2 ms·

I think "uncertainty" is a simplistic excuse. Really we as business owners may not need to overstaff, or want to. We may be more efficient from an hr perspectiv

I think "uncertainty" is a simplistic excuse. Really we as business owners may not need to overstaff, or want to. We may be more efficient from an hr perspective than we were 10 or 20 years ago. The interest rate excuse made me think we should guarantee at some level access to capital to all businesses (at risk relative rates of course).

lsc 16y ago
At risk relative rates, you're going to put the government in the position of payday-loan level lenders. Personally, I don't think debit is always a good thing. I mean, if I had access to loans, rather than spending the last five years building up a ramen-profitable business, the mistakes I made would have put me through bankruptcy at least twice. Maybe more, if you charged enough to be profitable. Personally, I think businesses, like individuals, should largely live within their means.
- brianbreslin 16y ago
  If you NEED capital to buy more supplies or get started or expand, you should be able to access it through legitimate means (i.e. not loan sharks). Some businesses REQUIRE capital, just no way around it. Can't build a ramen profitable hardware company without cash to start. I agree that people shouldn't over extend. I was just oversimplifying my argument.
  - lsc 16y ago
    At "risk relitive" rates, you are going to be charging some people payday loan level rates. Most businesses fail. This, I think, is the problem with the "microfinance" industry. Either you are losing money on the loans or you are charging rates that make success much less likely for your customers. I think that if you could scale-down something like ycombinator to handle local businesses, that'd work a lot better. that way the person who needed the capital doesn't end up with crushing debit, and the investor gets a cut only if the business succeeds.

2 ms·

I think "uncertainty" is a simplistic excuse. Really we as business owners may not need to overstaff, or want to. We may be more efficient from an hr perspectiv

by brianbreslin 16y ago

lsc 16y ago
At risk relative rates, you're going to put the government in the position of payday-loan level lenders. Personally, I don't think debit is always a good thing. I mean, if I had access to loans, rather than spending the last five years building up a ramen-profitable business, the mistakes I made would have put me through bankruptcy at least twice. Maybe more, if you charged enough to be profitable. Personally, I think businesses, like individuals, should largely live within their means.
- brianbreslin 16y ago
  If you NEED capital to buy more supplies or get started or expand, you should be able to access it through legitimate means (i.e. not loan sharks). Some businesses REQUIRE capital, just no way around it. Can't build a ramen profitable hardware company without cash to start. I agree that people shouldn't over extend. I was just oversimplifying my argument.
  - lsc 16y ago
    At "risk relitive" rates, you are going to be charging some people payday loan level rates. Most businesses fail. This, I think, is the problem with the "microfinance" industry. Either you are losing money on the loans or you are charging rates that make success much less likely for your customers. I think that if you could scale-down something like ycombinator to handle local businesses, that'd work a lot better. that way the person who needed the capital doesn't end up with crushing debit, and the investor gets a cut only if the business succeeds.