Are small business owners stupid? No!

Comment Anonymous said...:

Let me guess, you are an academic who never had to make payroll or struggle for capital.

The tone of your blog paints anyone who has taken this type of capital as stupid or foolish.

I am glad to have the opportunity to make a choice between "expensive" capital and none at all. Without this type of loan, who would give me the money to grow my business, the bank? The mortgage industry? you?

Do you remember how the free markets work? Capital flows in because these companies can make a profit and do not have to worry about regulation created by beaurocrats to protect me from myself. If there is a great demand, it is because there is a great need not being met.

I am a small business owner and collectively I'm the largest employer in the Unites States. Please do not insult me with your blog. Give me credit for having the ability to make an intelligent business decision without your whinny, condescending comments.

thank you

February 1, 2008 4:51 AM

Reply:

Small business owners are not stupid and this blog does not attempt to give that message.

There may be a small number of small businesses that are purely seasonal that may benefit from this type of very costly financing, overall the small businesses that use this type of business loan / merchant cash advance only represent perhaps 5-10% of the users.

The rest are small business owners who sometimes feel that they need money to keep their small business ship from sinking, and they can get desperate enough that their emotions overrule their ability to think clearly and fully understand what they are being charged and how it will most likely effect their business and profitability.

That is where the Merchant Cash Advance Business Loan sharks come swimming out of murky waters to take advantage of these small business owners, especially in time of economic slowdowns and recession.

You sound like another Merchant Cash Advance broker that is trying to portray the type of business owner that takes this form of financing, as intelligent and business savvy, when you know that the goal is to get them to put as much money in your pocket as possible, and then come back to you for some more before they go bust.

You also would like people to believe that Merchant Cash Advances are a legitimate and fair type of financing, but you most probably know, somewhere in the back of your small business brain that it is not.

There are also the many smoke & mirror sales tactics that are most common in the Merchant Cash Advance industry some of them are explained in this blog, others will be explained in the future.

Merchant Cash Advances, Rip-off credit card processing accounts and highly expensive processing terminal equipment leases sucks out the remaining lifeblood from a struggling business.

You may as well of written your comment about intelligent homeowners struggling to own a home, taking out subprime mortgages they could not afford.

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