Small Businesses Turn to Lending Startups as Tariff Costs Mount

[BumRushDaShow]

Source: msn/Bloomberg

5h


(Bloomberg) -- Joseph Asia faced a dilemma. Tariffs imposed on his Chinese-grown, kosher frozen vegetables were jacking up his costs by about $2,000 for every shipping container entering the US. But the Brooklyn owner of Pardes Farms Inc. didn’t want to raise prices. So to help cover the tariffs and avoid a cash crunch, Asia swallowed hard and took out a $200,000 credit line charging 20%-plus interest. He has plenty of company.

Slope Inc., the JPMorgan Chase & Co.-backed lending startup that arranged the short-term financing, says applications for its credit lines surged 730% year over year in August. That’s when it became clear to importers like Asia that tariffs averaging 50% on Chinese goods would be in place until at least November as Washington and Beijing continue to negotiate.

“We’ve seen a huge demand spike because of tariffs,” Slope co-founder Alice Deng said in an interview. “The impact was immediate.”

President Donald Trump has said his tariff strategy will protect American industry and bring well-paying manufacturing jobs back to the US. A coalition of small businesses, including a fishing tackle retailer and a pipe manufacturer, disagrees and has filed a lawsuit challenging Trump’s authority to unilaterally impose tariffs. The US Supreme Court is scheduled to hear the case in November. But anyone importing products must pay the duties in the meantime, and many firms are stocking up now for the holiday shopping season.

Read more: https://www.msn.com/en-us/money/personalfinance/small-businesses-turn-to-lending-startups-as-tariff-costs-mount/ar-AA1MzBC0

[turbinetree]

1. That will help push the costs up and also accelerate the bankruptcies..............oh yippie................

[Bernardo de La Paz]

2. "Slope Inc.". It's a slippery slope. Are there loan sharks at the bottom? . . . . nt

[Prairie Gates]

3. Jesus, what a racket!

JP Morgan Chase essentially sunk tens of millions into these loan sharks masquerading as "B2B reconciliation specialists" in July of last year. The writing was on the fucking wall. Now the small businesses get terrorized by tariffs on the government end, and have to go run to these legalized loan sharks for credit on the business end.

All very lucrative. The company and their Wall Street backers should pay Trump a kickback.

Hahaha just kidding: they already do.

[Martin68]

4. And then the bankruptcies will begin.

[Marthe48]

5. Marietta Ohio longtime Hallmark store is closing

The county went 77% for traitor felon in 2024.

If only people had stopped living their bias and hate, we wouldn't be here. But vote against the common good, and you are voting against your own interests.

[republianmushroom]

6. Huh, small business understanding who has to pay for these tariffs

either they do or they have to raise prices so the consumer does. Seems the country of origins is not. Lied to again.

[Javaman]

7. This won't end well nt