No one could reasonably consider these new businesses loansharks, is that correct?
About how much is the interest rate on the cash advances, on average?
And could you tell me about some typical fees that first come to mind?
We sell our invoices to a merchant factor (as they are known). They are similar to banks - some are affiliated with or owned by big banks. The factor gets 1.5% of the total and they handle the collection - the merchant gets 80% of the money for approved customers and 50% for non-approved up front, without having to wait 30 - 60 days and hoping a check doesn't get lost in the mail.
It may look like a ripoff to a Socialist dunce who thinks "Everything should be FREEEEEE!", but merchant factoring is essential to many small businesses, and the fee is a pittance compared to what it costs to track and collect invoices yourself.
If Fauxcahontas screws this up it could force manye small businesses in America go under, and their owners to get jobs with big companies, and join unions, and pay dues, and have no more time or money to support Republican candidates, and...saaaaay, do you think maybe she's doing this on purpose? /s