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Tied loans

Discussion in 'Planning Your Business' started by remnant, May 13, 2016.

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  1. remnant

    remnant Member

    I wonder whether there is this concept of tied loans. This involves a client obtaining a loan from a bank or an individual or any other entity for that matter. The loans are then used to finance a project or a purchase from a company or concern related to the lender. For example, if its a project involving growing fruits for export, the loaned would have to supply the fruits to the exporting company related to or run by the lender. Farm implements and inputs are to be sourced from related agrovets. All to the benefit of everybody since its an interest free loan which can be said in stages.

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