[Sean Cash]

Take a look at this from BusinessWeek today:

"Like a merchant cash advance, an EasyPay loan gives businesses up to $100,000 in a lump sum payment, and collects fixed percentage of the merchant’s daily credit and debit card sales. Unlike cash advances, EasyPay is a real loan, with a fixed simple interest rate that works out to be about 12 percent on an annual basis. At that rate, the nonprofit is not covering its costs."

A 1.12 is not covering its costs so this non-profit group Opportunity Fund subsidizes the deals. Sounds kind of unfair that the losses are subsidized. How is the rest of the market supposed to compete?

And what does this mean for the industry from here on out?