<<If that is the only financing available to them, it is already over>>
I think there are exceptions. YES - it can and very often DOES kill a company but sometimes companies actually pay it off - against big odds - just in time.
FUSZ took on toxic debt - a very small amount in December. I don't know why they did that since they told shareholders they never would. They rationalized by saying it isn't really going to be toxic because the owner himself would pay it off if he had to.
I believe FUSZ is not a scam. So, I think your absolutism is not right. There probably are dozens of cases out of the thousands that have occurred that actually ended up helping the companies to survive.
That's what I have a problem with on this board - the absolutism that seems to be in 100% agreement that NOBODY should ever try to make money in the pennies and that EVERY company that takes on toxic debt is a scam. Anyone with this kind of mindset will lose money. I won't subscribe to it.
That said, I know you guys do know a lot on average and appreciate much of what is said. I take what is helpful and leave the rest on the table.
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