A lot of individuals and businesses need guaranteed loans

The functions of personal finance and high corporate finance are different, but believe it or not, the two aren’t entirely dissimilar. Some of the biggest companies need guaranteed loans, or a line of credit or short term personal loan. Even Ford Motor Co got guaranteed payday loans a few years ago. Ford is in debt relief mode. Meanwhile, Freddie Mac and Fannie Mae need more guaranteed loans to stay afloat.

Ford gets guaranteed loans

To keep from needing bailout cash and filing for bankruptcy, Ford Motor Company took out $ 23.5 billion in guaranteed loans from the government. 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. As Chrysler and GM tried to figure things out, according to the Wall Street Journal, Ford saw a 22 percent jump in sales. Sometimes just knowing you have the access to credit is a confidence boost, if you absolutely need a loan until payday.

More guaranteed loans for Freddie and Fannie

Freddie Mac and Fannie Mae need more in taxpayer funded guaranteed loans. 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. At that point, Treasury Secretary Geithner won’t write any more checks.

Fortune 500 companies have credit scores too

One of the motivations for Ford is the credit rating for the agency improves as they pay back debt. It’s like a person paying down their credit card to improve their credit rating; it works for the biggest corporations too.

Additional reading

online.wsj.com/article/SB20001424052748703589404575417491742322262.html

abcnews.go.com/Business/wireStory?id=11356950