Comments on: Obtaining Capital Based on Assets? http://www.thelinuxlabs.org/asset-based-loan/obtaining-capital-based-on-assets Loans Thu, 02 Sep 2010 23:06:06 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Ed Atun http://www.thelinuxlabs.org/asset-based-loan/obtaining-capital-based-on-assets/comment-page-1#comment-201 Ed Atun Tue, 09 Feb 2010 15:39:59 +0000 http://www.thelinuxlabs.org/asset-based-loan/obtaining-capital-based-on-assets#comment-201 It's possible that a bank would loan you money in this scenario. The problem is that the cost of a bank loan is always higher than the interest paid on the bonds. So your example would be a loser. The borrowed funds have to be invested much better than that. Warren Buffet would use the $10,000 to buy a business that he could sell for $20,000. Then use the first $10,000 to pay off the loan and walk away with the profit.<br><b>References : </b><br> It’s possible that a bank would loan you money in this scenario. The conundrum is that the cost of a bank loan is always higher than the interest paid on the bonds. So your example would be a loser. The borrowed funds have to be invested much better than that. Warren Buffet would use the $10,000 to buy a business that he could sell for $20,000. Then use the first $10,000 to pay off the loan and walk away with the profit.
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]]> By: rackrunner8 http://www.thelinuxlabs.org/asset-based-loan/obtaining-capital-based-on-assets/comment-page-1#comment-200 rackrunner8 Tue, 09 Feb 2010 15:11:59 +0000 http://www.thelinuxlabs.org/asset-based-loan/obtaining-capital-based-on-assets#comment-200 Sure you can do that but you would be loosing money, yes? People used to fix their credit in the mid to late 80's doing this back in the day. Getting secured lines of credit that they pay off rapidly (not faster than 6 months or it won't count) over and over again. Before you know it the secured lines of credit become unsecured and your credit is repaired. But again you are loosing fees and financing and really only gained the improved credit ranking from doing that. So again, you could do that but wouldn't you still loose money?<br><b>References : </b><br> Sure you can do that but you would be loosing money, yes?

People used to fix their credit in the mid to late 80’s doing this back in the day. Getting open lines of credit that they pay off rapidly (not quicker than 6 months or it won’t count) over and over again. Before you know it the open lines of credit become unsecured and your credit is repaired.

But again you are loosing fees and financing and really only gained the improved credit ranking from doing that.

So again, you could do that but wouldn’t you still loose money?
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