A really marvelous example of financial engineering, via email: https://inkind.com/ It's "0%* interest loans for restaurants" and all of the magic is in the asterisk.
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But doesn’t that make it worse? Aren’t you just forfeiting the $100 on every $600 they would have spent anyway? Obviously it’s not presented as such, and it’s not something I’d expect someone without tacit knowledge to spot. I’m not trolling you, this is literally my profession.
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It presumably depends on a lot of factors, including whether the use of the house account increases their frequency of use, ticket size, propensity to bring new people to the restauraunt, etc. I'm agnostic on whether the tradeoffs make sense for individual entrepreneurs.
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Yeah, if they're truly only available at high buyins, and aren't subdividable/transferrable, the risk goes down substantially and the value for the establishment goes up. I'd hope to see them set up such that a bunch of users didn't crater ongoing cash flow though.
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I’m also not trying to hate on Peter’s post. Some of the straight loss to existing business will now be offset with arguably higher spends. My concern is that the businesses that are on the brink are the most likely to use “funding” and also the exact type to be hurt by it.
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