Small Business Discussion

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  • formed0

    No loans here, but I have a line of credit for my business that I use. CC's are paid off in full every month.

    Best new discovery is a self-directed 401k. You can actually lend yourself 50% of what is in the 401k, up to $50k. You determine the interest rate (you are paying yourself the interest rate) and the only other requirement is that it's paid back in 5 years. So, technically, I am taking the first loan in 15 years. It's really great, wish I had known about it ages ago.

    You can also buy real estate with it, commodities, etc.

    • HHmmmmmm...... i wonder if we have similar thing in canada.....pango
    • Worth asking. I hired a company to set it up for me, it's a book of paper work. Regular brokerages won't support them.formed
    • @pango, we can only borrow from our rrsps to purchase a home for the first time.Gnash
    • ya i knew about that.... too bad it's only housing...pango
    • ...and hockey sticksGnash
    • I believe you can pull from your RRSP but you pay the tax (HST or GST - I'm not sure) on the amount - since it then becomes taxable income... I think!Centigrade
    • ^ that's true. but you'd never want to do that. you're paying 40% off the top (if that's your tax bracket). not worth it unless you're desperateGnash
    • ^ you pay income tax, not sales taxGnash
  • Miguex0

    I have no idea what a capitol loan is either.
    Sounds like something shady politicians get in congress to "persuade" their opinion on natural disasters that need be kept hidden from the public by oil companies.

    Am I close? lol

    • money must be used to purchase capital assets. Capital assets are usually tangible items that depreciate over time.Gnash
    • i.e.. buying a printing press is a capital expense, whereas buying ink is not (ink is a consumable)Gnash
  • Hayoth0

    So how much are you borrowing?

    How much is your interest?

    • She said there is no interest. Flat fee.ETM
    • Then how it it a loan? The processing fees?Hayoth
    • According to pay pal you pay a fixed fee on the loan amount. https://www.paypal.c…Hayoth
    • So that acts as interest rate. In some cases it's 25% of the loan amount depending on repaymentHayoth
  • pango0

    4th location? What's your product?
    I thought you sell paintings... O_O

    • Shit. This should have gone to the note...pango
    • I buy chic-fil-a sandwiches on Saturday and sell them off the interstate on Sundaybjladams
    • you should start selling them in canada. there are some demand and no supplies.pango
  • bjladams0

    biz partner and i started out 7 yrs ago with a couple hundred dollars between us and i have no idea how we've survived but we're opening up our 4th location at the moment and getting paperwork together for #5 later this year. i'm not sure i have any real advise... seems most things come down to the right combination of stubbornness and luck.

    • 4 locations in 7 years sounds huge man, congratsMiguex
    • wow congrats on all that. Sounds amazing!shellie
  • BK0

    What's your business?

  • shellie

    A lot of us run small businesses and I was thinking it might be nice to have a running thread of useful info, much like the useful thread or the wordpress discussion, but specifically for small business useful things and tips. Some of the older small business threads are ancient .


    I was inspired to start this thread because every time I talk to someone about the working capitol loans I get through paypal, they usually have no idea what I'm talking about. I do a lot of merchandise and sales for my boyfriend who is a musician, so we sell a lot of soft goods, cds and vinyl online. We also run a subscription style fan club that gets new merchandise every month. So, we process a lot of credit card payments through Paypal. I also happen to push all my invoices for interactive work through there as well. Do any of you use Paypal to process sales for your personal business?

    I just got approved for a huge working capitol loan and I'm so stoked rn. They offer working capitol loans for between $100-175 flat rate fee (no interest) against future sales at a rate of your choosing. I choose 30% to pay the loans off fast. But this morning, I got approved for the biggest loan I've ever gotten from them, after doing 6-7 loans in the last few years. They base how big your loan can be on how much $ you push through paypal in the last 12 months before you applied for the loan.

    I've been looking around to see if there were any other services like this I can take advantage of to fund more stock without big interest fees. Under $200 for a few thousand dollars that you can pay off as fast or as slow as you want is pretty good imo. If a particular merchandise style doesn't sell really fast, there's no consequences as long as I sell it all eventually.