Need Financial Advice!

[klemkewins]

I know I'm new here, so feel free to yell at me if this isn't worth it's own thread or is in the wrong spot....

My business hit a bit of a rough patch financially (although, I guess everyone has lately?). I’m getting a little worried with the beginning of the new year coming, and I’m not sure how we’re going to make ends meet.

I’m trying to weigh my options for raising more capital. I’d thought about business loans from my bank, but I’m worried that might bite me in the ass if business is slow. I came across this company that has a program for small businesses. They take a portion of credit card receipts as payment rather than a fixed rate, and it’s looking pretty attractive to me.

Does this sound like a good deal to anyone else? Thanks for any help, I really appreciate it.

[roban]

No it doesn't sound like a good deal to me. Those companies are nothing new and hit their hay day in the 60's and 70's supplying capital to small to medium size manufacturing companies like the garment industries, supplying capital against billed sales. For a small business do you really want someone in your bank account eeking out a percentage of your possible dwindling sales?

[The Old Sarge]

When times are tough, you make due with less. When times are good, you lay something aside for when the times are tough. Going into debt should always be the last resort.

[FiveTone]

We took one these of these loans at an extremely exorbitant rate and we regret it now. You're better off getting a loan from your local mobster! But seriously, I wouldn't do it.