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> The model is promising for a variety of businesses and Groupon has it well executed. Groupon essentially invented payday loans for businesses. The two larges
by dsl 14y ago
> The model is promising for a variety of businesses and Groupon has it well executed.
Groupon essentially invented payday loans for businesses. The two largest payday loan companies in the US at one point had valuations near Groupons too, until the slow moving legal system eventually caught up to them.
Deal hunters will go anywhere there is a deal. Groupon just moved "going out of business" and "lost our warehouse, all inventory must go!" sales to the internet.
- klous 14y agoGroupon didn't invent payday loans. "Merchant Cash Advance" loans have existed for many years where merchants who process credit cards can sell a portion of their future credit receipts for immediate cash and the industry has grown substantially year over year. The industry kind of has a scummy tinge to it, but these are merchants who cannot get capital from traditional sources and want to upgrade their retail location or buy some equipment. (or go on a vacation, the funders truthfully don't really care how they use the money)