Covering the float from Ad networks to do arbitrage

Discussion in 'General Business' started by JDDunn9, Oct 2, 2007.

  1. #1
    I have found a great little arbitrage play that pays off really well. The only problem is that the ad network that I get paid from pays net 30, but I have to pay for the advertising up front. I can easily scale the operation up to soak up all of the advertising (about $10,000 in ads a day), but I don't have that kind of money. Any ideas where I could get a short term loan to cover the float? Thanks.
     
    JDDunn9, Oct 2, 2007 IP
  2. dapyx

    dapyx Active Member

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    #2
    First of all are you sure you are going to get paid?
    Why not ask for the money faster, I have people that pay me every 7 days by wire. This way you wont have to invest so much money without seeing something in return.
    Try to contact them and ask to send you the money quicker, and just invest everything you earn each week.
     
    dapyx, Oct 2, 2007 IP
  3. nick-a

    nick-a Active Member

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    #3
    If you're very sure, can't you go to a bank and get a bridging loan?
     
    nick-a, Oct 2, 2007 IP
  4. JDDunn9

    JDDunn9 Peon

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    #4
    I already called the ad network about getting paid weekly, they said no.

    As for the loan, I can't even get a credit card, much less a loan. I don't have a long enough credit history (I guess saving and buying things with cash makes me a bigger risk?).
     
    JDDunn9, Oct 2, 2007 IP
  5. speedster

    speedster Peon

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    #5
    Well you could ask your friends to invest in you if you are positive that you will earn it all back and more. What advertising are you doing that is costing $10k a day?
     
    speedster, Oct 2, 2007 IP
  6. john269

    john269 Notable Member

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    #6
    Why don't you start of small. Invest a little and then once you get your money, invest a percentage of that so that your advertising spending will be bigger this time and keep going in that direction. That is how a majority of us do it anyway. We start small and get bigger as we get more money.
     
    john269, Oct 2, 2007 IP
  7. JDDunn9

    JDDunn9 Peon

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    #7
    I guess I will just have to reinvest when I get my checks. Thanks for the help.
     
    JDDunn9, Oct 2, 2007 IP
  8. richkid

    richkid Well-Known Member

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    #8
    I agree. Start with what you have, and as you make more build from there.
     
    richkid, Oct 2, 2007 IP