PCM: Pacific Media: New funding secures future

I am not too worried about the high price they are paying for the loans, as even if you were charging 50% interest per annum, it would be no good unless you were going to get your money. The lenders must feel it is a safe bet otherwise they would not do it.

I would not lend someone money at 500% interest rate if i thought they were going bust.

Having said that, it is higher risk than normal and whilst the high rate reflects that, PCM management must feel there will be more than enough profit in time to cover it.