Taking a loan to expand your web business

[DomainMagnate]

I'm wondering how many people here took a loan to invest in domains or other online ventures?

 

[theinvestor]

All the time

I wouldn't suggest it for newbies though.

 

[DomainMagnate]

All the time

I wouldn't suggest it for newbies though.

Taking bank loans to buy .ca's?

 

[Sonny Banks]

Never taked a loan in all my life and never I will do.

 

[Theo]

Never taked a loan in all my life and never I will do.

If you're married, your life's on a loan

 

[Sonny Banks]

If you're married, your life's on a loan

LOL so true

But I can always sell my wife in some pawn shops

 

[DomainMagnate]

Never taked a loan in all my life and never I will do.

Neither have I, but I'm thinking it might be a good idea now when the rates are low and prices are down.

 

[Gregcyber]

The Domain name.

 

[Sonny Banks]

Take a lone if you want to get Stressed out.

If your plain does not go right your in a world of stress and the need for more funding.
Like Drugs, you become dependent on more borrowed cash.

So true!
I want be free in my life so I deal only with the money I have.

Michael...it's true with some additional money you can grow up your business but remember the money they loan to you are not yours until you pay all rates.
Be careful is my only advice.

 

[Rockefeller]

Take a lone if you want to get Stressed out.

If your plain does not go right your in a world of stress and the need for more funding.
Like Drugs, you become dependent on more borrowed cash.

Well it may help if you knew how to spell l-o-a-n. A small business loan is a great way to get your business started, I have never personally taken a loan from the bank though I have a business line of credit for $50,000 which comes in handy. Just be careful that you do not come dependent on loans or credit cards, that's where you'll get in trouble.

 

[Seraphim]

The crucial question is what will your liquidable equity stake vs debt ratio look like after you've inked your signature. I did this in the past, but only because I bought into a large chunk of instant equity due to a very naive non domainer seller. I would however never take a loan to fund a domain based development project, or something that I would be locked into until some unforeseen high risk payoff came my way.

Aim for a domain with an easy exit. If you can payoff most of the loan just by listing the domain for sale via a quick and easy venue such as GreatDomains.com, Bido, etc., then you should be in a fairly low risk situation. Also consider what you're willing to lose, and make sure you can afford it.

 

[Gerry]

I'm wondering how many people here took a loan to invest in domains or other online ventures?

Revenue from sales/parking go back into the biz.

 

[jasdon11]

LOL so true

But I can always sell my wife in some pawn shops

Pawn or porn?

 

[PRED]

Pawn or porn?

you beat me to it :-#::smilewinkgrin:

 

[Sonny Banks]

Pawn or porn?

LOL both

I can try also with some Arabs if they pay me with camels

 

[Gregcyber]

The Domain name.

 

[DomainMagnate]

Yep I hate debt and loans, but I do believe in taking well thought of and calculated risks in business. Risks can't be totally avoided, unless you do nothing or settle on a very slow growth. But there is no reason why you shouldn't follow a good tested plan with a large profit margin

I checked at my bank and they currently offer loans for about 9% annually. I wonder is that considered good/bad nowdays?

Well it may help if you knew how to spell l-o-a-n. A small business loan is a great way to get your business started, I have never personally taken a loan from the bank though I have a business line of credit for $50,000 which comes in handy. Just be careful that you do not come dependent on loans or credit cards, that's where you'll get in trouble.

John D. used to borrow heavily to expand his business

 

[Gerry]

I checked at my bank and they currently offer loans for about 9% annually. I wonder is that considered good/bad nowdays?

That is not a bad rate for unsecured loans.

You may have to put up some collateral.

This will have to be tangible property/assets.

99.99% of banks are not going to recognize domains as assets.

Hell, some may view them as a burden






:smilewinkgrin:

 

[Gregcyber]

The Domain name.
http://www.kued.org/productions/fire/photos_stories/massacre.html

 

[Sonny Banks]

The old timer was a very mean business man. He was a Killer of the Human Spirit and a baby killer as well. He made miners work in hellish conditions and then booted them to the fields if they wanted better living conditions.

When his workers protested he killed them and their families with machine guns.

A Saint