So who is selling this insanley costly money?

There are at least 3 separate types of sales groups selling these crazy cash advances.

1: Companies that opened up to specifically sell this new type of financing. generally referred to as Merchant Cash Advance Companies.

2: Sub-Prime mortgage companies who have moved into this space as a result of the mortgage meltdown.

3: Almost the entire Credit Card Processing industry, some sell it because there is demand from some of their merchants, and they do not want to lose those merchants to other companies, who will provide the cash advance and takeover their credit card processing accounts.

Some do it because they want to make big commissions at the expense of desperate small business owners.

4: Anyone with a decent amount of ethical responsibility would advise their merchants very strongly not to sell their future revenues at such a ridiculous discount.