/cdn.vox-cdn.com/uploads/chorus_asset/file/19727382/1161682965.jpg.jpg)
Patreon will now give creators cash advances on their subscription money
Cash advances hit the digital age.
www.theverge.com
It's a payday loan
Silicon Valley getting into finance is fucking scary
-
Ever wanted an RSS feed of all your favorite gaming news sites? Go check out our new Gaming Headlines feed! Read more about it here.
-
We have made minor adjustments to how the search bar works on ResetEra. You can read about the changes here.
The Verge: Patreon will now give creators cash advances on their subscription money
- Thread starter Slayven
- Start date
www.theverge.com
Silicon Valley getting into finance is fucking scary
There's dozens of micro loan/online only banking/pay day apps. Why wouldn't they be, if they fit the FDIC rules for lending etc?
This doesn't sound that bad? Not like people are forced to take it. It seems like it's more for if you need some quick cash to make a big investment, not a way to make up for low income.
The question for me has rarely been "are payday loans legal?" compared to "why do we have an economy that relies on cash advance lenders in the first place?"
OP
OP
That is exactly why it is a bad idea. What kinda terms are there that they will loan against something so fickle as patreon money?
Silicon Valley getting into anything usually ends in it going straight to shit.
Adding liquidity to creators is not a bad idea though. What is a bad idea is unregulated loan shark operations but there is no indication Patreon is violating the (many, seriously) state and federal laws on the matters right now.
True but this doesn't seem to be the case here. The example The Verge's cites sounds more like a small businesses loan than a payday loan.
Anywhere where there is cash opportunity cost, this will exist. We should be careful to understand that it was never the fact that cash advances existed, it was that they have brutal terms and tend to be pushed in a predatory way. If these were like 1% loans nobody would care.
Every fucking company just wants to be a damned lender. Uber. Apple. Opera. Patreon.
When the world ends, it'll just be 10 billion people in the business of lending each other money.
When the world ends, it'll just be 10 billion people in the business of lending each other money.
Weekend Era: Im gonna be video game world champion should I take billion dollar cash advance because people gonna love me
The future will be more like the company *owns you* and the debt is trying to buy off your're own freedom, like Outer Worlds but much more depressing.
On the one hand this could be helpful for some patreon users, say if they're working on a big project and need extra cash to get it done in time, but let's face it the rates will surely be terrible and predatory given how much they know about their users
People will be wearing advertising for their creditors to pay them off.