Re:Starting an Internet Service Provider
by wongarsu on Tuesday February 21, 2017 @09:17AM
(#13695593)
If you can guarantee a rate of return, getting money from any bank sounds easy. And if take rate is 60%, then those that take the offer have to pay 100%/60%=166% of what they would have payed with a 100% take rate. Of course that requires estimating the take rate, but that's an everyday buisiness problem.
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Re:Starting an Internet Service Provider
by shambolic on Tuesday February 21, 2017 @09:38AM
(#13695764)
> If you can guarantee a rate of return, getting money from any bank sounds easy.
Sadly this isn't true. Banks lend you money if you have collateral.
> And if take rate is 60%, then those that take the offer have to pay 100%/60%=166% of what they would have payed with a 100% take rate.
That only works if the customers are willing to pay 166%. The shit really hits the fan if you get the take rate wrong and your costs exceed what your customers have agreed to pay.