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Small Businesses Should Be Protected from Predatory Lenders

Too many owners sign away their rights without realizing it.

hidden dangers of predatory loans for small businesses
Always read the fine print.

Too many business owners sign away their rights without realizing it. Predatory lenders are offering small business loans with deceptive agreements and using shady collection tactics to take advantage of small business owners. Many of these loans, presented as “merchant cash advances”, have clauses that are used by lenders to collect money prematurely and take legal action against small businesses without warning. Since small-business lending is largely unregulated, requirements are not consistent and there is no clear disclosure of loan terms. Business owners would never sign this type of a loan agreement if they knew how much these loans put their business in jeopardy. In just a few years, businesses have been affected losing hundreds of millions of dollars.

Bloomberg reviews these issues with predatory lenders and possible solutions through legislation in an article titled “Protect Small Businesses from Predatory Lending”. Read the article here: https://www.bnnbloomberg.ca/protect-small-businesses-from-predatory-lending-1.1174803

December 11, 2018