Borrowing against graded cards

[RedsFan1941]

what could go wrong?

[stlcardsfan]

Originally Posted by RedsFan1941

what could go wrong?

As a banker speaking, plenty! Whoever enters into this endeavor better have an understanding of the Dodd Frank Act. Good luck!

[Leon]

Originally Posted by stlcardsfan

As a banker speaking, plenty! Whoever enters into this endeavor better have an understanding of the Dodd Frank Act. Good luck!

Well, there is that. But my guess is someone (or business) can loan someone money if done the right way. I have to think there are some lawyers and/or financial fiduciary types looking at the business.
I don't do lending or intend to but for tax and accounting purposes I just give everything to my CPA. It's fairly easy.

[Aquarian Sports Cards]

Originally Posted by Leon

Well, there is that. But my guess is someone (or business) can loan someone money if done the right way. I have to think there are some lawyers and/or financial fiduciary types looking at the business.
I don't do lending or intend to but for tax and accounting purposes I just give everything to my CPA. It's fairly easy.

I'm pretty sure I remember reading they went through all the regulatory hurdles for securities.

[autograf]

I used to have L+ loans against company stock to buy more company stock. While it was ultimately a good deal and a vehicle to buy a lot more stock in an era when it was going up significantly faster value-wise than the L+ amount was, it was riskier than probably we all realized. Fortunately, those loans are all gone now. The L+ rates were typically L+1 or less depending on the amount borrowed so much better than L+6 or L+8. When L is steady or declining, it's a much more attractive proposition than when it's rising or fluctuating wildly. Borrowing against cards would have to be a much riskier proposition than against a stock obviously. Guessing that's why the number is so much higher. Good luck........

[Exhibitman]

Mike, insure. It isn't expensive and the application is easy. It buys the peace of mind you want. Plus you get to have your cards. I personally do not want to own a card that I don't feel I can secure properly. But that's what a safe deposit box is for. Insure 'em, keep 'em in a safe deposit box, fugedaboutit.

Other factor to consider: if something 'bad' happens to PWCC and someone seizes their assets, the cards may go with them unless you have some sort of UCC filing in Oregon to establish your ownership of the cards. That was one of the problems that consignors to Mastro had when it went belly up: the cards became potential assets of the entity for bankruptcy purposes even though they were consigned.