Review – I’m having a hard time finding any value here

So, as far as I know, Merchant cash advances have been around for a very long time. A merchant cash advance (MCA) was originally structured as a lump sum payment to a business in exchange for an agreed-upon percentage of future credit card and/or debit card sales. Basically a Merchant cash advance is a payday loan for businesses, I guess if you put bells, whistles, stickers and pretty faces on a payday loan for inexperienced small businesses, you’ll be better able to see value in Clearbanc? But I don’t see it!

So when I read the Clearbanc frequently asked questions page, which from my perspective is the only page that I find provides any value on their website, I get the following:

How do I repay my advance?
Repayment is made from your future business revenue. A percentage (decided when negotiating your terms) of each transaction is applied towards repaying the advance until it is repaid in full. There is no set repayment date, as we understand your business can fluctuate throughout the year.

What is my repayment percentage?
The repayment percentage is decided when negotiating the terms of your advance. We typically take 1% to 20% of future revenue to keep a healthy cash flow in your day to day operations. We work with you to determine a rate that will be beneficial for everyone.
Clearbanc Frequently Asked Questions |

So yeah, for someone like myself, what I see is possibly maybe a better-structured business payday loan at best?

The reason why I’m writing this is that I was solicited by them, online and visited their website, on their front page the wording was rather vague, from my standpoint they were using Canadian entrepreneur Michele Romanow from the Canadian television show Dragons’ Den to get you to sign up. Dragons’ is basically the Canadian version of Shark Tank, so basically Aspiring Canadian entrepreneurs pitch business and investment ideas to a panel of venture capitalists (termed “Dragons”) in the hope of securing business financing and partnerships.

Now I don’t have time to delve into the business relationship of CEO & CO-founder Andrew D’Souza and President & co-founder Michele Romanow, but what I will say is that Clearbanc is legit, it’s not a scam or a fraud, but it’s a Merchant cash advance and these types of loans have been known to bankrupt small, medium and large businesses. When some people say that businesses are evil and politicians should tax businesses and force businesses to pay higher wages, I think people forget that a lot of businesses are in debt and they’re in the same types of debts as many employees. I’ve know business owners who were in more debt than the people they hired and we’re not talking good debt here, we’re talking about bad Merchant cash advance debt.

Being perfectly honest I’m surprised Michele Romanow would get involved in this type of business, but hey she’s worth almost $200+ million dollars, but just a warning to people thinking of applying for Clearbanc, from my standpoint I don’t see any value in this company, if you type merchant cash advances into Google you’ll see what I mean.

Merchant Cash Advances and Brick and Mortar Retail Bankruptcies

Now, if you’re wondering why a lot of retail businesses have gone bankrupt in recent years, well typically unwillingness to take Merchant cash advance or business owners willing to take on merchant cash advances often have a lot to do with bankruptcies. Now, most of these merchant cash advance cases are ignored by the media, small and medium-sized businesses aren’t viewed in the same fashion as employees who take out a payday loans. Even in Canada, Commercial real estate as an example isn’t as regulated as Residential real estate so the perception of why many businesses go bankrupt is often not a newsworthy headline story.

‘We’re coming after you’: Inside the merchant cash advance industry | Yahoo Finance

Because of exploding real estate prices, higher taxes and higher minimum wage costs, most businesses are trying to increase their online presence and in MY OPINION this is why Clearbanc is trying to capitalize on this market. This is all well and good and based on my reviews Clearbanc employees seem happy, I just don’t see the value in their company, possibly because they have a headstart on everyone else? But they’re a cash advance company for small businesses, there’s obviously a demand for their service, but I can’t help but think about the words “Predatory Lender” whenever I think about merchant cash advances.

This is basically why I’m not a fan of government wage and price-fixing or the government creating this illusion that private businesses have an unlimited source of capital. When the government paints business people as the root of all evil in society and uses taxes and price-fixing as their method of proof of their claims, businesses often end up taking on more debt and unnecessary risk, sad, stuff. Anyway, Clearbanc might be the best Merchant cash advance company in comparison to others so if you’re looking for a Merchant cash advance, consider them. I will not be recommending them at this time! Please do your research on Merchant cash advances before taking out one. They’re not as cheap as they seem!