PSA: Don't swipe recklessly for others

[Dan]

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.

[Dan]

Dans dill.

https://forums.dansdeals.com/index.php?topic=65388

[sruly]

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.

[mmgfarb]

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.

[eliteflyer]

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? 

[mendy from lakewood]

https://greaterlakewood.com/credit-card-alert-from-dan-at-dansdeals/

[farmbochur]

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.

[LoLo]

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)

[yosefsv]

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. 

[LoLo]

Is this for the Bucher's info or the fathers?

[yosefsv]

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. 

[S209]

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.

[Dan]

That's a pretty hefty return.

Not for a high risk "investment."

[S209]

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

[Moshe123]

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.