Ann: LVT secures $10million debt facility for strategic growth, page-76

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Chipfiend

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02/10/21

17:59

Post #: 56522563
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Originally posted by WoosterBrewster: ↑

The amount of crap you read on this forum from people is unbelievable.

Here are a few of the doosies I’ve read on here just to debunk.

- Banks won’t even work with them -

Banks will rarely fund SaaS companies. Case in point Canva. They had a funding round this year at a 6 Bil valuation and are profitable yet they had venture capital funding.

- The interest rate represents the level of risk in LiveTiles-

Ofcourse there’s risk involved. There’s risk in any investment. See my point re Canva above. Do you really think as an SaaS company they are walking into ANZ for a 2.6% business loan? They too need to opt for venture capital. The rate is standard for venture capitalists. They are not a bank with a diversified portfolio of investments and thousands of customers paying interest/fees, hence their rate is going to be higher than bank.

- So much for not needing a credit raise

You and I have no idea what they intend to use the loan for. If they are using it to target new opportunities and growth then I welcome it. I sincerely doubt it’s to keep the businesses daily operations going, they’re about to go cash flow positive.

- I’ve been here for ages and nothing is happening

LiveTiles has grown their business exceptionally during Covid, unfortunately the greater market is still burnt from Lvt due to prior management decisions. I believe they’ve turned a corner.

I said I was not going to respond any further but the level of amateur rhetoric going on around my company I’m proudly invested in was just too hard to resist jumping in. These guys aren’t running a suburban accounting firm that they have the business bank manager over for morning tea and biscuits at the kitchen table to discuss their loan rate for godsakes. You’re either on board and believe in the growth direction or you’re not…then sell.

Expand

The geniuses that expect a 2-3% interest rate must not realise that those rates are for businesses where the owners/directors put their house on the line as collateral. Of course, the bank will provide a loan to them, given that if it goes pear-shaped, they'll just take the guarantors personal assets.

LVT Price at posting: 13.0¢ Sentiment: Buy Disclosure: Held
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