Entrepreneurs can use SBA loans to buy online businesses if they show two years of stable cash flow to prove they can pay back the debt. Alternative options like invoice factoring and Stripe Capital lend against future revenue instead.
No, but I think that's one thing that I see a lot, right? People like, oh, I've got this business, we did, you know, $60K last month, we want to take a loan, right? Um, and so when it comes to SBA loans, for example, the SBA is going to want like a couple years of, of, you know, uh, stable growth and basically showing that you can sort of— that the debt can be supported by the cash flows of the business on its own for a 2-year lookback period, etc., etc., for you to have experience in that space. Um, But I mean, a lot of what I've seen, you know, opportunity-wise is essentially just like a— is basically invoice factoring, right? And it's sort of like, it's the same conceptually the same ideas. Like if you're doing, you know, PO financing is essentially just invoice factoring, right? Sort of like looking at future revenues and lending against those. And I think that that's pretty often going to be— and to be quite honest with you, that's similar when Colin made the comments about Stripe or Shopify Capital loans, right? Like these are essentially just like lookbacks on revenue and lending against future revenues. And so I think that it's a really crappy answer, but like sort of best access to debt is going to be when you actually have the revenue.
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