Tariffs
Small Businesses Turn to Lending Startups as Tariff Costs Mount
Demand for short-term loans is spiking among companies that import merchandise from China.
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.