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Re: GoSpeedGo post# 6919

Tuesday, 01/10/2012 1:40:17 PM

Tuesday, January 10, 2012 1:40:17 PM

Post# of 49064
LOL! That was the first thing I thought when I saw "asset" too. But aside from the pun, what it actually means is that they aren't limited to issuing loans based on the credit-worthiness of the borrower, like traditional banks are. They only issue loans based on the street-value of the assets that the borrowers can put up as collateral. Since these are high risk loans, they charge appropriate interest and fees. If the borrower can make good on payment, everybody wins (especially CFGX), if not the borrower forfeits the assets and CFGX stil wins. Thats how CFGX ended up with the St. Louis goldmine in Nevada as their asset. You can see how given the current tight credit markets this is a powerful business plan.