Mypillows Finances In Shambles As 1 Million Loan At 409 Interest Rate Exposed

MyPillow CEO Mike Lindell’s Company Embroiled in High-Interest Loan Scandal Amid Financial Struggles

A lawsuit has exposed MyPillow’s cash-strapped status, revealing that the company was duped into borrowing $1.6 million at an astonishing 409% annual interest rate from corporate payday lender Cobalt Funding Solutions. This move is seen as the latest sign of financial distress for the far-right pillow salesman, who has been struggling to stay afloat despite years of controversy and lawsuits.

The lawsuit filed by MyPillow claims that Cobalt and its partner Streamline Advance engaged in racketeering by offering a high-interest merchant cash advance – essentially a payday loan for businesses. The agreement was allegedly stacked against MyPillow, a company desperate for funds quickly, and risked ruining the business.

According to the lawsuit, Cobalt and Streamline took advantage of MyPillow’s financial struggles, which have been well-documented in recent years. In 2022, MyPillow borrowed $10 million, only to be dumped by lawyers due to unpaid legal bills. Earlier this year, Lindell himself admitted to NBC News that he was broke, down to his house and truck.

The use of merchant cash advances, typically used by struggling businesses with no other options, is a stark indication of the severity of MyPillow’s financial situation. The latest loan is at least the third case filed in recent months involving MyPillow and merchant cash advances, following similar cases against Lifetime Funding and Shine Capital Group.

Lindell has been embroiled in several controversies, including his claims that the 2020 election was stolen from Donald Trump. He owes over $5 million to a man who won his “Prove Mike Wrong” contest by showing that his supposed evidence didn’t actually prove anything. The latest loan scandal adds another layer of complexity to Lindell’s already checkered past.

As MyPillow continues to navigate this financial and legal quagmire, it remains to be seen how the company will recover from its current cash-strapped status. With interest rates as high as 409%, the burden on MyPillow is clear – can they find a way out of this debt-ridden nightmare?