June 28, 2008

Currency trading – This 40% amounts in dollars to $1,080, and if we add this to the $2,700 unpaid balance we get a total note of $3,780.

But this note is divided by five years (60 months) instead of three years under the old plan, and the monthly payment is $63. It is lower than the $65.55 under the old plan even with one-third paid down under the old plan. In order to get sound credits you can offer a plan just a little better than the prevailing plan: 2½% holdback instead of 5%, or 20% down instead of 25%, four years instead of three. In time sales finance, whether on homes, cars or refrigerators, the size of the monthly payment is the most important thing to the purchaser, and the question to answer is, "Does he have the ability to meet this monthly payment?" If he can meet it, if the down payment is adequate to provide security to the investor in case the buyer defaults and if the payments are made faster than the thing financed depreciates in value, the deal is sound, provided of course there is some assurance the purchaser does not flee the state or country so that you can never collect.

Currency trading – This 40% amounts in dollars to $1,080, and if we add this to the $2,700 unpaid balance we get a total note of $3,780.

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