Personal finance and high corporate finance are not as diverse as you might think. Some of the biggest corporations need guaranteed loans, or a line of credit or short term personal loan. The Ford Motor Co. needed guaranteed loans from the government. Ford has a severe mind towards getting debt consolidation as quick as possible. Fannie Mae and Freddie Mac need guaranteed loans just to stay above water.
Ford gets guaranteed loans
To keep from needing bailout money and filing for bankruptcy, Ford Motor Company took out $ 23.5 billion in guaranteed loans from the government. During the auto bailout, Ford didn’t need any auto car loans, but merely asked for lines of credit as a contingency. Ford not asking for bailout funds was maybe the best business decision they’ve made in a while. As Chrysler and GM tried to figure things out, according to the Wall Street Journal, Ford saw a 22 percent jump in sales. Sometimes just knowing you have the access to credit is a confidence boost, if you absolutely need a loan until payday.
More guarantees needed for mortgage giants
Freddie Mac and Fannie Mae need more in taxpayer funded guaranteed loans. Freddie, as outlined by ABC, lost $ 6 billion this last quarter already. They’re asking for another $ 1.8 billion. Both firms have until 2012 to get their houses in order. That’s when Treasury Secretary Tim Geithner is not going to cut any more checks.
Credit scores affect huge corporations too
One of the motivations for Ford is that the credit rating for the agency improves as they pay down debt. Just like paying down a credit card improves your credit rating, it works for large corporations too.
Find more information on this subject
online.wsj.com/article/SB20001424052748703589404575417491742322262.html
abcnews.go.com/Business/wireStory?id=11356950
