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02-24-2021, 11:59 AM #1
- Join Date
- Jun 2017
- Posts
- 2,049
This isnt true.
One deal I remember off the top of my head, kept taking short term 1.49's over and over and over. Always paid back. And it worked for her.
Was a car dealer, that got a significant discount for paying cash for cars.
It worked for her. The high cost was justified, and she made it work.
There are scenarios where a 30 day 1.50 will work. And where the short term high cost is justified, with the associated risk.
In alot of scenarios renewing a 1st or 2nd, makes less sense than stacking, paying a factor on remaining balances already factored. Renewals shoot that remaining balance up higher than a 1.50 (1.36 x 2 = 1.72 on 50% of the Advance? - add that with the original 1.36 on 50% of the advance - and where do you end up? lets say someone renews 3 times, it gets even worse. You can argue that stacking makes more sense in some cases.
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02-24-2021, 12:10 PM #2
Yes there is always a one off where anything can make sense, but for the large majority of businesses these loans in no way help and just make a bad situation worse. To speak in absolutes was wrong there is always the off cases but for the vast majority of businesses, these deals make bad situations worse.
John Celifarco
Managing Partner
Horizon Funding Group
3423 Ave S
Brooklyn, NY 11234
T: (347) 773-3990 | F: (718) 795-1990
Linkedin: Profile
Email: john@horizonfundinggroup.com
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