Connect Miami – Expectations and uncertainty
Recently there has been a flurry of negative news articles from Bloomberg and others profiling the negative activities of several Issuers of Merchant Cash Advance. As usual, the political talking heads jumped on the wagon ostensibly to “protect small business owners” from the “predatory practices” of these evil predators.
The reality of course is profoundly different than the one portrayed by these targeted hit pieces even though many of the allegations of abuse are true. Good disinformation, which appears sincere and believable usually has elements of truth in it. In Miami, at the magnificent Eden Roc in South Beach the world of Alternative Business Financing came together to discuss the new issues that have drawn attention to the alternative business financing industry.
No such thing as bad publicity?
So they say! However what was interesting at the Debanked Connect Miami was a palpable sense of excitement and positive expectations. In fact, because of the negative press many participants expressed that they have seen more new business funding inquiries from merchants who only just now learned they can get quick Cash Advance Funding.
Now of course, politicians have become involved so there will most certainly be some ugly legislation meant to “protect small business owners” forthcoming. This is how politicians create jobs; they put barriers to doing business and cottage industries pop up overnight with the necessary legal work-around and, presto! More jobs!
Follow the Money
The easiest way to figure out what the motivations might actually be to launch this surprise, “journalistic” attack against Merchant Cash Advance companies is to follow the money. That is, why Cash Advance? Why now? It isn’t a long stretch before it becomes obvious; small business owners are seeking alternatives in droves and they must be scared away. Fear is a great motivator and it’s being used to cast shade on the whole alternative financing industry.
While Bloomberg was busy trashing the merchant cash advance companies they conveniently pass over the multiple federal criminal charges including fraud and money laundering that their sponsors have been CONVICTED of like Wells Fargo, Citibank, JP Morgan, HSBC and so many more!