Pittsburgh Post-Gazette: "When small businesses in need of quick cash end up with high interest debt
Updated: 15 hours ago
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.