Re Spectrum Plus Ltd
Spectrum Plus Ltd. is a made-up company for explaining a concept. Imagine you have a toy car that has many different color buttons on it. Each button represents a different type of money that people owe you.
Now, you have a friend named Tom who wants to borrow some money from you. You agree to lend him $10, and he promises to pay you back next week. So, you press the blue button on your car to represent the $10 you have given to Tom. This blue button is like a special type of money that you only use for loaning your friends.
Next, you have another friend named Emily who also wants to borrow some money. You agree to lend her $15 and press the green button on your car to represent the $15 you have given to Emily. This green button is another special type of money that you only use for loaning your friends.
A few days later, your mom tells you that you need to pay $5 for a toy you bought at the store. But you don't have any regular money left because you have only been using your special loaning money (the blue and green buttons) to lend to your friends.
This is where Spectrum Plus Ltd. comes in. They are a company that can help you out. You give them your car with the blue and green buttons representing the money your friends owe you. In return, Spectrum Plus Ltd gives you regular money that you can use to buy the toy.
Now, Spectrum Plus Ltd has your car with the blue and green buttons representing the money your friends owe you. They can collect the money from your friends and keep it for themselves. The money you owe to them, usually with a little extra, is called interest. It's like a small additional payment for using their help to get regular money.
Eventually, your friends give back the money they owe you to Spectrum Plus Ltd. The company keeps the interest as their profit and gives you back your car with the buttons representing the money your friends returned. So now you have your car back with the blue and green buttons representing the money your friends returned.
That's how Spectrum Plus Ltd works. They take the special loaning money you have and give you regular money in return. They keep the extra money as interest, and you get your loaning money back when your friends pay them back.
Now, you have a friend named Tom who wants to borrow some money from you. You agree to lend him $10, and he promises to pay you back next week. So, you press the blue button on your car to represent the $10 you have given to Tom. This blue button is like a special type of money that you only use for loaning your friends.
Next, you have another friend named Emily who also wants to borrow some money. You agree to lend her $15 and press the green button on your car to represent the $15 you have given to Emily. This green button is another special type of money that you only use for loaning your friends.
A few days later, your mom tells you that you need to pay $5 for a toy you bought at the store. But you don't have any regular money left because you have only been using your special loaning money (the blue and green buttons) to lend to your friends.
This is where Spectrum Plus Ltd. comes in. They are a company that can help you out. You give them your car with the blue and green buttons representing the money your friends owe you. In return, Spectrum Plus Ltd gives you regular money that you can use to buy the toy.
Now, Spectrum Plus Ltd has your car with the blue and green buttons representing the money your friends owe you. They can collect the money from your friends and keep it for themselves. The money you owe to them, usually with a little extra, is called interest. It's like a small additional payment for using their help to get regular money.
Eventually, your friends give back the money they owe you to Spectrum Plus Ltd. The company keeps the interest as their profit and gives you back your car with the buttons representing the money your friends returned. So now you have your car back with the blue and green buttons representing the money your friends returned.
That's how Spectrum Plus Ltd works. They take the special loaning money you have and give you regular money in return. They keep the extra money as interest, and you get your loaning money back when your friends pay them back.