work for you.

[@user-gc6my9jg2c]

Profit can be due to exploitation.

[@user-gc6my9jg2c]

Thus riches can belie the underlying poverty.

[@ministryoftruth8523]

This is what happens in a capitalist society; the laws favor haves and disparages the have nots.

[@briand3029]

U would think doing due dilligence ln your homework before sogning for a loan would be the first , i mean FIRST goalf of a business owner before anything else even before the first thought of a fart in the company's brick and mortar

[@michaelpowers6784]

I wonder who runs these companies……?

[@tanjab.5234]

Jesus saves

[@AnnaPilgrim]

My god these leeches stop at nothing! 400%!!???

[@BSinNYC]

I guess regulation isn't all bad, is it, Republicans. This guy got what he voted for. Thoughts & Prayers, MAGAt! 😂

[@princessdiamond879]

U poping in dat purple my lady😂🤞🌊😌😘😘😘😘💎🌬️💙☂️💜✨

[@stacymiller3362]

Hi,Text Freddy .. (614-585-3060) He’s an expert 💯 I got 15k$ within 10 minutes All thanks to him for helping with cash app flip, credit card flip He also works on SBA loan MONEY GRANT 💵💵💵👌 within a week, loan forgiveness. Text Freddy and thank me later This guy is a life saver. He his texted and trusted 💯💯💯

[@richardmaclean7581]

How many of them are Trump voters? How is that working out for you. 🤣

[@elram2649]

Exactly...and how many of them will still vote for him and the GOP regardless of going broke? They're sickos really.

[@richardmaclean7581]

El Ram Well now I’m bored. Republicans have gone quiet… I guess they have been enlightened. 😂 I liked them when they were stupid.

[@elram2649]

@@richardmaclean7581 😊🍻👍

[@Berengier817]

This is what unregulated capitalism does

[@weepair2]

Effing vultures.

[@kitsonk717]

I wonder who owns them? Betcha can guess!

[@mclarsen61]

Please take them down... and then jailtime 👍🤝

[@radwulfeboraci7504]

This will go well until they stumble across some Russians ... then Trump will say the investigations are hoaxes cooked up by deep state leftists and pardon them all.

[@interstateceo303]

Merchant cash loans are horrible!!

[@princessdiamond879]

🌆🌌🌠🤞✨Bless🌟🤭🌞🌊💜💙