Comments on: Thought of the Day: When in doubt borrow $$$ http://gigaom.com/2008/01/30/thought-of-the-day-when-in-doubt-borrow/ Business, Internet, Technology & Strategy Wed, 15 Jul 2009 03:47:08 +0000 http://wordpress.com/ hourly 1 By: Benjamin Kuo’s Blog » Blog Archive » Good and bad reasons for raising venture capital http://gigaom.com/2008/01/30/thought-of-the-day-when-in-doubt-borrow/#comment-874973 Benjamin Kuo’s Blog » Blog Archive » Good and bad reasons for raising venture capital Wed, 13 Feb 2008 21:08:00 +0000 http://foundread.com/?p=479#comment-874973 [...] business model isn’t working, you’re bleeding cash, and you can’t see yourself getting cash flow positive [...] [...] business model isn’t working, you’re bleeding cash, and you can’t see yourself getting cash flow positive [...]

]]> By: Lolno http://gigaom.com/2008/01/30/thought-of-the-day-when-in-doubt-borrow/#comment-874965 Lolno Tue, 05 Feb 2008 20:29:51 +0000 http://foundread.com/?p=479#comment-874965 "At $2,000,000, if your business doesn’t work, the bank is in trouble.” This is false, sad as it sounds, way countries and goverments have made deals with banks is that banks doesn't have ANY of the money they lend, so they cant lose it either, when you take loan, it appears from thin air to you credit card. Yes, i know it sounds crazy but that is the truth. Search a bit about it and you find out that it is so. “At $2,000,000, if your business doesn’t work, the bank is in trouble.”
This is false, sad as it sounds, way countries and goverments have made deals with banks is that banks doesn’t have ANY of the money they lend, so they cant lose it either, when you take loan, it appears from thin air to you credit card. Yes, i know it sounds crazy but that is the truth. Search a bit about it and you find out that it is so.

]]> By: Мысль Дня #1 | Startup Cube - Бизнес-консультирование стартапов http://gigaom.com/2008/01/30/thought-of-the-day-when-in-doubt-borrow/#comment-874966 Мысль Дня #1 | Startup Cube - Бизнес-консультирование стартапов Tue, 05 Feb 2008 00:36:12 +0000 http://foundread.com/?p=479#comment-874966 [...] источник [...] [...] источник [...]

]]> By: Elad http://gigaom.com/2008/01/30/thought-of-the-day-when-in-doubt-borrow/#comment-874967 Elad Sat, 02 Feb 2008 09:28:10 +0000 http://foundread.com/?p=479#comment-874967 Keeping in mind that we're entering the post-bad loan bubble period, good luck locating a bank that would lend a serious amount of capital to a business that's cash-flow negative and has no significant operating history. Most likely, they'll ask for collateral, such as your house. If you're good at persuasion, and have some operating history and good relationship with your bankers, then that collateral may not cover the entire amount of the loan, so yes, your bank will be in trouble if you fail - but so will you... Keeping in mind that we’re entering the post-bad loan bubble period, good luck locating a bank that would lend a serious amount of capital to a business that’s cash-flow negative and has no significant operating history. Most likely, they’ll ask for collateral, such as your house. If you’re good at persuasion, and have some operating history and good relationship with your bankers, then that collateral may not cover the entire amount of the loan, so yes, your bank will be in trouble if you fail – but so will you…

]]> By: Carleen Hawn http://gigaom.com/2008/01/30/thought-of-the-day-when-in-doubt-borrow/#comment-874969 Carleen Hawn Fri, 01 Feb 2008 07:59:28 +0000 http://foundread.com/?p=479#comment-874969 We've had people comment here before -- even VCs : never sell equity when you can get buy taking out a commercial loan or line of credit -- even consider using your credit card to finance your operations if you have a good FICO/credit rating, and can get an interest rate that you KNOW you can manage. Selling equity should be your fundraising method of last resort. We’ve had people comment here before — even VCs : never sell equity when you can get buy taking out a commercial loan or line of credit — even consider using your credit card to finance your operations if you have a good FICO/credit rating, and can get an interest rate that you KNOW you can manage. Selling equity should be your fundraising method of last resort.

]]> By: Carleen Hawn http://gigaom.com/2008/01/30/thought-of-the-day-when-in-doubt-borrow/#comment-874968 Carleen Hawn Fri, 01 Feb 2008 07:58:45 +0000 http://foundread.com/?p=479#comment-874968 We've had people comment here before -- even VCs : never sell equity when you can get buy taking out a commercial loan or line of credit -- even consider using your credit card to finance your operations if you have a good ratiing, and can get an interest rate that you KNOW you can manage. Selling equity should be your fundraising method of last resort. We’ve had people comment here before — even VCs : never sell equity when you can get buy taking out a commercial loan or line of credit — even consider using your credit card to finance your operations if you have a good ratiing, and can get an interest rate that you KNOW you can manage. Selling equity should be your fundraising method of last resort.

]]> By: George Manlangit http://gigaom.com/2008/01/30/thought-of-the-day-when-in-doubt-borrow/#comment-874972 George Manlangit Thu, 31 Jan 2008 21:51:32 +0000 http://foundread.com/?p=479#comment-874972 I will agree to a certain extent. However, there must a sense of financial responsibility. True, the bank is in trouble with $2M, so are the employees that goes with the bank when it goes down. Not to mention the business as well. This is exactly what's happening in the credit industry. There's been a lot of overleveraged investments that are supposed to be safe but went south when the R/E market went down. Sure, the bank is in trouble. So are the employees that closed with the banks. I will agree to a certain extent. However, there must a sense of financial responsibility. True, the bank is in trouble with $2M, so are the employees that goes with the bank when it goes down. Not to mention the business as well. This is exactly what’s happening in the credit industry. There’s been a lot of overleveraged investments that are supposed to be safe but went south when the R/E market went down. Sure, the bank is in trouble. So are the employees that closed with the banks.

]]> By: John Wesley http://gigaom.com/2008/01/30/thought-of-the-day-when-in-doubt-borrow/#comment-874971 John Wesley Thu, 31 Jan 2008 18:08:53 +0000 http://foundread.com/?p=479#comment-874971 Interesting thoughts, and I agree in terms of debt. But would you say the same thing about taking capital from investors? Each time you do that you're giving away a piece of your company to an outside force (and who knows what they will demand). Interesting thoughts, and I agree in terms of debt. But would you say the same thing about taking capital from investors? Each time you do that you’re giving away a piece of your company to an outside force (and who knows what they will demand).

]]> By: Monti http://gigaom.com/2008/01/30/thought-of-the-day-when-in-doubt-borrow/#comment-874970 Monti Thu, 31 Jan 2008 08:03:31 +0000 http://foundread.com/?p=479#comment-874970 LOL! What an awesome quote! “Don’t be stupid. Borrow more. At $20,000 in debt, if your business model doesn’t work, you are in trouble. At $2,000,000, if your business doesn’t work, the bank is in trouble.” LOL!
What an awesome quote!

“Don’t be stupid. Borrow more. At $20,000 in debt, if your business model doesn’t work, you are in trouble. At $2,000,000, if your business doesn’t work, the bank is in trouble.”

]]>