Why businesses accept MCAs under pressure

During the pandemic, mostly unregulated lenders went after struggling restaurants and music venues, charging at times sky high rates. Now, they’ve found a new market: small businesses that desperately need cash to pay tariffs.

Today on the show, the story of a financial lifeline that can turn into a financial choke hold.

Come see Planet Money live on stage in April! 12 cities. Details and tix here: https://tix.to/pm-book-tour. 

Related episodes: 
Can I get my tariff money back now? 
Three ways companies are getting around tariffs 

For sponsor-free episodes of The Indicator from Planet Money, subscribe to Planet Money+ via Apple Podcasts or at plus.npr.org. Fact-checking by Sierra Juarez. Music by Drop Electric. Find us: TikTok, Instagram, Facebook, Newsletter.  

To manage podcast ad preferences, review the links below:

See pcm.adswizz.com for information about our collection and use of personal data for sponsorship and to manage your podcast sponsorship preferences.

NPR Privacy Policy