Capital (as opposed to consumer) credit is the kind of credit that serious investors are issued in order to purchase wealth-producing capital assets such as stocks, bonds, commercial real estate, machinery, copyrights, and patents, etc. It’s a variety of credit that is issued with a relatively low-interest rate that allows the investor to pay off the loan in a relatively predictable amount of time. And once paid off, these wealth-producing capital assets continue paying out dividends, which in turn create a passive, residual income that requires nothing more from their owners than the time and effort required to endorse and…
