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A comment on Earnest Capital is live. Parent comment

Re:Earnest Capital is live by a13n on Wednesday February 13, 2019 @03:20PM (#19156557)
Hey Tyler, thanks for responding.

Sure, I mean different forms of capital are better in different circumstances. So in which circumstances is the form of capital you're offering better than a 20-30% APR business loan?

Asking as a profitable bootstrapped SaaS founder.

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Re:Earnest Capital is live by tylertringas on Wednesday February 13, 2019 @06:13PM (#19158076)
We are mainly focused on the early stage when a business loan (ie no personal gaurantee) isn't an option. I went the route you described (racking up $50k credit card debt) to launch my SaaS business and it sucked. That said a business loan could be a great option for more mature businesses with solid cash flow (hopefully at much less than 20-30%!)
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Re:Earnest Capital is live by axlemax on Wednesday February 13, 2019 @03:53PM (#19156891)
Two possible answers

1. When the business is too early stage to get a bank loan

2. When the business is highly risky and the founder doesn’t want the debt burden (not sure if Earnest would fund this either)

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