New Knifemaker "Stock Market" Idea

You're assuming a knifemaker can get a personal loan to buy a grinder.
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I'm certainly not investing/loaning/whatever money to someone with bad credit!

I don't think a "startup" loan is the suitable financial product for a $1,000 grinder. There are advantages to business loans, but I doubt the hassle is worth is it for such a small thing.

A small personal loan from the bank (or a credit card) would be the simplist and safest method. Payments don't always begin right away. The interest is manageable if payments are made on time. And for such a small amount you wouldn't need collateral.

Guess I'd rather pay $150 for a real knife than $100 for a maybe knife. And I'd rather be in hock to a single, professional, finiancial institution than to ten seperate crazy-impatient knife knuts. :D -You got my knife yet? You got my knife yet? You got my knife yet?

Best Wishes,
Bob
 
I kinda like the idea DaveH and would be open to it. In hindsight I'd have been all doing a stock sale for a Nick Wheeler when he was starting out...........to me, a chance to get something at a discounted cost that is more than likely to appreciate does not sound all that bad.

Cerberus
 
The only thing I see missing from this idea is some form of collateral, both on the side of the maker and the side of the initial buyers.

The obvious choices are the grinder and the money, but how is it managed? It is not collateral unless there is high probablility that it can be reclaimed.

This is the only piece missing that would prevent me from participating on either side.

Chris
 
I can see both sides of the debate. At this point, I'm just starting out, actually with any luck, I should make real progress on my first knife this weekend, so I'm REALLY just starting out :D That said, I'm a good example of someone who could really benefit from, for instance a good belt grinder, so.....

One point I can see, is that someone like me, wouldn't be elligible due to inexperience, probability of giving up, etc(bummer for me, but I think that would be a given just logically) So who decides, and when do you decide a new maker is worth the risk involved?

And I also have to agree with the capital risk arguement, how could you plan on reclaiming the grinder for instance? Trust is good and all, but I have to agree I'd be mighty upset if I put 100 bucks out there and got screwed on it.

Maybe a group of experienced makers vets potential noobs for percieved ability, reliability based on their forum posts?

That being said, it certainly sounds like a potentially great way to give a new maker a leg up, and possibly get a nice knife out of the deal.

Jon
 
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