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Home > What We Can Do For You > Investing Without the Need for Cash
Investing Without the Need for Cash
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Example Investment TransactionA widget manufacturer has decided that they wish to create an investment portfolio in some start-up enterprises. Widgets cost him $1 each to manufacture and their standard selling price is $10. Working with Ormita, the manufacturer sells 1000 widgets and receives $8,000 in Ormita Credit and $2,000 in cash. Using the $8,000 in Ormita credit, the manufacturer invests in 3 small businesses. The manufacturer’s costs to make the widgets and pay taxes and fees were all covered in the cash received as part of the transaction. Essentially the investment was paid for without the need for any additional cash outlay. |