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The Latest Installment

S.Crow Collateral Corp. Is a Dealer-Principal Which Buys and Re-Sells Capital Assets for Its Own Account

August 3, 2021


            It’s not unusual for adolescents to experience role confusion, as they can be unsure of who they are and where they fit.  They may feel confused about their place in life.  (For more about that, see, among others, https://www.verywellmind.com/identity-versus-confusion-2795735 .)


            S.Crow Collateral Corp. is neither an adolescent nor burdened by role confusion.  We know who we are.  We know what we do.  We know our place in life.


            What we do—our place in life—is to buy and sell capital assets for our own account, for resale in pursuit of our own profit.  Our chosen role is to have our sellers finance us (“carry the paper”) to buy from them on installment contracts, after which we re-sell for cash which we then invest in pursuit of long-term profit.  So, we borrow money at our own risk and liability, and we invest at our own risk and for our own profit, in which our sellers do not share.


            Unlike a brokerage firm which acts as a broker (agent) when it executes orders on behalf of clients, S.Crow Collateral Corp. trades for its own account as a dealer (principal).  Indeed, S.Crow Collateral Corp. has no clients—only counterparties.  S.Crow Collateral Corp. does not advise any counterparty about anything, whether it’s about investments, properties, property management, investment management, investment concentration or diversification, asset risk, tax effects or implications, or whatever else.  For that matter, no counterparty should want us to do so; we’re neither qualified nor inclined to do so, and we enter into transactions for our own benefit and in pursuit of our goals.  We are not a front or conduit for you.


            That’s true about matters besides taxes, but it’s especially true about taxes.  S.Crow Collateral Corp. is never involved in how a counterparty reports the transaction for tax purposes.  We don’t instruct or guide a counterparty in the counterparty’s tax reporting.  Our counterparties rely on their own advisers, whose job it is to help the counterparty through the transaction process and the reporting of it thereafter.


            So, you may well ask, why should a prospective seller of a capital asset consider a transaction with S.Crow Collateral Corp.?  Well, let’s mention some reasons which the seller’s advisers may point out, such as these:  To reduce the seller’s out-of-pocket debt-service cost, to improve the seller’s balance sheet more than a cash sale would, to facilitate estate planning more than a cash sale would, to facilitate longer-term investments more readily than a cash sale would, and to arrange for a long-term income stream that a cash sale would not in itself accomplish.  Again, though, those considerations and any others are for a seller’s advisers to discuss with the seller.


            If you are wanting advice or someone to be your agent or conduit, look elsewhere.  S.Crow Collateral Corp. isn’t confused about its role, and now you needn’t be confused about our role, either.—Stan Crow

Stanley Crow, our Editor

The Latest Installment addresses situations, questions and issues which are brought to us in the course of the consideration, negotiation or execution of transactions. We don't use the real names of parties to transactions, and we may edit the statement of the question to try to tell the story better. Please feel free to comment, or to take issue, or to raise your own question or situation. If you do the latter, please do not relate any confidential information.

The Latest Installment blog is edited by Stanley D. Crow, who is president of S.Crow Collateral Corp.

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