Corporate finance and personal finance aren’t as diverse as you would think. The companies which need some guaranteed loans at some time, or at least a line of credit in case they need a short term personal loan are some of the biggest names out there. The Ford Motor Co. needed guaranteed loans from the government. Ford is getting out of debt in double quick time. Freddie Mac and Fannie Mae need more guaranteed loans just to scrape by.
Lord Mr. Ford you got guaranteed loans
During the worst of the recession, the Ford Motor Co. borrowed $ 23.5 billion to stay afloat and keep Ford from having to file bankruptcy and ask for bailout money. Ford only asked for emergency lines of credit if necessary, and didn’t need a bailout. Ford not asking for bailout funds was maybe the best business decision they’ve made in a while. While Chrysler and General Motors were figuring things out, Ford’s sales went up 22 percent, as outlined by the Wall Street Journal. Sometimes just knowing you are able to borrow can give a boost of confidence; some individuals like knowing they can get a cash until payday if they really need it.
Mortgage giants need more guaranteed loans
Freddie Mac and Fannie Mae need more, nevertheless, in guaranteed loans. According to ABC, Freddie has lost about $ 6 billion for the second quarter of this year alone. The money hemorrhaging firm is asking for an additional $ 1.8 billion from taxpayers. Freddie and Fannie are struggling, and they have until 2012 to get their affairs in order. At that point, Treasury Secretary Geithner won’t write any more checks.
Credit scores affect huge businesses too
Ford can be able to get better loans, as they pay down debt and improve the company’s credit worthiness. Just like paying down a credit card improves your credit worthiness, it works for big companies too.
Additional reading
online.wsj.com/article/SB20001424052748703589404575417491742322262.html
abcnews.go.com/Business/wireStory?id=11356950
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