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wistockjock

03/23/05 4:24 PM

#3490 RE: dixiecats #3489

Dix--

Not an uncommon concept. It really is no different than "factoring" receivables. Say you have r'cbles with value of one million. You "sell" them to a third party and get your money now. But, you "discount"the value by, say, 20 or 30% and the third party takes the risk of being stiffed by the customer, not collecting all of what was invoiced, as well as the time value of money while getting the money from those to whom the invoice is due and payable.

If I had a company, needed cash infused fast and had a limitless supply of stock, I would sell tons of paper to someone for 0.0005 or so to get essentially an immediate PayPal payment and then let the financing company risk trying to get 0.0008-9 on the otc market. Likely do it in a heartbeat. Why? Limitless stock and immediate, unsecured (personally and business-wise) cash, as long as the printing press doesn't break down.