4 ms·
Sacrificing future income in exchange for current liquidity is the very essence of a loan. The only difference is that the return from a loan is fixed, whereas
by zacharyvoase 15y ago
Sacrificing future income in exchange for current liquidity is the very essence of a loan. The only difference is that the return from a loan is fixed, whereas a proportion of future income represents a variable rate-of-return, with more risk (when assessed through conventional means) but more opportunity for reward.