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Hey Tyler, thanks for responding. Sure, I mean different forms of capital are better in different circumstances. So in which circumstances is the form of capit
by a13n 8y ago
Hey Tyler, thanks for responding.
Sure, I mean different forms of capital are better in different circumstances. So in which circumstances is the form of capital you're offering better than a 20-30% APR business loan?
Asking as a profitable bootstrapped SaaS founder.
- axlemax 8y agoTwo possible answers 1. When the business is too early stage to get a bank loan 2. When the business is highly risky and the founder doesn’t want the debt burden (not sure if Earnest would fund this either)
- tylertringas 8y agoWe are mainly focused on the early stage when a business loan (ie no personal gaurantee) isn't an option. I went the route you described (racking up $50k credit card debt) to launch my SaaS business and it sucked. That said a business loan could be a great option for more mature businesses with solid cash flow (hopefully at much less than 20-30%!)