Indeed, we have discussed the idea of bank financing before, although debt financing needn't just come from the banking sector alone.
You'll probably remember this reply to you, then. I thought it summed up the situation quite well.
You may review your post to note how much easier it is to rehash an opinion when it is the opinion itself, only, that one remains focused on expressing. Sometimes taking a breath prior to posting aids the thought process.
Posted by: Fasctrack
In reply to: Jagman who wrote msg# 7630 Date:3/18/2005 11:21:40 AM
Post #of 8336
Asset based loans can certainly secure the loan by assignments of bona fide contract revenue streams and other accounts receivables.
Lender's are not that dumb to allow Borrowers to bonus themselves out loan proceeds. In fact many commercial loan documents preclude the payment of distributions and dividends and even restrict Borrowers from paying additional forms of compensation (i.e. salary increases and bonuses) without the Lender's express written consent. The remedy for a breach of course is to call the loan in default. I don't think Cal would travel down that road.
