1) What was the biggest surprise for you in the reading? In other words, what did you read that stood out the most as different from your expectations?
What surprised me the most was social lending. I'm aware of sites like Kickstarter, which are less about lending, and more about funding a product, in the hope that it gets made. Supporters may get a specialized version of the product or get it early, but the idea is to get the product made. Social lending is in the same vein, except with a cash return, as opposed to just seeing a product you support getting made.
2) Identify at least one part of the reading that was confusing to you.
Factoring was somewhat confusing to me because I can't see how that would be a good deal in most situations.
3) If you were able to ask two questions to the author, what would you ask? Why?
I would ask why a business would use factoring in any non-emergency situation. It seems like it's sacrificing longer term earnings for short term cash. It almost sound like a payday loan for businesses.
Also on the question of factoring, what kind of discounts are given on the sold receivables? Would this be the equivalent to the 2-6% over bank interest rate of equity financing or more since it's a one time payment?
4) Was there anything you think the author was wrong about? Where do you disagree with what she or he said? How?
I couldn't find anything in the chapter that I disagreed with as it was very straight forward in its communication of information.
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