True Interest Free Loans
We thought we’d heard it all: Free credit card machines, free POS systems, and now there’s even FREE money. According to their recent press release, Merchant Money in Spring, TX is now offering a 90 day INTEREST FREE loan to businesses that switch to their processing service. The catch? the loan is capped at 15% of their average monthly processing volume with a maximum loan of $5,000.
That means a business processing $10,000 on average can get a $1,500 loan just for changing their merchant account. That’s not that impressive and neither is the rest of the fine print, which includes the following:
- Minimum FICO score of 650
- Minimum 2 years in business
- Minimum $3,500 a month
$10,000 is enough to qualify for $12,000 to $15,000 on a Merchant Cash Advance. Though a Merchant Cash Advance is not free, it does allow the business owner to obtain enough capital to do something worthwhile. Not too mention there is no fixed timeframe for repayment.
So what is 15% of volume for a 90 day fixed term? Chump change. Maybe an interest free loan will make for good public relations but we think once their goodwill campaign starts facing defaults and losses, they’ll change their tune. Nothing spells disaster like an “interest free loan”. We wish them the best of luck.
– The Merchant Cash Advance ResourceLast modified: September 9, 2013
Sean Murray is the President and Chief Editor of deBanked and the founder of the Broker Fair Conference. Connect with me on LinkedIn or follow me on twitter. You can view all future deBanked events here.