And an innovative funding method it is sure beats getting venture capital or selling stock to accredited investors, both of which are very time-consuming. Vulture capitalists would want to run the company or own most of it, while selling stock to the public would take a year or more. This way, they deal only with one entity - the bondholder - and apparently are able to borrow (hypothecate) the bond fairly easily. I wonder how the loans are secured, any financial gurus out there?
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