Would an APR Help?

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Merchant cash advance industry hater Ami Kassar added to his collection of rants today in the Wall Street Journal by writing about the True Costs of Cash-Advance Loans.

Bloomberg BusinessWeek writer Pat Clark, knowing full well that Kassar and I have sparred online, tweeted:

merchant cash advance APRMy response:

Do I think merchant cash advances when structured as loans should include a prominently displayed APR on the contract?: Yes, though I believe this is less helpful than the dollar for dollar cost explanations that are already presented. But in the name of maximum transparency, it would be a good thing to have on there.

Do I think less business owners would use such loans if the APR was prominently displayed?: No

If DealStruck can make their model work, then great. What I want to know is, what happens to the businesses they won’t approve?

Last modified: April 20, 2019
Sean Murray

Category: ACH Advances, business cash advance, Loans, merchant cash advance, merchant financing, MPR Authored

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