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Traditionally that's how banks operate, they settle up and the end of each business day. I think it's called reconciliation? Maybe that's only in the UK, I forget now. But that's only possible between peers who do X amount of business in a common timeframe.

Remember that different debts have different interest rates and maturity times. Also, remember, not everyone wants to pay off their debt. It's a burden for the individual but for a business debt can be a good thing - you get a known amount of capital that you can invest with a predictable repayment schedule at a known rate of interest. Have a look in this thread, I wrote up a short explanation of why some months back: https://news.ycombinator.com/item?id=8624979




http://gendal.me/2013/11/24/a-simple-explanation-of-how-mone...

I have a feeling you're remembering this article that was on HN a while back (at least I did, reading your comment).




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