Total Merchant Resources Update | Shark Tank Season 5
Self-proclaimed ‘mini-sharks’ Jason and Val Pinkhasov have a company that finances small businesses with big dreams and nowhere else to turn. Will their company earn a deal on
Shark Tank Total Merchant Resources Update
- Entrepreneurs: Jason Reddish and Val Pinkhasov
- Business: Alternative financing for small businesses
- Ask: $200,000 in exchange for a 20% stake
- Result: $200,000 in exchange for a 50% stake
- Sharks: Kevin O’Leary
Jason and Val brought their company, Total Merchant Resources to the tank. Like the sharks, the two offer financing for small businesses. Unlike the sharks, they finance small businesses by taking a 20% cut of each credit card transaction.
Borrowers seeking this service may also need a credit card processing service, which Jason and Val also do. When potential borrowers come to them for a merchant cash advance-type service, the two pitch their credit card processing service. Nearly three-fourths of their clients sign on to their processing, so they get additional revenue from that contract, too.
The company continues to take a cut of their clients’ credit card sales until the cash advance is paid off. Ideally, the borrower repays the advance on time, and Total Merchant Resources retains the credit card processing contract, so the client is still generating money for Jason and Val, even after they no longer owe them money.
Val told the sharks that their business grossed $346,000 in the year prior to filming. The pair took home $220,000 in distributions.Lori Greiner was the first shark out, saying she couldn’t get behind the business model. Robert Herjavec expressed doubts that a small business could realistically pay off the debt within a year. He told Jason and Val that it wasn’t the kind of business he wanted to be involved in, so he too was out.
When Jason reminded Robert that they could generate a 400% return in a year or two, Mark Cuban told them that was the trouble with their business. Merchant cash advances are relatively unregulated, and unscrupulous lenders take advantage of vulnerable businesses. Unhappy borrowers will raise red flags to the government, who will eventually step in, make corrections, and add regulations to the alternative financing industry.
Mark told Jason and Val that it would be a liability for him, so he was the next shark to go out. Daymond John was right behind Mark, going out as well. Kevin O’Leary offered $200,000 in exchange for 50% equity, and Jason and Val eventually accepted the deal. What happened next for their company? Keep reading our Total Merchant Resources update to find out!
We have good news to report in our Total Merchant Resources update! While the deal with Kevin never finalized, the company is still successful in 2023. Their estimated valuation is $5 million, and Jason and Val have been featured in business and finance media interviews many times over the past several years. You can learn more about their company on the Total Merchant Resources website.
Would you like to learn about the other companies featured on Season 5 Episode 6? Follow the links below for our other company updates from the episode.
For even more on companies and products, be sure to stop by our Season 5 Products Page!
Andrew Smith is the founder and owner of Shark Tank Recap. He is a longtime Shark Tank fan that has been watching it for years and has seen every episode multiple times. His friends know him as the Shark Tank expert, because he can answer any question about the show! His favorite Shark Tank products are Bertello's pizza oven and Bug Bite Thing!