Prime plus one, apr, and other gibberish

Yesterday was a big day for the business side of things in the life of Punkster.

We went to the bank. we transferred all our accounts out of California, where I used to live, back to good old new york city, where I used to live too and live again. as steven, the kind man at bank of america helped us out I couldn't stop giggling.

what is your address?
Brooklyn

what is your phone number?
l.a.

where would you like to have your new bank card sent?
well, it depends. . .when will it be there. how about Pittsburgh

what is your income?
yea, uh . .. none.

To all these aloof and strange answers I had to say, look I swear we aren't doing anything shady or illegal, we are just making baby clothes. promise.

We discussed getting extra money. Its time, there comes a time in all great small businesses when you are spending more than you are making. and its scary as anything. some companies tackle this step in the beginning. They get an idea they invest in it, they get backers, people who risk because they believe in it. and they owe more money than they will make in the next five years. That's scary.

Some companies, like us, have been entirely self sufficient since we started. We took one friendly family loan and made money from the beginning. We have grown "organically" slowly and easily until this point. But now the production sizes are going up, the inventory in the warehouse is increasing. We are adding a new line to our brand. And all these things are sucking the money right out of our marrow. But in a good way. . . . I think. . ..

So Steven, the bank guy, gave us the scoop. a "line of credit" is better than a credit card. A credit card should be used for temporary short term investments. Small things. At least this is what I think he said. . .my business partner was involved in listening better than I did. So. . .a line of credit was what we should go for.

We have been debating these issues for months, whats the best form of borrowing or if we even want to do it. Every great company has debt. Thats what we are told. but the thing is, my brain is in civilian world, telling me that debt is a bad bad thing. That you want to be only in the clear. So this whole debt world is scary. But necessary.

Then of course there are investors, but donald trump, the madman, himself told us, (a story for another day) dont give your company away. Keep it all as long as possible. Take loans and give interest, but don't give a percentage. We are still trying to listen to that.

So we said, ok let's try for a line of credit. Steven said we could ask for up to 100,000 dollars and they would counter offer if it was too high.

Let's go for gold I said! and he filled it out. My partner and I got nervous, laughing as we told him our stats, the numbers, the non creative, the numbers that don't really represent the hype or the potential of Punkster. Every number he asked us we looked at each other and laughed. A giggle, a nervous giggle, an it will be alright giggle.

So, I asked, when will we know what they say.

He said, we have a decision for you right now.

AHHH! no joke, Ashleigh and I both screamed on the spot in the bank. I asked if we could leave and come back. Maybe go for a walk, take a breather. I was scared of their decision, thinking they knew what we were worth better than we did.

He smiled and said, congratulations. You have been approved for a line of credit.

And then he told us how much.

We laughed again. a lot. a lot.

And we took it.

So far, so good.
Leanne

punkster. rock the wee world.
www.niceshirtbaby.com

Comments

[Greg]

So, how much was it?