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From: cafe@cbnewse.att.com (richard.dib)
Newsgroups: comp.sys.next
Subject: Re: Bogus Financing
Message-ID: <1991Feb11.152535.6919@cbnewse.att.com>
Date: 11 Feb 91 15:25:35 GMT
References: <4065@orbit.cts.com> <1991Feb10.050226.16434@macc.wisc.edu>
Distribution: usa
Organization: AT&T Bell Laboratories
Lines: 52

In article <1991Feb10.050226.16434@macc.wisc.edu>, anderson@macc.wisc.edu (Jess Anderson) writes:
> 
> In article <4065@orbit.cts.com> reichard@pnet51.orb.mn.org
> (Kevin Reichard) writes:
> 
> >anderson@dogie.macc.wisc.edu (Jess Anderson) writes:
> 
> [re whether NeXT should be in the banking business]
> 
> >>Our credit union will finance computer purchases by faculty,
> >>students, and staff.  I think other institutions of higher
> >>learning have similar arrangements.  I think NeXT has its
> >>hands full enough without setting up a financing arm at this
> >>point.
> 
> >The UW Credit Union's interest rate two years ago was 16
> >percent, while the credit union I used (CUNA) was 14
> >percent. A 16 percent interest rate ain't that good a deal,
> >Jess--on the educational end, IBM's new financing rate is
> >under 10 percent, while Apple's old financing rate was
> >around 8.
> 
> And how do IBM's and Apple's gross sales compare to
> NeXT's?  Banking is a tough business, one that needs lots
> of liquidity.
> 

Does that REALY Matters?  My father is in the Jewelry bussiness and
I believe that his bussiness is a LOT SMALLER that NeXTs.  You can
go there and get credit at a LOW interest (6%)!!  And we are not broke!
We are actually making MORE MONEY! Anyway Apple does not have his own 
bank or does it?

> If NeXT decided to become a bank, on top of all their other
> problems, they'd need another giant influx of cash to
> capitalize the venture, and they'd need a way to write off
> loans that turned into bad debt.  That would mean higher
> computer prices.

C'MON NeXt does not have to finance the computers they sell.
They can get a bank that is willing to finance their computers at
a special rate.  That's what we do at our bussiness.  You can even 
have a credit card with the name of your store without owning a bank!

I think that what Apple did a few years ago (their low finance rate)
helped a lot of students to get a computers.  That makes the computer
even more atractive to buy and after all, students will be the next 
profesionals in own society.  Isn't it a good idea to get as big a piece
of that market?

Richard Dib
AT&T Bell Laboratories