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Merchant Cash Advances: It's the "Wild West Out There"

The merchant cash advance industry runs largely unregulated. People who take out these high-interest loans often put their livelihood and business at risk as they struggle to keep up with the payments.

In this report, NerdWallet found that many small-business owners who turn to merchant cash advances don’t understand the negative impact this quick form of funding can have on their cash flow. Comparison shopping among merchant cash advance offers is difficult, since terms can vary widely, and lending practices banned by regulators for other types of financing — including hidden fees and not disclosing the annual percentage rate — are rife.