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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 busines
by 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 agoAt "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.