Steve Benson

speaker
874 appearances 4 recordings 1 series first heard Mar 2020 last heard Dec 2023

Steve Benson’s voice in public audio — every appearance, attributed to the second.

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They were all about like, you know, 220 here, 250 there.
This is an RBF loan.
Who knows what an RBF loan is?
One person?
Revenue-based finance.
All right.
So what a revenue-based finance loan means, these suck, right?
I shouldn't say that.
They're okay.
But what it basically means is they take a cut of your revenue on a monthly or weekly basis.
the reason they kind of suck is because it's very hard to plan around.
You don't know exactly, you don't know how much you're losing, how much you're going to give up every month.
The good thing about them, there is a good thing about them.
If, if you, if I'd gotten a big revenue based loan right before COVID, that would have been great because then, you know, revenue hits the skids, you pay, you end up paying back less.
So you, you are nicely aligned with them, but if you grow quickly, then this, these loans can become really expensive.
Like on a,
on a percent basis, probably like 25%.
But if, you know, things hit the skids, you could pay 3% interest, right?
Like they just, they want to get their money back someday, right?
So they're, they're the, the, you're better, you're better aligned, I guess, with your lender, but it is, they're annoying in that they're, they, they tend to work out in their favor and be a little more expensive.
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