07/21/2026
Please be aware of these scams!
⚠️ ATTENTION LOCAL BUSINESS OWNERS: Please read this before taking one of those "Fast Business Cash / Working Capital" phone calls! ⚠️
If you own a business, you probably get 5 to 10 calls or texts a week offering "instant funding with no credit check." They sound like a lifesaver when cash flow gets tight, but they are often Merchant Cash Advances (MCAs), and they are destroying small businesses.
Here is a real example from a recent court filing in Miller County against a local service company showing just how dangerous these contracts are (identifying details removed):
🚨 THE "FAST MONEY" TRAP IN REAL NUMBERS 🚨
💵 Cash deposited in account: $165,750
💸 Total repayment demanded: $263,500
🏦 The catch: Automatic withdrawals of $5,489.60 EVERY SINGLE WEEK
📈 Effective interest rate: Over 100% APR (equivalent to 180%+ compounding)
Imagine nearly $24,000 leaving your bank account every month on top of your payroll, inventory, rent, and overhead.
📉 HOW IT ENDED 📉
⏳ The business survived only 3 months before cash flows dried up and weekly withdrawals started bouncing.
💰 In those 3 months, the owner managed to pay back $74,144 in cash.
⚖️ The funding company immediately triggered an out-of-state binding arbitration clause and filed a motion in civil court.
🔨 THE FINAL BLOW 🔨
The court confirmed an arbitration judgment against the business AND the owner personally for $198,122.20. That includes unpaid principal, interest, legal fees, and arbitration costs.
Read that again: After paying back over $74,000 in cash, the owner was sued for $198,000. That is MORE money than they were ever given in the first place!
Because the owner signed a Personal Guarantee, the lender isn't just going after the business. They can now go after the owner's personal bank accounts and assets.
💡 WHAT YOU SHOULD DO INSTEAD 💡
📵 Hang up on unsolicited funding calls. Real lenders don't spam call you offering $100k+ with no paperwork.
🏛️ Talk to a local community bank or credit union. Ask about traditional lines of credit or SBA 7(a) loans. An SBA loan for that same amount would cost around $2,100/month instead of $23,800/month!
🧾 Consult a financial advisor or CPA before signing any contract labeled "Future Receipts Sale Agreement" or "Merchant Cash Advance."
Protect your hard work, your business, and your family's personal financial future.
Share this with any fellow business owners who need to see it! 💬👇
