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TAB Bank  concluded the third quarter of 2025 with a significant lending surge, successfully closing $67.3 million in new credit facilities spanning 200 diverse deals. This robust performance demonstrates the bank's deep commitment to providing agile capital solutions and highlights a resilient demand for flexible financing in today's dynamic commercial credit market. Key Takeaways Total Volume & Velocity:  $67.3 million across 200 transactions suggests an average deal size of approximately $336,500. This high-volume, mid-to-small ticket velocity indicates a strong focus on the core small-business market, which often requires faster turnaround times than larger corporate deals. Strategic Diversification:  The total financing covered a broad spectrum of products, including traditional working capital, equipment financing, accounts receivable funding (factoring), and small business term loans/lines of credit. This "all-weather" approach positions TAB Bank as a comprehensive partner rather than a single-product provider, mitigating risk across different economic cycles. Targeted Sector Wins:  The deal highlights show commitment to high-demand, infrastructure-critical sectors: A $15 million  deal for a nationwide transportation and logistics company in Missouri reaffirms the strong need for ABL solutions to fuel supply chain operations. An $11.5 million  facility to an Illinois-based distributor and processor of stainless steel and aluminum coil products highlights continued demand in the industrial and metals processing spaces. Commitment to Main Street:  Beyond the large enterprise deals, the bank aggressively funded term loans and lines of credit ranging from $25,000 to $250,000. This focus on lower-end ticket sizes is vital for operational cash flow for smaller, less-established businesses, positioning TAB as a key driver of local economic growth.

At Funder Intel, we're proud to offer the first-ever MCA Underwriting course , a trailblazing training program that's already helped hundreds of professionals deepen their understanding of revenue-based financing (RBF) and merchant cash advance (MCA) risk analysis. But we’re not stopping there. Always Evolving, Always Improving Our mission is to stay ahead of the curve, continuously updating the course to reflect today’s underwriting realities, not last year’s. That’s why we’re thrilled to announce a powerful new addition to the course… 📣 Introducing Guest Instructor Sherif Hassan of SYH Strategies Sherif Hassan brings more than 15 years of experience  in the alternative business lending industry, with a specialized focus on MCA and RBF underwriting, portfolio risk management, and pricing models that funders can actually profit from. Sherif is the founder of SYH Strategies , a consulting firm trusted by top funders for designing and optimizing their entire credit and underwriting systems. What Sherif Covers in the Course Sherif teaches two brand-new modules , now included in the core course, where he breaks down: 📊 Advanced Underwriting Principles 💰 Pricing Strategies That Drive ROI 📚 The Underwriter's Role in Building a High-Quality Book of Business Whether you're a new broker, an aspiring underwriter, or someone looking to refine how you analyze deals, Sherif’s insights will change how you think about risk and how you approach each file. Already Enrolled? If you signed up for the MCA Underwriting Course within the last 8 weeks , you’ll get immediate access  to the new guest instructor modules (as long as your course access has not expired). For any questions about your access or login help, email us at 📩 info@funderintel.com Not Enrolled Yet? What Are You Waiting For? Now is the perfect time  to take the leap, as hundreds have before you. With Sherif Hassan’s guest modules now included, the MCA Underwriting Course is more powerful than ever. Enroll in the course here .

In today’s lending environment, small business owners expect speed, transparency, and a digital experience that feels like working with a top fintech. Unfortunately, most loan brokers and lead generators still rely on outdated PDFs, email attachments, and manual processes. That gap creates an opportunity. If you’re a broker or lead generator, imagine offering your clients: A branded client portal  where they can submit applications, upload documents, and track progress. An interactive funding options assessment  that engages prospects and pre-qualifies them before you even pick up the phone. A deal tracker or calculator  that makes you look more like a tech-enabled lender than a one-person brokerage. Until recently, building tools like this meant spending thousands on developers and waiting months to launch. But with Base44 , an AI-powered app builder, brokers can now create their own apps and portals in days, without writing a single line of code . Why Digital Tools Matter for Brokers and Lead Generators Your clients are used to Amazon-style experiences, mobile banking apps, and fintech lenders that provide instant access to information. Competing against that with spreadsheets and email chains makes it harder to win deals and harder to keep clients engaged. Here are three reasons why investing in custom digital tools pays off for brokers: Professionalism & Credibility  A custom portal or tool sets you apart from competitors. Instead of looking like a middleman, you look like a modern financial partner. Efficiency  No more chasing documents across 20 email threads. A portal centralizes everything in one place, saving you hours each week. Lead Capture & Nurturing  Interactive tools like funding assessments or calculators don’t just provide value — they also capture leads automatically and help pre-qualify prospects. In other words: the right tool doesn’t just improve operations, it becomes a sales funnel . What Brokers Can Build with Base44 Base44  is a no-code app builder that uses AI to accelerate development. Instead of hiring a developer, you describe what you want, drag and drop components, and launch a working app that’s branded to your business. Here are some real-world examples of what brokers and lead generators can build with Base44: 1. Funding Assessment Tools Want to attract more leads? Build an interactive quiz where business owners answer a few questions and receive funding recommendations. Example: “Fund-Check”  — an app built in Base44 that helps users explore different financing options and get personalized recommendations. Brokers can adapt this to capture emails before showing results, turning it into a powerful lead generation funnel. 2. Client Portals A secure login space where clients can: Submit funding applications. Upload bank statements or tax returns. Track the status of their deal (“Received → In Review → Offer Sent”). 3. Deal Trackers & Dashboards Give clients a real-time view of where they stand. Instead of asking “what’s the status?” they can log in anytime to check. 4. Custom CRMs or Intake Systems Need a lightweight CRM for your brokerage? Base44 can create one — without paying $100/month per user. 5. Client-Facing Calculators From revenue-based financing estimators to loan affordability calculators, you can create branded calculators that capture leads and establish authority. Case Example: Fund-Check To prove how accessible Base44 is, I built a tool called Fund-Check . It allows users to explore major business financing options (term loans, SBA loans, equipment financing, credit lines, MCAs). It walks them through a short assessment to recommend the best fit. It feels like a fintech product — but it was built in Base44 with no code . The entire build took less than a weekend. That means you could launch your own broker-branded tool  just as quickly. How This Benefits Brokers and Lead Generators If you’re a broker or lead gen company, here’s what building with Base44 can unlock for you: Differentiate Your Brand : You’re not just another broker — you’re offering technology that adds value. Generate More Leads : Funding assessments, calculators, and portals attract attention and capture data. Close Deals Faster : Portals reduce friction and keep clients engaged throughout the funding process. Look Like a Fintech : You instantly level up your professional image, making it easier to win trust. And the best part? You can do it without hiring developers or investing tens of thousands of dollars . Why Base44 Is Perfect for Brokers No Coding Required  → If you can drag, drop, and type, you can build an app. Fast to Launch  → Build a working prototype in hours, not months. Custom Branding  → White-label the tool with your logo, colors, and domain. Affordable Plans  → Pricing starts at just $20/month, making it accessible to solo brokers and small firms. Plus, every tool you build becomes a reusable asset you can improve over time. How to Get Started Pick One Use Case Don’t try to build everything at once. Start with a funding assessment quiz, a calculator, or a simple client portal. Use Base44’s AI Builder Describe what you want, let the AI set up the foundation, then tweak it with drag-and-drop editing. Launch & Test Share the tool with a few clients or prospects. Watch how they use it and collect feedback. Iterate & Expand  Add features, improve the user experience, and eventually roll out multiple tools. Final Thoughts The future of brokerage and lead generation is digital-first . Clients don’t just want access to capital — they want a smooth, modern experience. By building your own portals and apps, you elevate your business from “traditional broker” to “tech-enabled partner.” With Base44 , you can build these tools yourself in days — at a fraction of the cost of custom development. If you’re ready to give your brokerage the fintech edge, start here:  👉   Try Base44 today

In another major move for embedded lending, Uber Eats has officially partnered with Pipe to offer revenue-based capital directly through its restaurant management app, bringing fast, flexible funding to restaurants at the point of need. In a world where small businesses continue to face hurdles accessing traditional loans, partnerships like this are reshaping what lending looks like, seamlessly built into the platforms businesses already use every day. Key Highlights of Uber Eats Pipe’s embedded financing tools are now available inside the Uber Eats Manager app , which is used by thousands of restaurants to run their day-to-day operations. Pre-approved offers  will appear to eligible restaurants based on revenue and performance, no credit checks, no FICO scores, and no personal guarantees required. Pipe uses AI to analyze 6 months of anonymized credit card transaction history  from Uber to determine funding eligibility and amounts. Once a restaurant opts in and shares its data, capital can be delivered in as little as 24 hours . 98% approval rate  for applicants, according to Pipe CEO Luke Voiles. Flexible repayment terms that align with revenue flow, not fixed-term loans , making it easier for restaurants to pay back funds during slow periods. Uber previously offered small business grants in partnership with Visa in 2022, but this marks a shift from one-time aid to scalable, embedded capital solutions . The Rise of Embedded Lending What we’re seeing here is the continued mainstreaming of embedded lending , a trend where financial services are built into the very tools small businesses already rely on. Uber Eats is not a fintech company, but by embedding Pipe’s capital access into its platform, it becomes a lender in the eyes of its restaurant partners. It’s frictionless, it's contextual, and it’s likely to be highly effective. This model isn't unique. We've already seen: Wix Capital : Offering working capital directly to eCommerce users. Squarespace Capital : Recently launched their own capital offering following earlier partnerships with Novo. Shopify Capital : A long-time embedded finance player in the space. Now Uber Eats joins the pack , not by becoming a lender itself, but by enabling lending within its ecosystem. This isn't just about new revenue streams. It’s about platform loyalty , merchant stickiness , and unlocking SMB growth  at the digital frontlines.

The embedded lending market continues its steady expansion as Fundbox , the embedded capital infrastructure provider, announces its integration with EverCommerce  (NASDAQ: EVCM) platforms. The partnership brings capital access directly into the SaaS tools used by over 350,000 small businesses across multiple countries, adding another data point to the growing embedded finance trend. Vertical-Focused Embedded Fundbox Lending Grows This collaboration targets service-based SMBs through EverCommerce 's EverPro business unit, specifically integrating Fundbox 's lending capabilities into the Joist and Invoice Simple platforms. These tools serve contractors and home service professionals across the US, UK, Canada, and Australia with invoicing, payments, and project management solutions. The partnership represents the continued maturation of vertical-specific embedded lending, where financial services providers are increasingly focusing on particular industry segments rather than broad horizontal approaches. Service-based businesses present unique cash flow challenges—upfront material costs, payroll management between jobs, and payment delays—that make them natural candidates for integrated capital solutions. Fundbox  CEO Prashant Fuloria emphasized their position in the market: "As the pioneer in embedded capital for SMBs, Fundbox  has built in-product workflows that enable convenient access to capital." While Fundbox  was indeed early to the embedded capital space since 2013, the market has since attracted numerous competitors offering similar integrated funding solutions. Standard Embedded Lending Features The integration follows familiar embedded lending patterns: seamless access to capital within existing business management tools, mobile and desktop compatibility, and data-driven underwriting using information already flowing through the platform. Fundbox 's system evaluates businesses using invoice data and bank account transactions—an approach that's become standard practice among embedded lending providers. Josh McCarter, CEO of EverPro, highlighted the practical benefits: "Cash flow optimization is a priority for our customers. They're not just running businesses—they're on job sites, coordinating crews, and managing clients." This focus on workflow integration reflects how embedded lending has evolved from standalone applications to truly embedded experiences. Market Momentum in B2B SaaS The Fundbox  and EverCommerce  partnership underscores the continued momentum in B2B SaaS-integrated lending. As vertical SaaS platforms mature and seek additional revenue streams, embedded financial services have become an increasingly common expansion strategy. EverCommerce 's platform, serving over 725,000 global service-based businesses, provides Fundbox  with substantial distribution potential. This trend has been accelerating across various industry verticals. Construction, healthcare, professional services, and other sectors are seeing their specialized software platforms add integrated lending capabilities. The approach makes sense: these platforms already capture the financial data needed for underwriting while providing natural integration points for capital deployment. Expanding Geographic Footprint The partnership extends Fundbox 's reach internationally through EverCommerce 's presence in the UK, Canada, and Australia. This geographic expansion reflects the broader globalization of embedded lending services, as successful models developed in one market are adapted for others. Fundbox 's track record—helping over 150,000 small businesses access more than $6 billion in capital—provides a foundation for this expansion, though they enter markets where local and international competitors are already establishing embedded lending presences. Industry-Specific Focus Gains Traction The service industry focus of this partnership highlights a growing trend toward industry-specific embedded lending solutions. Rather than generic small business funding, providers are increasingly tailoring their offerings to specific sectors with unique cash flow patterns and business models. Contractors and home service professionals represent an attractive segment for embedded lenders due to their predictable revenue patterns through recurring customers, project-based cash flows, and integration with invoicing systems. These characteristics make underwriting more straightforward while providing clear use cases for deployed capital. Adding to Market Options For service-based SMBs using Joist and Invoice Simple, the Fundbox  integration represents another financing option in their existing workflow. While it provides convenience and potentially faster access to capital, it joins an increasingly competitive landscape of embedded and traditional lending options targeting similar businesses. The partnership demonstrates the continued viability of embedded lending business models, particularly when focused on specific industry verticals. As B2B SaaS platforms seek to expand beyond their core offerings, financial services integration has proven to be a sustainable path for growth. Market Evolution Continues The Fundbox  and EverCommerce  partnership reflects the embedded lending market's ongoing evolution from novelty to standard feature set. As more vertical SaaS platforms integrate capital solutions, the focus shifts from simply offering embedded lending to optimizing user experience, competitive terms, and specialized industry knowledge. This development reinforces the embedded finance trend's staying power while highlighting the opportunities for continued market expansion as more B2B platforms recognize the value of integrated financial services. The partnership adds another piece to the growing embedded lending ecosystem, particularly in the underserved but attractive service industry vertical.

Football, food, drinks, and networking, what better way to spend a Monday night? On Monday, September 29th , Funder Intel is hosting a tailgate party in the ORANGE LOT at Hard Rock Stadium  before the Miami Dolphins take on the New York Jets  on Monday Night Football. This is your chance to connect with brokers, funders, lenders, fintech providers, and industry partners in a fun, relaxed environment before heading into the game. What to Expect at the Tailgate 🍔 Free food and drinks  provided by Funder Intel 🍻 A lively tailgate atmosphere with industry peers 🤝 A chance to network outside the office and strengthen relationships Whether you’re there to close deals, cheer on the Dolphins or J-E-T-S, or just enjoy a great night out, this tailgate is the perfect place to kick off the evening. Football Game Tickets Funder Intel has a limited number of game tickets available for purchase directly through us , but plenty of tickets remain available on public platforms like Ticketmaster. If you’re planning to attend, we encourage you to grab your tickets early and RSVP for the tailgate so we know you’re coming. Event Details 📅 Monday, September 29, 2025 📍 Hard Rock Stadium – ORANGE LOT ⏰ Tailgate begins at approx. 5pm RSVP Today The tailgate is free to attend , but we ask that you RSVP so we can plan food and drinks accordingly. 👉 Click here to RSVP for the Tailgate

Coinbase CEO Brian Armstrong recently addressed growing tensions between fintech companies and traditional banks. In an interview published by DL News, Armstrong made it clear that Coinbase no longer sees itself as just a crypto exchange. Instead, the company is evolving into a comprehensive financial services platform, intending to become a primary account provider for its users. Armstrong criticized legacy banks for their resistance to stablecoin adoption and other digital financial innovations. He argued that concerns about deposit outflows are overblown and suggested that regulatory momentum is shifting in favor of companies like Coinbase. Key Takeaways Coinbase's strategic shift - Armstrong confirmed that Coinbase is focused on expanding beyond cryptocurrency trading. The company aims to offer a broader suite of financial services, including payments and potentially banking products, within a single unified app. Pushback on stablecoin regulation - Armstrong responded to traditional banks who are lobbying for stricter stablecoin rules. He believes that these efforts are more about protecting outdated business models than about addressing actual risks. Supportive regulatory outlook - Armstrong expressed optimism about the direction of U.S. regulation. He pointed to recent developments in crypto-friendly policy proposals and emphasized Coinbase’s role in shaping the future of financial access. The Fintech Super App Movement Is Accelerating (Coinbase) Coinbase’s announcement reflects a broader trend in fintech. More platforms are integrating embedded financial services to deepen relationships with users and increase revenue opportunities. We’ve seen this play out with companies like Squarespace, which recently launched its own lending product for small businesses, and Wix, which began offering working capital to its customers. Stripe has expanded Stripe Capital internationally, and Pipe is now working with Uber Eats to deliver flexible funding to restaurants directly inside the app. These moves are not isolated. They show how modern platforms are using their access to transaction data, customer behavior, and engagement to create seamless lending and banking experiences. This not only improves the user experience but also reshapes how small businesses and consumers access financial products. Coinbase stepping into this space reinforces what many in the industry already expect: embedded finance is not just a feature, it is becoming the foundation of modern business tools.

LendOS, a rising fintech platform, has secured its Series A funding round  with a major backer, Blackstone . This investment marks a major milestone for the company, signaling strong confidence from institutional capital in its business model and market potential. What We Know So Far (LendOS) The funding round was led by Blackstone, a global investment firm with deep pockets and influence in the finance and real estate industries. LendOS intends to use the capital to scale operations , expand its product offerings, and invest in technology and hiring. The fintech operates in the embedded finance/business lending space, serving small to medium businesses with faster, technology‑driven capital solutions. This raise follows increasing investor interest in platforms that integrate financing directly into business workflows, and that reduce friction (e.g., fast approvals, minimal paperwork, or alternative underwriting criteria). Key Implications For small businesses, this means more players able to offer fast, embedded funding. LendOS could become a solid alternative to incumbents and existing fintechs. For the fintech ecosystem, Blackstone’s participation suggests that institutional investors are betting on embedded finance being more than a trend, it’s becoming foundational.

Last month, we hit the floor at the Brokers Expo in New York City to capture what makes this industry tick, the people behind the deals, the platforms, and the ideas shaping the future of business lending. We caught up with leaders from across the funding ecosystem, including fintech builders, broker partners, and service providers. These brief interviews provide valuable insights into how companies are adapting, innovating, and supporting their partners in today's market. It’s all part of our mission to bring you closer to the voices and stories that matter in commercial finance.

LendingTree just dropped its annual small business loan denial study, and on the surface, it looks... fine? A 21% denial rate for loans, lines of credit, and merchant cash advances, basically unchanged from 22% in 2023. But dig into the data, and you'll find something way more interesting: the traditional small business lending system is quietly collapsing for the people who need it most. And suddenly, those Parafin and Worldpay announcements we've been covering make a lot  more sense. Before diving into the situation, it's important to understand what businesses were applying for. The LendingTree study tracked three primary financing products: traditional term loans (lump sums repaid over a set period with interest), lines of credit (borrow-as-needed revolving credit up to a limit), and merchant cash advances (advances on future revenue repaid through daily or weekly sales percentages). Each serves a different purpose, term loans for major investments, such as equipment or expansion, lines of credit for managing cash flow fluctuations, and MCAs for quick capital needs, despite their typically higher costs. These aren't exotic financial products; they're the basic toolkit that small businesses use to manage growth, navigate seasonality, cover unexpected expenses, and maintain operations during slow periods. The Headline Number Hides A Broken System Sure, "1 in 5 denied" sounds manageable. Until you realize: Black-owned businesses:  39% denied (more than double the overall rate) SBA loans:  45% denied (nearly half!) Businesses with 1-4 employees:  26% denied (5x higher than large firms) CDFIs—the lenders specifically designed to help underserved businesses:  34% denial rate (the highest among all lender types) Let that last one sink in. Community Development Financial Institutions, organizations whose entire mission  is serving borrowers that traditional banks reject, are denying applicants at a higher rate than anyone else. That's not a bug. That's a broken system. The SBA Problem: When "Help" Requires A Manual Here's a wild stat: 45% of SBA loan applicants got rejected in 2024. The Small Business Administration, literally a government agency created to help small businesses access capital, denies nearly half  of all applicants. Why? LendingTree's Matt Schulz points to a few reasons: Revenue and employee limits that disqualify "too big" businesses Personal credit score requirements (typically need 680+ FICO) Usually need 2-3 years in business for SBA 7(a) loans Complex application requirements Translation: The government's small business lending program is harder to qualify for than most commercial loans. CDFIs Aren't Saving Anyone Remember that Richmond Fed report on CDFIs we analyzed? The one showing softening demand, capacity constraints, and declining bank partnerships? Now we know the other side of the story: CDFIs are rejecting borrowers at 34%. Think about the logic here: Traditional banks reject risky borrowers Those borrowers apply to CDFIs (mission-driven lenders designed for exactly this) CDFIs reject them at an even higher rate Borrowers are... out of options? This explains why CDFIs reported declining demand in the Richmond Fed survey. It's not that small businesses need less capital, it's that borrowers are learning not to bother applying. And this is exactly the gap that embedded finance platforms are exploiting. The Embedded Finance Boom Let's connect the dots across our recent coverage: The Traditional System Is Failing: 21% overall denial rate 45% SBA denials 34% CDFI denials Black-owned businesses denied at 39% Tiny firms denied 5x more than large ones The Embedded Solution Is Scaling: Parafin:  $360M forward flow commitment, $14.5B in offers extended Worldpay:  Integration to first loan in 13 days, embedded lending going live across their platform base Inktavo (Worldpay customer):  $14.2M deployed through embedded capital See the pattern? Traditional lenders, including mission-driven CDFIs, can't or won't serve micro-businesses. Meanwhile, embedded finance platforms that underwrite based on actual transaction data  rather than credit scores and tax returns are deploying billions. The Demographics Tell The Real Story The denial rate disparities are staggering: By Race: Black-owned:  39% denied Hispanic-owned:  29% denied Asian-owned:  24% denied White-owned:  18% denied By Company Size: 1-4 employees:  26% denied 50-499 employees:  5% denied By Revenue: $50K-$100K annual revenue:  35% denied $10M+ annual revenue:  4% denied The system is literally designed to serve businesses that don't need the help  while rejecting those that do. And here's the kicker: When you're a 3-person business making $75K/year, your "financials" look risky on paper. But if you're processing $50K/month through DoorDash or selling $30K/month on Amazon, the platform has perfect visibility  into your actual business health. Traditional lenders see a bad credit score and weak financials. Embedded finance platforms see consistent cash flow and growing transaction volume. Guess which one makes better lending decisions? The Business Industry Breakdown Is Revealing Highest denial rates by industry: Retail:  25% Leisure and hospitality:  24% Manufacturing:  22% These are exactly the industries where embedded finance is gaining the most traction. Why? Retail:  Already selling through platforms (Shopify, Amazon, Square) Hospitality:  Already using integrated POS systems (Toast, 2Touch) Manufacturing:  Supply chain finance and B2B platforms emerging The businesses being rejected by traditional lenders are exactly the ones that platforms can serve better through embedded capital. The Uncomfortable Truth About Credit Access Here's what the data is really saying: Traditional financial infrastructure was built to serve traditional businesses.  You know, the kind with: Physical locations Multiple years of audited financials Real estate to use as collateral Steady, predictable cash flows Good personal credit from the owner But the modern small business landscape looks nothing like that. It's: E-commerce sellers with no physical location Gig economy businesses with variable income Platform-dependent merchants (DoorDash dashers, Amazon sellers) Immigrant entrepreneurs with thin credit files Side hustles that grew into real businesses The denial rates aren't high because businesses are riskier. They're high because the underwriting models are outdated . Embedded finance platforms aren't being generous, they're using better data. When you can see real-time transaction volumes, customer acquisition costs, inventory turnover, and seasonal patterns, you can make smarter lending decisions than someone reviewing a FICO score and last year's tax return. The Pattern Is Clear Let's put all the pieces together: Traditional lenders (including CDFIs) are rejecting 21-45% of applicants The rejections are concentrated among exactly the businesses that platforms serve : small, non-traditional, diverse-owned, platform-dependent Embedded finance infrastructure is scaling rapidly : $360M commitments, 13-day integrations, billions deployed Interest rates remain punishingly high  (7.4%) even for approved borrowers The conclusion is obvious: We're watching the small business lending market bifurcate in real-time. Track A: Traditional businesses get traditional loans at traditional rates with traditional hassles Track B: Platform-native businesses get embedded capital through the platforms where they operate, often with better terms and instant decisions And Track B is growing way  faster than Track A. Embedded platforms are approving merchants in real-time, charging competitive rates, and deploying billions in capital. Data Source:  LendingTree 2024 Small Business Credit Survey analyzing Federal Reserve SBCS data from Sept-Nov 2023 through Sept-Nov 2024.

Weekly Payments on Money He Shouldn't Need to Borrow Viresh Varma, 64-year-old CEO of AV Universal Corp., a small footwear company selling through Macy's, Nordstrom, and DSW, can't sleep anymore. He needed to take out a $250,000 loan to pay his tariff bill on a container of shoes he imported from India for the holiday shopping season, according to a CNBC article. The terms were not great: weekly payments and a 32% interest rate. But without it, he'd have nothing to sell during the holidays, which account for 40% of AV's annual revenue. Varma didn't have the cash on hand to pay the duties, which he said used to be around $7,500 for a similar-sized container before President Donald Trump's new tariffs. The math is staggering: a duty bill that jumped from $7,500 to an amount requiring a $250,000 loan, that's more than a 3,000% increase in what he needs to front just to get his products into the country. "We've reduced some salaries. We had planned to hire some people we're not going to hire anymore," Varma told CNBC. The loan payments are eating into everything. If sales don't materialize after raising prices, layoffs are next. Mortgaging the House for Christmas Lights Jared Hendricks built Village Lighting over 20 years, making Christmas decorations and selling through Walmart and Target, per the CNBC article. Every year, he uses a strategic line of credit to manage his seasonal business: just before Christmas, Hendricks uses a $2 million line of credit he took out against his home to buy inventory for the following year's holiday season. He then uses that eventual revenue to pay back the debt. It's a tight but manageable cash flow cycle, or it was. This year, he had to use that line of credit to pay his tariff bill instead. Think about that. The money earmarked for buying next year's inventory, the credit line secured by his personal home, now goes to the government just to clear customs on products he's already ordered. "Hopefully I can turn around and mark things up enough for people to buy them from me so I can pay back my tariff debt," Hendricks said. "It's to the point now where it could kill us, it could take us down, and I could lose everything". Then he added something that should alarm every entrepreneur: "Being a small business owner isn't worth it when your country turns on you". The Scale of the Problem These aren't isolated cases. CNBC interviewed nearly a dozen small business owners to understand the financial impact, and the numbers are brutal: $856,000 : The average annual cost to small business importers, according to the U.S. Chamber of Commerce. Small businesses represent 97% of all U.S. importers. $90,000 : The average tariff cost per small business from April to July 2025 alone, that's just four months. 62% : Percentage of small businesses that report tariffs have impacted sourcing and operations. When you're a small operation running on thin margins, these aren't expenses you can absorb. They become debt obligations. Why Debt Becomes the Only Option for Businesses Tyler Higgins, managing director and supply chain specialist at global consulting firm AArete, explains: "Larger businesses just have more resources and more ability to disperse costs". Big companies stockpile inventory ahead of tariff deadlines, spreading costs across thousands of units. They have established credit lines, negotiating power with suppliers, and the ability to absorb short-term losses while smaller competitors fold. Small businesses have none of these advantages. They can't stockpile because they lack warehouse space and capital. They can't negotiate better terms because they lack volume. And they can't tap credit markets easily because banks demand multi-year business plans for credit approval, but trade policies change weekly. So they end up taking whatever financing they can get, even at 32% interest. Even if it means mortgaging their home. Because the alternative is shutting down. The Credit Catch-22 Here's the impossible position small importers face: Tariffs spike unexpectedly, creating immediate cash needs They don't have cash reserves to pay duties upfront Banks see volatile costs as evidence of poor management, not policy chaos Traditional credit becomes harder to access They're forced into high-interest loans or personal guarantees Debt service cuts into already-thin margins They raise prices to cover costs Sales drop as customers balk at higher prices Revenue falls while debt payments remain fixed The business spirals With 37% of small businesses having access to business credit, most lack options when emergencies hit. Tariffs have created an emergency that's been ongoing for months. The Policy Whiplash Eight major tariff adjustments in the past 12 months have created a policy whiplash that large corporations can navigate but small businesses cannot. When Trump eliminated the de minimis exemption for goods under $800, four million packages daily lost duty-free status. That's 92% of all cargo facing tariffs, and small businesses couldn't plan for it. S&P Global called the suspension of this rule "the real inflection point" for how hard tariffs would bite. They were right. What This Really Costs Trump's tariffs will reduce U.S. GDP by 0.8 percent before foreign retaliation, reduce market income by 1.5 percent in 2026, and amount to an average tax increase per U.S. household of $1,300 in 2025 and $1,600 in 2026, according to the Tax Foundation . But those are macro numbers. The micro story is Viresh Varma making weekly payments at 32% interest to pay a tax bill. It's Jared Hendricks staring at his house, wondering if he'll lose it to tariff debt. The Bottom Line When small businesses have to borrow money, at any interest rate, just to pay government duties on products they've already purchased, we've crossed a line. This isn't about growth capital or expansion financing. This is survival debt. Small businesses routinely represent more than 40% of the nation's GDP and employ nearly half of the American workforce, according to the U.S. Chamber of Commerce. When these businesses are forced into debt spirals by unpredictable policy changes, the entire economy feels it. The question small business owners are asking isn't about trade policy theory or manufacturing reshoring timelines. It's much simpler: How do I pay this bill? And increasingly, the answer is: Go into debt and hope you survive.

Confidence in the equipment finance sector remained resilient this October, with industry executives signaling steady optimism despite economic headwinds. According to the latest Equipment Leasing and Finance Foundation Monthly Confidence Index , confidence scored 60.1, up slightly from September’s 59.9, marking five consecutive months of positive sentiment in the $1.3 trillion market.​ Key Insights of Equipment Finance Over a third (37.5%) of industry leaders expect business conditions to improve through early 2026, and more than half (54.2%) anticipate stability for the rest of 2025.​ Almost a quarter (25%) foresee easier access to capital, while employment expectations softened slightly, with only 25% planning new hires (down from September’s 36.4%).​ Steady portfolio performance and solid demand for equipment leasing and loans are cited as primary drivers of confidence.​ What’s Driving the Optimism? The sector’s resilience is underpinned by pent-up corporate spending and healthy demand from utility, construction, and manufacturing clients. Recent policy shifts, like bonus depreciation and anticipated interest rate cuts, are beginning to provide additional tailwinds, especially for businesses investing in capital equipment assets.​ Broader Context: Navigating Headwinds Despite optimism, leaders continue to monitor challenges such as rising tariffs, shifting interest rate environments, and supply chain volatility. Yet, ongoing year-to-date growth in new business volume and portfolio stability signal that demand for equipment financing remains on firm footing. The industry's ability to adapt to these external shocks underscores the importance of equipment finance as a flexible, business-critical solution in an unpredictable economy.