How Two Kids Made Millions in Small Dollar Advances

Published: Tue, 10/06/15

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All of us in the PDL space are transitioning to new loan products. You MUST READ THIS FASCINATING story how 2 kids made a killing with merchant cash advances and sold their company to Wall Street for $40,000,000.

"Zeines and Hurwitz made their money in a field that’s now called merchant cash advance.

It’s a legal way to lend money to small businesses at interest rates higher than Mafia loan sharks once charged.

Completely unregulated, last year it surpassed the U.S. Small Business Administration as a source of loans for less than $150,000, according to the industry newsletter DeBanked, one of the few places with reliable information.

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The business was developed a decade ago in a boiler room full of ex-Lubavitcher Jewish teenagers in downtown Manhattan. They figured out how to hook people such as florists and pizzeria owners with promises of fast cash and discovered just how ridiculous the profits could be—even if it meant driving their borrowers into bankruptcy."

Read the rest of this fascinating piece here:
http://www.bloomberg.com/news/features/2015-10-06/how-two-guys-lost-god-and-found-40-million

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