Money For Rent
An Unusual Approach To Financing You Never Heard About!
Money For Rent as a means to help borrowers to acquire financing is nothing new.
In fact since 1924 a select group of secret investors has been providing similar monies to banking institutions
so that starting and existing companies can increase their borrowing base.
In its simplest form, money for rent is a method of financing where willing investors deposit money into the borrower’s bank,
primarily in the form of Certificates of Deposit (CDs) or other time deposits to facilitate the financing transaction.
The investors who put up money for rent do so for two reasons.
The first reason is the safety feature of the transaction.
The second is the quick profits they can generate from these transactions.
Money for rent are essentially time deposits.
They are short-term instruments, but long term can be built into them.
Deposits are usually made for one year at a time.
They can be renewed at maturity to a period of five years or more. Duration can also be less than one year.
Who are the players in this market?
How do they do it?
How much do they charge?
How do you pay back the loan advanced under this arrangement?
Do you assume responsibility for the money deposited?