The functions of personal finance and high corporate finance are different, but believe it or not, the two are not completely dissimilar. Numerous of the largest companies need guaranteed loans, or lines of credit or short term loans at some point. Even Ford Motor Co got guaranteed payday loans a few years ago. Ford is in debt relief mode. Freddie Mac and Fannie Mae need more guaranteed loans just to scrape by.
Lord Mr. Ford you got guaranteed loans
The government lent the Ford Motor Company $ 23.5 billion before they needed bailout money and to file bankruptcy. Ford didn’t need a bailout, but only asked for lines of credit be set aside just in case. It turned out not asking for emergency loans from the government at that moment panned out. As Chrysler and GM tried to figure things out, as outlined by the Wall Street Journal, Ford saw a 22 percent jump in sales. Sometimes just knowing you can borrow can give a boost of confidence; some individuals like knowing they can get a payroll loans if they really need it.
More guarantees needed for mortgage giants
Meanwhile, Fannie Mae and Freddie Mac need more guaranteed loans from the government in order to stay solvent. Freddie alone lost $ 6 billion over the second quarter this year, according to ABC. The money hemorrhaging firm is asking for one more $ 1.8 billion from taxpayers. The twin mortgage giants are struggling, and both have less than two years to get their affairs in order. That’s when the Treasury Department’s teat will run dry.
Credit scores affect huge businesses too
One of the motivations for Ford is the credit rating for the agency improves as they pay off debt. Just like paying off a credit card improves your credit worthiness, it works for large corporations too.
Find more information on this subject
online.wsj.com/article/SB20001424052748703589404575417491742322262.html
abcnews.go.com/Business/wireStory?id=11356950
