Money For Rent
An Unusual
Approach To Financing
You Seldom
Hear
About!
Money For Rent as a means to help borrowers to acquire
financing is nothing new. In fact since 1924 a select group
of investors has been providing similar monies to banking
institutions so that starting and existing companies can
increase their borrowing base.
In its simplest form, money for rent is a method of
financing where willing investors deposit money into the
borrower's bank, primarily in the form of Certificate of
Deposit (CDs) to help facilitate the financing transaction.
The investors who put up money for rent do so for two
reasons. The first reason is the safety feature of the
transaction. And the second is the quick profits they can
generate from these transactions.
Money for rent are essentially
time deposits.
They are short-term instruments, but long term can be
built into them. Deposits are usually made for one year at a
time. They can be renewed at maturity to a period of five
years or more. Duration can also be less than one year.
Who are the players in this market? How do they do it?
How much do they charge? How do you pay back the loan
advanced under this arrangement? Do you assume
responsibility for the money deposited? These questions and
others need to be answered before getting involved.
And, because the path to the investors who put up the
money for rent and other similar borrowing adventures are
full of landmines, you must exercise extreme caution.
To gain additional insight into this method of financing,
simply click here to get our detailed report.
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