Fixed Price Loans for Startups?
Would a company offering transparent, fixed-price loans to startups be interesting? All too often companies are stretched thin to make payroll or to accommodate seasonal boosts in sales, etc. I find existing loan products really difficult to understand and would love to have a simpler way to get access to capital.
Would you use this?
What would you use the money for?
Does Stripe Capital, Clearbanc, etc kill this, or is there room in the market?
#ask-ih
Hi Andrew
I came across a new company today that others may find useful. It's called Small Business Capital, and they seem to offer startup loans. I don't know if this is only for a specific country, but my first thought it's probably for Nord America. I'm sure you can find more information on their website: https://smallbusinesscapital.co/startup-loans
Hope it helps!
Thank you!
Yes.
Building stuff.
Does that site have a FAQ?
Can you elaborate more on the term 'fixed-price loans' ?
sure, just means the interest rate is fixed and there's no additional fees. Often loans come with origination fees and a few other items that can sneak up and make the loan more expensive.
So you want to make the loan more transparent by removing additional costs and earning only on the top of interest rates. It's a good idea I would say but what about the late fees/penalty? Would you not charge it?
yes there would have to be some kind of penalty otherwise there's no incentive to make payments on time.
The fee's im talking about removing are like the ones you pay when you buy a house, there's close to 10k in kind of BS fees when you purchase a home that are hard to find and know beforehand.
The same goes for loans. There's typically origination fees, early termination fees, and a few others that I think are unfair and predatory.
Ah, I got it.