Pittsburgh Post-Gazette: "When small businesses in need of quick cash end up with high interest debt
- Sophia Fang
- Sep 17, 2019
- 1 min read
Updated: Jun 17, 2021
Honeycomb Credit was recently featured in the Pittsburgh-Post Gazette as an example of how small businesses are using local lending options to refinance high-interest debt from merchant cash advance companies such as Kabbage. Honeycomb was able to work alongside Pete Tolman of Iron Born Pizza to help this growing business refinance a Kabbage loan.
"Mr. Tolman said he saw the merchant advance as a quick way to get a large influx of cash. But it got to a point where every dollar of revenue was committed to principal and interest debt repayment.
His situation changed over the summer when he was able to refinance $100,000 of the debt at a lower interest rate with a local fintech company called Honeycomb Credit and get help from the city’s Urban Redevelopment Authority.
With the Honeycomb loan, Iron Born Pizza’s interest rate came out to around 11.25%, which was a far cry from the the estimated 40% to 50% interest rate that Mr. Cook said Iron Born had been paying for the money it borrowed from Kabbage."
For businesses interested in using Honeycomb to refinance a Kabbage loan or refinance a merchant cash advance loan, learn more at honeycombcredit.com/refinance.
Cash flow problems always sound theoretical until a transaction fails at the wrong moment. That’s when everything becomes urgent instantly. I’ve seen small delays snowball into bigger issues just because nobody acted fast enough. In one case the quickest way forward was Apple Pay customer service number, not another round of guessing. Direct action beats overthinking every time in those situations.