Taking a Hard Look at Revenue-Based Loans
eComFuel
00:00
You Know You're Not Getting the APR Right?
The interest rate is Significantly higher than then what you probably are estimating going into this if you don't do the math. Some situations where borrowing at 44% makes sense like maybe the one you outlined was super interesting about the timing on the sea freight and not having the free cash flow That might be one of those situations where it makes sense to borrow 44% Because you might come out ahead, right? The problem though is that these are actually 44% Loans being marketed and sold to entrepreneurs who think they are 9% loans So they are using them in situations where a 9% loan would be appropriate But a 44% loan would definitely not be appropriate.
Transcript
Play full episode
