Looking at the TRF loan program I would have several considerations.
First as Randall pointed out it is a personal "unsecured" loan. That
means in a bankruptcy proceeding it would be the last type of debt to be
satisfied. As a business loan it is of a risky nature. The rate of
interest is fixed so it will not adjust as underlying indicators
increase/decrease. Like any other investment the decision to invest
should be made after performing due diligence. One should see a current
set of audited financial statements for TRF before investing. The added
benefit of a disount on parts could make the loan a quick recovery of
capital. If you are doing a full frame off restoration you could
ostensibly recover your investment in savings.
One must compare the loan to other types of investments. Where can you
get 10% fixed interest on amnounts of $5,000.00 or less? Some mutual
funds may have that available but in this market they may be fairly
risky investments also.
--
Best Regards,
Tom
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