yankee | 02-10-2016 10:05 PM | Re: Paypal has no debt! What most of us do not understand is that Paypal holds a massive Intellectual Property Value. Royalties are pouring in like the flow of the Niagara falls. Also, Paypal current costs are risk managements(yea, us) and maintaining and just now again some marketing. Paypal makes it money from OPM(Other peoples money) and gets a percentage of of all cashflow(our fees)
Also, paypal has chosen to ALWAYS use OPM even though they easily could use its own to NOT ACQUIRE DEBT even at an extremely costly rate. Example is Paypal business advances could bring in HUGE amounts of profit compared to interest earned as they are now but that also inherently is more risky, so they use a bank to fund and just take a percentage.
Paypal also has almost no measurable rate of investments.
Paypal, has kept to there roots and make money from OPM while obtaining nearly no risk or liabilities.
Paypal as a whole has no debt by plan and nature. |