Heriatge gets $45 million line of credit thru Wells Fargo...

bidask · February 17, 2011 11:36AM

Actually a senior secured line of credit.....as noted in Coin World.

I thought they had enough internal cash flow to run their business and buy collections.

Maybe something brewing?

CaptHenway · February 17, 2011 11:47AM

One of our members must be getting ready to consign.........

ArizonaJack · February 17, 2011 11:47AM

Actually, I told them if they wanted to buy my collection outright, thy would need to pay in cash

Coinosaurus · February 17, 2011 11:52AM

I thought that ad was kind of wierd.........$45M is a lot of dough, but for a company of their size ($1B I think) it sure doesn't seem like much.........

Assuming they make a 5% margin, the $45M would represent their profits for one year.

If an individual announced they got a credit line for one times their annual salary, I would not be that impressed........my credit card practically gives me that much and I didn't even ask for it.

MrEureka · February 17, 2011 12:19PM

I thought that ad was kind of wierd.........$45M is a lot of dough, but for a company of their size ($1B I think) it sure doesn't seem like much.........

I seem to remember them running similar ads before, so there's no reason to think anything is "brewing" this time.

Anyway, $45M can be very useful, even to a company that has been doing $1B.

BAJJERFAN · February 17, 2011 12:27PM

Maybe the Langbord Saints are up for sale.

coindeuce · February 17, 2011 1:05PM

Maybe Bob Simpson is getting ready to cash out of coins?

Tiny · February 17, 2011 1:52PM

Sounds funny to me that a billion dollar company would want or need a
45 million dollar line of credit.

But on second thought, maybe with the economy in the toilet people are
starting to sell off things to be able to live and Heritage is filling their coffers
to buy stuff. Maybe I should go talk to Wells Fargo and see about a line myself.

DaveE · February 17, 2011 2:11PM

Isn't this old news? They announced having this line a year ago after they first got it.

I'm surprised that with the monies they make from interest financing, they do not have or need a bigger line.

sinin1 · February 17, 2011 2:16PM

I don't think it is odd at all - especially if they do any advances on consignments on items that will not be sold in another month and a half and which may take another half month before the winning bidder pays.

Cash flow is KING in their business, and a reserve for writing more checks than cash on hand is always helpful

imagine the stink that would occur if one settlement check bounced for NSF

abitofthisabitofthat · February 17, 2011 9:08PM

This is not at all odd. Is is normal for any large business to have lines of credit, ususally with several banks. It is industry practice for the bank to take out an ad to commemorate the deal - it is referred to as a tombstone ad.

MrEureka · February 17, 2011 11:24PM

I'm surprised that with the monies they make from interest financing, they do not have or need a bigger line.

I wouldn't assume that this is their only line of credit.

PerryHall · February 18, 2011 12:29AM

<< It is industry practice for the bank to take out an ad to commemorate the deal - it is referred to as a tombstone ad. >>

"Tombstone ad" sounds a bit ominous.

BAJJERFAN · February 18, 2011 12:49AM

<< 

<< It is industry practice for the bank to take out an ad to commemorate the deal - it is referred to as a tombstone ad. >>

"Tombstone ad" sounds a bit ominous. >>

You mean like you might end up buried in their coins?

roadrunner · February 18, 2011 1:46AM

There are plenty of companies with $1 BILL in value that have credit lines of a hundred million dollars. If low margin businesses want to grow they need a credit line.

With the price of the metals and commodities in general probably looking to rise into May/June, not a bad time to have extra money around to buy into more deals.

roadrunner

johnny9434 · February 18, 2011 3:50AM

<< Actually, I told them if they wanted to buy my collection outright, thy would need to pay in cash

>>

sure thing and why not

timcoin · February 18, 2011 4:44AM

I think the point they are trying to convey is that they have the money and resources to instantly purchase valuable collections for cash, if necessary.

oreville · February 19, 2011 2:30PM

Yikes!

I forgot to pay my Heritage invoice!

ambro51 · February 19, 2011 10:21PM

well I hope they make their payments on time because if they DONT

Wells Fargo

will be on the phone FOUR TIMES AN HOUR calling them....

Trime · February 19, 2011 10:59PM

This seems like business as usual.
Lines of credit are normal for corporations or individuals with significant assets.

BAJJERFAN · February 19, 2011 11:25PM

<< Yikes!

I forgot to pay my Heritage invoice!

>>

Guess they won't need that LOC then, eh!!

BAJJERFAN · February 19, 2011 11:27PM

<< This seems like business as usual.
Lines of credit are normal for corporations or individuals with significant assets. >>

An LOC is a lot like a condom or a handgun. Better to have it and not need it than to need it and not have it,

ColonelJessup · February 20, 2011 8:08AM

<< I'm surprised that with the monies they make from interest financing, they do not have or need a bigger line. >>

When someone can borrow at prime and loan out at 1% per month, I'm jealous.

The terms marginal utility and opportunity cost come to mind.

Probably a sign of confidence in the way their platform is performing.

Heriatge gets $45 million line of credit thru Wells Fargo...

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