Regulators stepping up oversight.
According to a February 19, 2024 article, an easy financing source pushes some small businesses into bankruptcy. A U.S. Consumer Financial Protection Bureau report said the use of merchant cash advances more than doubled in five years, with regulators stepping up oversight.
Small businesses struggling to find funding have turned to alternative options such as merchant cash advances in recent years. Such deals have threatened the existence of some of these mom-and-pop operations.
For more information see the full article in The Wall Street Journal.