[HN Gopher] Startup Finance for Founders - Part I, Accounting (2...
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Startup Finance for Founders - Part I, Accounting (2016)
Author : sebg
Score : 164 points
Date : 2024-07-25 22:20 UTC (1 days ago)
(HTM) web link (rein.pk)
(TXT) w3m dump (rein.pk)
| Havoc wrote:
| There is literally zero accounting happening in the article but
| seems solid anyway on what it does cover.
|
| One thing I'd suggest doing different - instead of trying to inch
| up credit limits rather have that conversation at same time as
| the investment. ie we're looking for a provider to park 15m but
| we also need a credit line/cards/whatever. The sales team wanting
| the 15m will push to make the line happen internally. It's the
| key moment where you have leverage.
| mcc1ane wrote:
| (2016)
| tickbw wrote:
| SVB failed in March 2023. Are the points in the article
| concerning venture funding still accurate in 2024?
| AliCollins wrote:
| And the link to the Part II, Strategic Finance:
| https://rein.pk/startup-finance-for-founders-part-ii-strateg...
| ckdarby wrote:
| Small note that most credit cards allow you to artificially
| increase the credit card limit by simply contributing the payment
| on a zero balance.
|
| Example, $0 balance, card limit $1k, pay onto the card $10k, card
| limit is now $11k.
|
| $10k of that is really prepaid and $1k is truly credit, but it
| would have solved their problems given they had the cash on hand
| and mostly wanted to avoid declines on their cards due to
| draining the credit limit to $0.
|
| The problem with other forms of payments is they're only usually
| accepted on a contract annual basis and you're now vendor locked
| for the remainder of the contract. You're also up fronting the
| capital to that vendor.
| berelig wrote:
| Note that by doing this most (or maybe all) credit card
| companies will only honour whatever protections and insurances
| they offer on the original portion of the limit. So if you make
| an $11k payment, $10k of that is like handing cash to the
| vendor.
| manishsharan wrote:
| This boggles my brain. Why would you give credit card companies
| extra money to hold for you?
|
| Get an AmEx with the balance you need and use that . Much
| better service and protections. Or apply for a new Business
| Credit card with your bank.
| rco8786 wrote:
| > Why would you give credit card companies extra money to
| hold for you?
|
| "they had the cash on hand and mostly wanted to avoid
| declines on their cards"
| stpn wrote:
| What banks has this worked with for you?
|
| I just tried to do this with chase, capital one, and citi. The
| first two only let you pay up to 10% more than your balance
| (balance, not credit limit) and citi only 7.5% - nowhere near
| 10x your credit limit.
| codetrotter wrote:
| > there are limitations to debit cards (e.g. you can't rent cars)
|
| This sounds pretty specific to the USA. Here in Europe you
| certainly can rent a car with a debit card.
| r0s wrote:
| You certainly can in the US too, they "pre-authorize" some
| token amount to be sure you have the funds and off you go.
| nh2 wrote:
| This did not work for me in the USA and Canada, where the
| pre-authorisation attempt failed with a debit card but worked
| with a credit card (from the same bank) in 3 different places
| when renting cars.
| slackfan wrote:
| Pre-auth amounts over hit over maximum withdrawal limits
| for debit cards. Often times those are furiously low, like
| 300-500 dollars a day. Call your bank and find out.
| codetrotter wrote:
| That's interesting. I suppose having an "old bank" also
| affects things.
|
| For example, some times in other situations my debit card
| also rejects big purchases or new countries or some
| reservations of funds from some new hotel when I check
| in. But because they are pretty modern they also have an
| app that notifies me of the rejection at the same time as
| the terminal is told that it was rejected and so I can go
| in to the app and say this is actually ok and then I try
| again and then it goes through.
|
| Maybe what people need is really this kind of thing like
| what I have with my card and the app.
| jbstack wrote:
| I've traveled fairly extensively around Europe and you do
| indeed need a credit card in the majority of cases. Some rental
| agencies will accept a debit card but it's risky to just turn
| up on the assumption that they will. You can find yourself
| without a car or forced to take up very expensive excess
| insurance. I've personally had this happen to me more than once
| and I now travel with a credit card which I have just for car
| rental purposes.
|
| When you book a rental car through an online comparison site,
| you will almost always see in the small print that bringing a
| credit card with you is one of the requirements.
|
| If you're taking out insurance by default then you may not
| notice that this is an issue because you're effectively paying
| to reduce the excess to PS0 instead of blocking a deposit on a
| credit card for them to charge from in the event that you
| damage the car.
| 1st wrote:
| Finance and accounting are my least favorite aspects of being in
| a startup, yet absolutely crucial. Does anyone have any tips
| helping my brain learn to enjoy these? Loaded question...
| emeril wrote:
| just hire some third party to do this for you, it shouldn't
| cost too much
|
| just ideally find someone who has done this sort of work for
| people like you before
|
| also, consider using ramp.com as your corp card if applicable,
| def best tracking/rewards of all of them
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(page generated 2024-07-26 23:12 UTC)