Financing Questions

[Zac C]

Ok, going to talk like a total newb here.... but i have a question...

What is Financing, and who's to offer it, and why is RED used in the same sentence as financing?:usd:

I met up with Steve Sherrick a few weeks ago, and he tried to explain it.... i nodded my head, but im still thoroughly confused...


please try to explain as though you're talking to a baby.....



Z

 

[Darren Orange]

To buy a RED? Financing like that?

 

[Zac C]

I'm guessing, alot of people are joking around saying when will RED finance?


Lol.....

 

[Kyle Presley]

It's like when you go to buy a car or a house or a property. Anything expensive, really. You make payments until it's paid for. Basically.

When you purchase a new car, a bank gives you a loan to purchase the car. However, the bank will withhold the title on the car until the loan is repaid + interest. The car is used as collateral until the loan is repaid.

 

[Zac C]

It's like when you go to buy a car or a house or a property. Anything expensive, really. You make payments until it's paid for. Basically.

When you purchase a new car, a bank gives you a loan to purchase the car. However, the bank will withhold the title on the car until the loan is repaid + interest. The car is used as collateral until the loan is repaid.

Alright....thats... what i thought....

and people want RED To start doing that idea???:usd:

 

[Yannick Hagman]

I good old swiss philosophy is buying only what you can afford. House of cards tend to fall down at times.

 

[John Hunt]

You can think of financing like buying money. The lender (a bank, a company like Red, a lease company, etc) gives you a large sum of money up front, and you promise to pay them back the sum plus an extra bit, which is the interest.

There's loads of money to be made by lending money and collecting interest, which is why big companies like automakers get involved in financing their products.

Your challenge is to pay as little for your money as possible. Many think that using your own cash to buy (thus paying zero for your money) is safest - and it is. But it's not always possible - you might not have $XX,XXX laying around. But you need a Red camera, dammit, and you have people calling every other day asking for your services and your Red camera.

If you don't have a lot of cash on hand, but you have lots of people who want your services and a Red camera, it might make sense to buy the money - finance your purchase through a leasing company or bank. Or a second mortgage on your property. You'll make your daily rate, work often, and pay back the loan quickly, hopefully sooner than the terms of the loan, thus minimizing the cost of the money but realizing your goal to be a killer Red shooter...

The downside is if you can't make your payments on time, the loan company will take the camera from your hands (or your house, if you use a second mortgage) and sell it to pay off the loan...and you're out all the payments you made up until the reposession. Not to mention your camera. Or your house.

 

[D'Arcy Foley-Dawson]

I good old swiss philosophy is buying only what you can afford. House of cards tend to fall down at times.

yes which is exactly why the global economy is in the toilet. too many lenders lending too much money to too many people so they can buy too much crap they don't need.

do recessions affect the mid-to-bottom end of the film/tv/video production market? last time i lived through a recession i was about nine years old.

i know it won't affect the high end of the market - people will consume just as much if not more films, especially on DVD/BluRay.

 

[Zac C]

Alright... alright alright alright... this all makes sense now... i thought it was what i thought it might have been... lol


Thanks guys, you really are helpful...:biggrin: