Parafin Cash Advance screwed my business
Parafin Cash Advance screwed my business. I got the loan from them for a 9 month loan, with bi-weekly payment. Guess what they told me that I have not read terms and conditions. They are withdrawing every week, and according to them that they would withdrew 15% of my gross revenue. I have told me that Amazon takes close to 25% if gross revunue, and I get paid for that sales after two (2) weeks. The are debiting every week, and this week twice a week. In two months of the loan I have already paid them more than 65% of my loan, and I have been over drafted by the bank four times.
Again I got the loan for 9 months, with bi-weekly payment. Now my cash flow has gone down the drain, as they have drained my cash flow.
I have contacted Parafin, and their customer service don't have a real answer. They have told me that some one would contact me via Phone. I have called them up over 9 times, and they have not yet get back to me. Amazon needs to cease doing business with them. I have over drafted 5 times from my bank because of the scam I got placed into.
Parafin needs to realize that if they are taking of 15% of sales, and amazon takes 25% commission, and the cost of goods. Where is my profit >? I am literally getting scammed, and Amazon is helping them But Amazon has the balls to call me their "partner".
It's not poor communication from Amazon or Parafin but killing my business.
Please do not get an MCA from Parafin.
Parafin Cash Advance screwed my business
Parafin Cash Advance screwed my business. I got the loan from them for a 9 month loan, with bi-weekly payment. Guess what they told me that I have not read terms and conditions. They are withdrawing every week, and according to them that they would withdrew 15% of my gross revenue. I have told me that Amazon takes close to 25% if gross revunue, and I get paid for that sales after two (2) weeks. The are debiting every week, and this week twice a week. In two months of the loan I have already paid them more than 65% of my loan, and I have been over drafted by the bank four times.
Again I got the loan for 9 months, with bi-weekly payment. Now my cash flow has gone down the drain, as they have drained my cash flow.
I have contacted Parafin, and their customer service don't have a real answer. They have told me that some one would contact me via Phone. I have called them up over 9 times, and they have not yet get back to me. Amazon needs to cease doing business with them. I have over drafted 5 times from my bank because of the scam I got placed into.
Parafin needs to realize that if they are taking of 15% of sales, and amazon takes 25% commission, and the cost of goods. Where is my profit >? I am literally getting scammed, and Amazon is helping them But Amazon has the balls to call me their "partner".
It's not poor communication from Amazon or Parafin but killing my business.
Please do not get an MCA from Parafin.
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Seller_LVZcgxAgZ2xBv
Does the contract say bi-weekly or weekly? What is the fine print?
Seller_Qbd0RsfZFEZBY
We use Amazon lending and have not seen a Parafin Cash Advance option. Is this Amazon, and Amazon partner or just a third party?
Finance management is an area a business owner must be very wise.
When to borrow, how much, and for what are very important to the success of your business.
I stick to Amazon Lending as the cost is very reasonable. I think right now we have a 70k going that costs like 2500 over a year. We also use Marcus as a LOC but try to keep it at zero as its a touch more expensive. We also have various CCs.
This all enables us to delay expenses and earn.
The horror stories are out there tho. Payoneer is one that gets alot of press. Anything cash advance is bad EXCEPT I have had good luck with Walmarts Marketplace Advance, they were very reasonable.
Seller_VIBYADgmEYg7P
Bi-weekly has two meanings, according to Merriam Webster dictionary.
Biweekly can mean the same thing because of the prefix bi-, which here can mean “occurring every two” or “occurring twice in.” Therefore, biweekly can be “twice in a week” or “every other week.”
It is not a clearly defined word. Perhaps the contract context tells you more?
Seller_A9AaBvcpDrTIQ
Yup! These guys are straight scammers! Even if you do 50% roi you aren’t getting anything back.
Seller_5qltytBx2ZYMz
Agreed, this is an absurd loan, there is no coordination on payout date, payout amount, or any upfront understanding about what is happening. The loan was supposed to be 9 months, I'm 70% paid off in 4. Great, except my Cash Flow has suffered immensely. Never again. Be very careful, I made an enormous mistake taking the Parafin loan.
To any reading this, please avoid at all costs.
Seller_QD2EaZq89yfSW
Yeah similar issue. After my loan is paid off I wont be using them again. They withdrawal basically whatever they want from your account whenever they want. Sometimes once a week, sometimes every two or three weeks. You never get a warning or have any idea how much they will withdrawal. Their math is whatever they make it, certainly not accurate. Will not ever use them again.
Seller_iobipI6xASRkh
Even though they are not accredited, file a complaint with the BBB. They need to be held accountable and with enough complaints, will be investigated.
Seller_8UYHnTIxJNqVK
I also got the Parafin Loan! unfortunately my contract said 15% of my sales weekly. Heres where I screwed up. Shortly after getting the loan my sales jumped up by 100%. It was totally unexpected. So they were taking out the 15% but I wasn't getting my payout yet from amazon. Really bad timing. So as I'm draining my personal bank account to avoid any issues. I felt I was losing more then I was getting at some point. So I made the ultimate decision to pay it off using my personal balance and not make that same mistake EVER again.
Seller_8UYHnTIxJNqVK
So the contract gives you a certain amount of time to pay off the loan. They base it off your current sales flow. However if you are doing well over your previous flow it will still be 15% of your sales and end up paying it off earlier. Thats fine print no one tells you or you don't end up reading (myself included).
Seller_SUBrUFXJ9pHvQ
Sorry you are going through this but thank you for sharing your experience with other sellers.
The math wasn't mathing. As you said, it exasperates the cash flow problem. It's like burning a candle from both sides of the stick
