I am still not too sure but only this could be the probable idea behind this. This way the holder of the cheques gets immediate liquidity albeit at a discount of maybe 5%-7%.
The Banks give him that money based on the 'security' of the cheque and collect the money in installments as and when the PDC fall due. that way the land lords are benefited and should make no difference to the person who issues the cheques except if it is dishonored the banks backed by govt agencies are going to come at that person like a ton of bricks.
I am still not too sure but only this could be the probable idea behind this. This way the holder of the cheques gets immediate liquidity albeit at a discount of maybe 5%-7%.
The Banks give him that money based on the 'security' of the cheque and collect the money in installments as and when the PDC fall due. that way the land lords are benefited and should make no difference to the person who issues the cheques except if it is dishonored the banks backed by govt agencies are going to come at that person like a ton of bricks.