Everest Business Funding on Ripoff Report. The business financing arena can be complex, and entrepreneurs will stub their toe on this pitfall or that drawback along the way. Everest Business Funding was one such player in the field that seemed to gain attention for all the wrong reasons.
Everest Business Funding on Ripoff Report:
The following exposé is a deeper inquiry into the allegations and complaints about Everest Business Funding by examining the sea of dissatisfaction and feelings of being cheated expressed by many of its clients.
What is Everest Business Funding?
Everest Business Funding depicts itself as an alternative financing company. Their target demographics include small to mid-sized companies in business.
Among the solutions they provide is the merchant cash advance, where a company receives a one-time lump sum but has to repay a percentage of its sales.
While this approach may support the companies in need, it has been controversial, especially given struggling businesses.
Complaints against Everest Business Funding vary from their predatory lending practices to obscuring terms and the levying of exorbitant fees.
There have been reports from several clients, who say that they fell into some unclear agreements whose true nature came out to be far from what was communicated in the first place.
1. Predatory Lending Practices:
Some have denoted Everest’s lending practices as predatory. When most think of “predatory lending,” they consider it lenders who are preying on uninformed borrowers.
What seems to be the problem in the case of Everest is that it is an accusation of the use of practices to enrol businesses in products that are not aligned with their best interest.
2. Obfuscation and Lack of Transparency
This litany of complaints is further underscored through the veil of non-transparency. Cases have been cited by customers where the full scope of repayment terms was never brought out and resulted in unforeseen financial stress.
Worse remained the use of jargon-laden contracts and lack of clear communication, adding only to this sorry list of woes, since many could indicate they had been swindled.
3. Exorbitant Fees and Penalties:
Another point of contention, however, is the fee structure with the funding solutions provided by Everest.
According to many customers, they were burdened with many fees imposed without proper notice or delineation upon the origination of the contract. Others have also reported surprise fees and fines that tainted the experience.
It is only in listening to the people who are most affected that one gets a sense of the full extent of their dissatisfaction. Many accounts describe a picture of firms laden with huge debts and constant calls for repayment.
One can feel the sense of betrayal; many of them curse themselves for laying their hands on Everest Business Funding.
Case Study 1: The Small Retailer
One micro-retailer simply shared how the promise of ready capital soon became a noose around their neck, in a cycle of ever mounting debt.
The merchant cash advance seemed to be a lifeline but turned into a noose as the daily payments slowly ate their cash flows, threatening their very existence.
Case Study 2: The Restaurateur:
Another restaurateur shared the same story of the Everest form of high pressure, leading to his claim that the rigidity of the repayment terms, coupled with the high borrowing cost, made walking a tightrope an apt description of the situation.
Legal and Regulatory Scrutiny
No sooner had those settlements been announced than regulatory agencies were flooded with complaints against Everest, stretching from Maine to California.
While all such investigations remain ongoing, the nexus of them has been to determine if Everest’s business model crosses over into illegality.
The Life on the Road Less Travelled
The Broader Implications:
No conclusive legal action has been taken, but the scrutiny lends credence to the allegations.
Everest Business Funding speaks to a bigger systemic problem throughout the alternative lending industry.
Aggressive selling, unclear terms, and punitive fees have been a sad pattern that expresses the need for better oversight and control in the space.
Steps for Reform:
With such issues in mind, voices are on the increase to push for reform. Industry experts and consumer advocates have begun to call for more regulation of some more stringent measures to prevent predatoriness and greater transparency in business.
Among the measures proposed are compulsory plain-language disclosure of all fees and terms, caps on interest rates and fees, and robust mechanisms for dispute resolution.
Everest Business Funding – Conclusion:
The ripoff report conducted on Everest Business Funding is proof enough that businesses seeking alternative financing should always be cautious.
As much as the idea of fast cash can be very attractive, so too is the importance of critical due diligence and proper understanding of the terms of the financial agreement.
Experience from people who have threaded the treacherous waters of merchant cash advances with Everest underlines the importance of vigilance and care on the road to acquiring business funding. Follow us on Facebook.
