As Cory Elliott’s construction company boomed, her debt woes began. She was indeed refused by 10 banking institutions for financing to enhance her St. Louis construction company, and a consultant that is financial hired recommended a popular alternative: a vendor cash loan.

Half a year later on, she had been having to pay over $14,000 a to service debt of $130,000 for two cash advances month. This sounds like payday loans for small businesses, as some critics have called merchant cash advances, you’d be on the right track if you’re thinking. Both customer pay day loans and vendor payday loans can sink borrowers in to a debt spiral of high-interest, short-term loans, small-business advocates state.

Merchant payday loans — a type of online small-business lending — are marketed as a real method to greatly help companies spend money on their future. Read more