Message:

<p>[QUOTE=&quot;medoraman, post: 7519660, member: 26302&quot;]Do you really think a grocery store only has collateral the value of the groceries, and the bank loans them 100% of that value?</p><p><br /></p><p>How this would work would be that to get 10 million in borrowing for inventory, you would have to prove its value is 18 million minimum, you would have to have good credit, and also pledge a few more million of other assets into the loan. Additionally, you have terms with the vendors which helps you manage your cash flow better.</p><p><br /></p><p>I have either done, or been responsible for such borrowings for over 20 years now. I know all about them. No one gives terms on gold, since its fungible. For a borrowing base situation like this for gold, I believe the bank would require excellent credit and half the value in other assets, or normal credit and equal amounts of other assets as borrowed. Way too risky.</p><p><br /></p><p>If anyone is a commercial banker I would be interested in your take.[/QUOTE]</p><p><br /></p>

Your name or email address:

Do you already have an account?

• No, create an account now.
• Yes, my password is:
• Forgot your password?

Stay logged in