cashflow problem

[BeerHat]

plum card ftw, no preset spending limit.

 

[bb_wolfe]

Hey guys.

I've posted here some time ago about being strapped for cash, however I've been finding ways to make money. The only problem is that it's low ROI income... less than 50% most of the time. More around 20% ROI.

The problem I'm facing right now is lack of cashflow, as I can get rather large volume, but ROI is shit.

I've tried raising my CC limits, but they denied, because I already have loads of debt. I'm going to try to get new CC's.

So... where can I get cash? I feel like I'm leaving money on the table, because I have to bid now only on days where I know I'll be most profitable and I can spend upwards of $500 a day, if I keep expanding it can easily be $1000-1500 a day... a huge cashflow problem.

Consider that most new businesses don't profit for at least 6-24 months, and then the profit is only marginal. If you're getting 50%, just keep grinding it out. The last thing you want to do is pay interest on earnings by putting a few grand on CCards.

Remember, the money's not in the bank until the money's in the bank.

 

[WayneDog]

plum card ftw, no preset spending limit.

From reading his original post I highly doubt he is getting a Plum card approved right now so that's not at option.

 

[Priority_Mail90]

If you need more cash, set up a corporation and go look for a line of credit. If that doesnt work, find a partner. Go find someone you work with or know and present them with a business plan, go 50-50 on everything and use have them buy in to the business by matching the funds you have outstanding with your lead networks.

Just ideas. If you're making money, really making money, then it shouldn't be difficult to find money.

This is completely wrong. When you setup a corporation, it'll cost you a little cash ( which it sounds like you don't have ), in addition, any credit you try to get in the companies name will be approved based on your credit/social security/name (ie. if you personally have a problem getting more credit now, your company will get jack shit). [Note: If you have excellent credit then do go corporate, you indeed can get a much larger line of credit than you otherwise would]

You'll be hard pressed to find a bank that doesn't pierce the corporate veil and require the SSN and personal guarantee of the officers of the corporation. (sucks, true though).

And if you find someone dumb enough to partner with you based on your track record (at least on WF), please let us know how you did it.

BTW, not trying to give you a hard time, drives me nuts when people set all these false hope expectations.

Your best option is weekly wires and slowly scale, as you continue to generate revenue, you'll eventually have enough to go big. If you really are earning 20% weekly ROI, even with a spend of only $2000 per week compounding, you'll have $8.5k in 8 weeks ! If you do this, on weekly wires, you now will have 8k per week to invest .... and in another 8 weeks from that point, you'll hit 34k, assuming you maintain that ROI and continue to reinvest the returns weekly.

My guess is, this won't happen, fluctuations in traffic and conversions could easily have you losing your ass if you aren't careful one week (bringing invest able amount down significantly). In addition to that, some traffic sources/categories simply have a hard upper limit on what you'll be able to spend to get traffic, without increasing your bids and adversely affecting your margins).

Basically, don't rush head first into a brick wall, you can still scale over a short period of time without risking losing your ass in the process.

 

[smaxor]

Corp won't work in theis situation. You have to secure anything for the first few years with your personal social and name.

Weeklies. If you're network isn't flexible find a new one

 

[Cool1g]

right now it takes about 2 years after incorporation to get $50K credit lines just off of your business credit rating.

 

[hunmik]

I don't mean to hijack this thread, but this credit issue can quickly become a problem for me when I move back to the US. Last time when I lived there (in 2002), it was pretty much impossible for me to get ANY form of credit or loan - simply because I was a foreign national. It didn't matter that I had good credit history in Norway prior, or that I was making $100k+ a year at Microsoft. Wherever I went, I was always told "sorry, but you have no credit history"

I don't have cashflow problems right now, as my Adwords account is in good standing and I get charged by Google monthly after each spending period from my Norwegian bank account. I want to move on to an Amex card though once I get settled in the US, but I have a feeling it's gonna be all the same shit over again.

Has anyone else here had trouble getting credit cards or loans simply because they had no credit history? If so - what did you do to obtain it? I imagine it is even harder now that the loan market in the US is undergoing really hard times and lenders are tighter than ever.

When I moved to the US I had the same problem. They kept denying my application. I finally got a crappy Bank of America Visa card. Payed it off every month. I was told that this is how you build up credit history. It seem to have worked.

Actually after I got my first card approved I started receiving a ridiculous amount of credit card junk mail.