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Earlier quoted context omitted.
> net worth is ~4B net worth is not the same as liquidity
Net worth is the more relevant value for a loan guarantee.
Seems like a pretty scary loop.
I wonder if Softbank demanded this because of what happened at WeWork?
wow! Phrasing! Are we still doing phrasing? Alternate title: CEO personally guarantees company financing "The CEO believes in his struggling company, although it theoretically means he could have an excuse to sell a bunch of Better.com shares or personally declare bankruptcy, this CEO has 5x as much cash and is probably swimming in less debt than most of the middle class."
wow! Phrasing! Are we still doing phrasing? Alternate title: CEO personally guarantees company financing "The CEO believes in his struggling company, although it theoretically means he could have an excuse to sell a bunch of Better.com shares or personally declare bankruptcy, this CEO has 5x as much cash and is probably swimming in less debt than most of the middle class."
I in no way meant the title to be misleading…I included the specific company (Better) because they’ve been in the news recently for multiple rounds of layoffs.
Likewise, this is one of the few times I’ve seen a founder personally guarantee such a big loan for their startup, and it’s more notable considering Better’s business (and valuation) seems to be in shambles.
I'm currently in late stages with Better, and holy crap is this company on fire (not in a good way). I've been using them for 3 months exactly, and on my 5th advisor. An advisor is your sole point of contact for the loan... questions, concerns, documents, everything. They don't tell you when the advisor changes, you just notice by chance the little initial emoji of your advisor changed. Realize this means the previou…
Of course if you have some edge case and tons of questions or issues YMMV and you'd have similiar back and forth. Their call center which seemed to be staffed in the US was always helpful in answering questions or escalating if there are delays in the advisor side.
Earlier quoted context omitted.
> net worth is ~4B net worth is not the same as liquidity
Net worth is the more relevant value for a loan guarantee.
Net worth is an abstraction that's generally useful to reason about outcomes, but it's a leaky abstraction.
Earlier quoted context omitted.
Net worth is the more relevant value for a loan guarantee.
If Better can't itself afford to pay the loan back, bringing the personal guarantee into play, what value will the equity have? Net worth is an abstraction that's generally useful to reason about outcomes, but it's a leaky abstraction.
I'm currently in late stages with Better, and holy crap is this company on fire (not in a good way). I've been using them for 3 months exactly, and on my 5th advisor. An advisor is your sole point of contact for the loan... questions, concerns, documents, everything. They don't tell you when the advisor changes, you just notice by chance the little initial emoji of your advisor changed. Realize this means the previou…
I had no issues using them last year. As a matter of fact there was a whole subindustry of churning your mortgage as interest rates kept falling. Better.com allowed for that because of how seamless everything is and they would price match any rate you got. Of course if you have some edge case and tons of questions or issues YMMV and you'd have similiar back and forth. Their call center which seemed to be staffed in t…
How does better.com make money? what is their business model? The site says they charge zero commissions & lender fees - does this just apply to the loan recipient? maybe it's just commission from the lenders?
Better is a direct lender, not a broker. They make their money from the spread between the rate/points offered to the user and the price they can package and sell the loan for.
I took out a loan from hitatchi a while back, I’ve just today had about an exciting new rebranding they’ve had changing they’re name and how ecstatic I, as a customer, will be about it
Do I care? No. At start I care about monthly payments and how many months it is. Afterwards I care how long is left.
If better come out with better rates than any other provider that’s great, but there’s no value add for this type of product, it’s just how much it costs.