Credit Card Debt Management

RapidAdvance and Humboldt Merchant Services have teamed up to revolutionize small business loans. Not sure of the interest rates on this option, but at least it’s interesting and gives small business owners more options.

RapidAdvance provides cash advances to businesses throughout the U.S., U.K. and Canada. Humboldt, meanwhile, is one of North America’s leading payment processors. Small- to mid-sized business owners will now have the option to get a loan, or “cash advance,” for business purposes. It might be to expand the business, purchase new equipment or inventory, etc.

Repayment of the cash advance would occur gradually, as a small portion of each transaction where the business owner is processing a customer’s credit card. These so-called merchant cash advances are unsecured loans with no business use restrictions, and have a high approval rating of about 80 percent, according to a press release.

It’s a good idea, supposing the fine print of the agreement would not defeat the purpose. One can’t help but wonder about that wonderful print everybody loves, the fees, the interest charges, the terms and conditions. One thing this venture does have going for it is that it joins together two reputable, well-established companies with proven track records of long-term stability and success. It’s not like it’s an uncertain new business venture.

However, with merchants already complaining about the merchants fees imposed by the credit card companies with each credit card transaction processed, one has to wonder whether business owners will really go for this. Will they be willing to have a loan repayment automatically deducted from their already slimming profits? It might be a tough sell indeed.