Corporate finance and personal finance aren’t as diverse as you would think. The companies which need some guaranteed loans at a while, or at least a line of credit in case they need a short term personal loan are some of the biggest names out there. Even Ford Motor Co got guaranteed loans a couple of years ago. Ford has a severe mind towards getting debt consolidation as quick as possible. Meanwhile, Freddie Mac and Fannie Mae need more guaranteed loans to stay afloat.
Lord Mr. Ford you got guaranteed loans
The government lent the Ford Motor Company $ 23.5 billion before they needed bailout money and to file bankruptcy. Ford only asked for emergency lines of credit if necessary, and didn’t need a bailout. Not asking for emergency loans from the government was a wise business decision. While Chrysler and General Motors were figuring things out, Ford’s sales went up 22 percent, according to the Wall Street Journal. Sometimes just knowing you can borrow can give a boost of confidence; some individuals like knowing they can get a money loans if they really need it.
Mortgage giants need more guaranteed loans
Meanwhile, Fannie Mae and Freddie Mac need more guaranteed loans from the government in order to stay solvent. Freddie, according to ABC, lost $ 6 billion this last quarter already. They’re asking for another $ 1.8 billion. Freddie and Fannie are struggling, and they have until 2012 to get their affairs in order. That’s when the Treasury Department’s teat will run dry.
Fortune 500 corporations have credit scores too
Ford could be able to get better loans, as they settle debt and improve the company’s credit history. Just like paying off a credit card improves your credit history, it works for big corporations too.
online.wsj.com/article/SB20001424052748703589404575417491742322262.html
abcnews.go.com/Business/wireStory?id=11356950
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