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Hypothetical
#3
So here's what's really on offer:

We are a member of the local food cooperative. They are seeking to refinance some debt, and would rather raise from members than from the banks.

They will accept loans from $1000, to $100,000.
You select the term of the loan -- from no less than 4 to no more than 7 years.

And you select the interest rate that you'll receive:
-- On loans less than $15,000, you can select a rate of zero up to 3 percent.
-- On loans of $15,000 or above, you can select a rate of zero up to 5 percent.
(I think the idea here is that some portion of the loans will be made at very low rates out of the goodness of the hearts of the members.)

The loans are unsecured and subordinate, but I don't think there is any serious repayment risk. The place has been around a while and the financials are good.

There aren't many "safe" 5 percent options out there, and we do have some cash just sitting in a savings account that might be worth tying up for five years for a pretty sure 5 percent.

Just thinking....
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Messages In This Thread
Hypothetical - by Kerim - 02-12-2014, 09:01 PM
RE: Hypothetical - by Dividend Watcher - 02-12-2014, 10:46 PM
RE: Hypothetical - by Kerim - 02-13-2014, 12:43 PM
RE: Hypothetical - by Dividend Watcher - 02-13-2014, 09:08 PM
RE: Hypothetical - by Markrichard - 02-28-2014, 05:29 AM



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