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I'm a founder and have been getting spammed hard-core lately for small business loans. There are many companies offering 5-6 digit business loans and revolving

by api 7y ago

I'm a founder and have been getting spammed hard-core lately for small business loans. There are many companies offering 5-6 digit business loans and revolving lines of credit to basically anyone who can fog glass, and there are salespeople and spammers pushing them. I'd say I average 2-3 e-mails or cold calls per day. Feels like they're trying to stuff loans down my throat. I've spoken to other founders and small business owners and they say similar. I've also heard anyone who can fog glass can get a car loan. It reminds me a lot of how people were being basically nagged and cajoled into taking out huge mortgages in the early 2000s. There seems to be a lot of demand again for debt mystery meat to make debt sausages.

blakes 7y ago
Same experience here. Constant small business loan offers. Not as many as you, mostly we get mail offers. At least 1-2/week.
- H8crilA 7y ago
  Many people are warning about the growth in corporate credit, even Jerome Powell admits that it's not rosy there. Fully 45% of BBB rated bonds (lowest and largest in investment grade spectrum) should be junk rated today if judged by leverage ratios alone: Morgan Stanley, The Nature of the BBBeast https://www.sec.gov/spotlight/fixed-income-advisory-committee/morgan-stanley-nature-of-the-bbbeast.pdf https://www.sec.gov/spotlight/fixed-income-advisory-committe... And then you have non-systemic but ridiculous things like Brex which issues credit on revenue data alone. Revenue is meaningless, Moviepass had great revenue. And those robocalls you're mentioning. Try a Google search on "revenue based credit" on a mobile phone from the US and read what are the ads saying ...
notyourday 7y ago
Arent these loans based on receivables factoring?
- api 7y ago
  Sure, just like mortgage loans are based on things like credit score and income. I just don't see any sign they're checking much. Reminds me of mortgages in 2003-2007.
QuesnayJr 7y ago
I think this is true. Collateralized Loan Obligations are big business now.

by api 7y ago

blakes 7y ago

Same experience here. Constant small business loan offers. Not as many as you, mostly we get mail offers. At least 1-2/week.

H8crilA 7y ago
Many people are warning about the growth in corporate credit, even Jerome Powell admits that it's not rosy there. Fully 45% of BBB rated bonds (lowest and largest in investment grade spectrum) should be junk rated today if judged by leverage ratios alone: Morgan Stanley, The Nature of the BBBeast https://www.sec.gov/spotlight/fixed-income-advisory-committee/morgan-stanley-nature-of-the-bbbeast.pdf https://www.sec.gov/spotlight/fixed-income-advisory-committe... And then you have non-systemic but ridiculous things like Brex which issues credit on revenue data alone. Revenue is meaningless, Moviepass had great revenue. And those robocalls you're mentioning. Try a Google search on "revenue based credit" on a mobile phone from the US and read what are the ads saying ...

notyourday 7y ago

Arent these loans based on receivables factoring?

api 7y ago
Sure, just like mortgage loans are based on things like credit score and income. I just don't see any sign they're checking much. Reminds me of mortgages in 2003-2007.

QuesnayJr 7y ago

I think this is true. Collateralized Loan Obligations are big business now.