4 ms·

50k? Serious question from someone who's never tried: why not just get a loan? I've only watched one episode (I hated it, it reminded me way too much of black m

50k? Serious question from someone who's never tried: why not just get a loan? I've only watched one episode (I hated it, it reminded me way too much of black mirror's "15 million merits") but the deals they were cutting were... not good. Is it really that hard to get a loan for 50k as a business? Isn't that what small business loans are for?

nacs 6y ago
1) A lot of the people who come on there are 1st time business owners and don't have much experience negotiating with investors 2) The "Sharks"/investors really push the whole "yes I'm taking 30% of your company for $30K but I bring in a ton of value in advice and connections" thing alll the time and most of the time, the people go for it 3) I'm pretty sure the whole pressure of appearing on TV and getting grilled for 6 hours in front of cameras (apparently the 10-20 minutes they show on TV actually takes around 6 hours) and then walking home without any deals feels like a missed opportunity for the business owners so they eventually just give in and end up taking any "deal" the sharks throw out which is almost always terrible
wrsh07 6y ago
If you're on shark tank it's because one of 1) you think the company would benefit from the publicity (even if you don't get an investment) 2) it's a total last resort 3) you want to meet the investors / have your fifteen minutes
downvoteme1 6y ago
Business loans do not happen without a personal guarantee where you have to put your home or other hard assets as a collateral or have a ton of incoming revenue that can be scalped .
- no_identd 6y ago
  Nonsense. A cosigner can also suffice in many cases because it splits the rate payment risks for the bank.
kolinko 6y ago
Loans are way harder to get in Europe, especially for entrepreneurs. So, first of all - it’s virtually impossible for someone to take a $50k loan unless they have a “stable” job. Secondly: $50k in Poland would take 4-5 years to repay for a programmer. I don’t think it’s smart to take that much risk when you’re young.

nacs 6y ago

1) A lot of the people who come on there are 1st time business owners and don't have much experience negotiating with investors 2) The "Sharks"/investors really push the whole "yes I'm taking 30% of your company for $30K but I bring in a ton of value in advice and connections" thing alll the time and most of the time, the people go for it 3) I'm pretty sure the whole pressure of appearing on TV and getting grilled for 6 hours in front of cameras (apparently the 10-20 minutes they show on TV actually takes around 6 hours) and then walking home without any deals feels like a missed opportunity for the business owners so they eventually just give in and end up taking any "deal" the sharks throw out which is almost always terrible

wrsh07 6y ago

If you're on shark tank it's because one of 1) you think the company would benefit from the publicity (even if you don't get an investment) 2) it's a total last resort 3) you want to meet the investors / have your fifteen minutes

downvoteme1 6y ago

Business loans do not happen without a personal guarantee where you have to put your home or other hard assets as a collateral or have a ton of incoming revenue that can be scalped .

no_identd 6y ago
Nonsense. A cosigner can also suffice in many cases because it splits the rate payment risks for the bank.

kolinko 6y ago

Loans are way harder to get in Europe, especially for entrepreneurs. So, first of all - it’s virtually impossible for someone to take a $50k loan unless they have a “stable” job. Secondly: $50k in Poland would take 4-5 years to repay for a programmer. I don’t think it’s smart to take that much risk when you’re young.