Author Topic: PSA: Don't swipe recklessly for others  (Read 223490 times)

Offline Dan

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Re: PSA: Don't swipe recklessly for others
« Reply #2535 on: February 25, 2019, 11:39:29 AM »
but no reason to assume buying groups can't get credit from a bank.  that is not why they need you
Can you stop assuming everything I say is talking about buying groups please.
Save your time, I don't answer PM. Post it in the forum and a dedicated DDF'er will get back to you as soon as possible.

Offline Dan

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Save your time, I don't answer PM. Post it in the forum and a dedicated DDF'er will get back to you as soon as possible.

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Re: PSA: Don't swipe recklessly for others
« Reply #2537 on: February 25, 2019, 11:47:52 AM »
but no reason to assume buying groups can't get credit from a bank.  that is not why they need you
Buying group are a grey area and probably not as easy to get loans.
They do need you to bypass limits but just as well they need your cash flow.

Offline mmgfarb

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Re: PSA: Don't swipe recklessly for others
« Reply #2538 on: February 25, 2019, 11:59:08 AM »
Buying group are a grey area and probably not as easy to get loans.
They do need you to bypass limits but just as well they need your cash flow.
Not true, they have millions of dollars of funding from investors, they may run behind during busy times but they're primary purpose for using you is not for your cash flow.
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Offline eliteflyer

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Re: PSA: Don't swipe recklessly for others
« Reply #2539 on: February 25, 2019, 12:05:47 PM »
Pretty compelling, but are you making the case that there are no situations where a company would legitimately need to secure funding somewhere other than the capital or loan markets?
No, just not on an unsecured, subordinated, unlawful and possibly unenforceable basis at about 2% on your credit card. That's equity with no upside or even minority-owner protections.
Why is everyone always saying that if company needs to use credit cards it means they can't get loans or money elsewhere? For some companies, swiping credit cards is a free 30-45 day loan. Their vendor/supplier charges the same amount whether they pay by cash or credit, so why not use a credit card?
Why shouldn't the company get the extra time to pay for the goods and help with cash flow?
Why is the company not using its own credit card? Because the credit card company is unwilling to increase an unsecured line of credit (or worse, provide a line of credit in the first place) to the company (even with the fees and interest rates that credit cards can charge. You really think you're better at underwriting than the credit card company? 

Offline mendy from lakewood

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Offline farmbochur

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Re: PSA: Don't swipe recklessly for others
« Reply #2541 on: February 25, 2019, 12:14:56 PM »
If they can't get credit from a bank, then why is it worth your risk to earn a measly 2%?
Just throwing this out there.
2% per month = 24% annualized.

Then again, only junk rated bonds are priced with such high yields.
Risk is opportunity

Offline LoLo

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Re: PSA: Don't swipe recklessly for others
« Reply #2542 on: February 25, 2019, 12:18:06 PM »
Just throwing this out there.
2% per month = 24% annualized.

Then again, only junk rated bonds are priced with such high yields.
It's really 12%, since usually these people take the full ~57 days to pay. (Day after statement close to due date)

Offline yosefsv

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Re: PSA: Don't swipe recklessly for others
« Reply #2543 on: February 25, 2019, 12:20:47 PM »
There is a heimeshe course in the NY area that offers a free payment option: giving them your personal info and they take the money from the points.
The problem is that people are falling for it.
POIDH
i personally know 2 people that gave their personal info to pay for this course. 

Offline LoLo

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Re: PSA: Don't swipe recklessly for others
« Reply #2544 on: February 25, 2019, 12:22:11 PM »
Is this for the Bucher's info or the fathers?

Offline yosefsv

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Re: PSA: Don't swipe recklessly for others
« Reply #2545 on: February 25, 2019, 12:31:15 PM »
Is this for the Bucher's info or the fathers?
I have no idea. The 2 people that i know, attended his class for Men. 

Offline S209

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Re: PSA: Don't swipe recklessly for others
« Reply #2546 on: February 25, 2019, 12:31:28 PM »
If they can't get credit from a bank, then why is it worth your risk to earn a measly 2%?
It's not a measly 2%, depending on how fast they pay back, it can be anywhere from 12%-24%. That's a pretty hefty return.
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Offline Dan

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Re: PSA: Don't swipe recklessly for others
« Reply #2547 on: February 25, 2019, 12:32:20 PM »
That's a pretty hefty return.
Not for a high risk "investment."
Save your time, I don't answer PM. Post it in the forum and a dedicated DDF'er will get back to you as soon as possible.

Offline S209

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Re: PSA: Don't swipe recklessly for others
« Reply #2548 on: February 25, 2019, 12:42:25 PM »
Not for a high risk "investment."
Yet banks frequently lend at this rate on unsecured, non-recourse lines of credit (translation: credit cards) based on nothing but your credit score and stated income
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Offline Moshe123

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Re: PSA: Don't swipe recklessly for others
« Reply #2549 on: February 25, 2019, 12:43:15 PM »
Yet banks frequently lend at this rate on unsecured, non-recourse lines of credit (translation: credit cards) based on nothing but your credit score and stated income

Because they are very big and can afford to lose it.