Posted on: 02nd Oct, 2007 11:49 pm
Shall we mortgage the unborn property for loans? Do you know the concept about 'unborn property'?
No idea as such about unborn property.
Hi, sara, I have find a example to explain.
A car manufacture company has had tow product lines and the 3rd will be start-up. then,for gaining more money to help the corporation, the company can mortgage their auto manufactured of 1st year by 3rd product line for a loan to the bank. Of course, It will add the the venture to the bank. But the bank is a smart 'businessman', so , tha bank can make a appraisal for whether they will accept the unborn product (car) of the car company for a mortgage. What about do you think?
A car manufacture company has had tow product lines and the 3rd will be start-up. then,for gaining more money to help the corporation, the company can mortgage their auto manufactured of 1st year by 3rd product line for a loan to the bank. Of course, It will add the the venture to the bank. But the bank is a smart 'businessman', so , tha bank can make a appraisal for whether they will accept the unborn product (car) of the car company for a mortgage. What about do you think?
Ok I got it now, thanks for explaining.
not at all.
BTW, the typo word 'tow' should be 'two'.
BTW, the typo word 'tow' should be 'two'.
I don't know if it would actually be a mortgage. It would be some type of venture capital loan. Or business loan based on the success of the company. This happens all the time when companies launch new products and offerings. It helps reduce the risk of investing up front or helps get the project off the ground. Just because a company is making money in 1 area doesn't mean they can just jump into another.
