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Three reasons to sell your income stream
Factoring Accounts Receivable
Equipment Leasing
Business Notes
Private Mortgage Notes
Pension Plans
Structured Settlements
Life Settlements

Three reasons to sell your income stream

ACCESS

People need or want access to their cash. Sometimes they have a serious need to pay off credit cards, finance long-term medical care, or to settle a divorce. Other times, they simply have a desire to purchase a dream home, take a vacation, buy a new car or boat, finance a wedding, or start a business, for example. In some cases, people want access to their cash just for peace of mind. They no longer want to worry about liquidity issues, collection hassles, or the financial strength of the person who owes the debt.

INTEREST OR YIELD

People will sell their income streams - even for less than face value - because they know that with cash in hand today, they can start earning interest or yield. Interest or yield is what gives us the ability to invest money this year and turn it into an even larger amount of money next year.

INFLATION

Inflation eats away at the future value or buying power of money. You can buy more with a dollar today than you will be able to five, ten, or twenty years from now. People sell their income streams because they realize that over time, the payments they receive will drop in real value.

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FAQ for Factoring Accounts Receivable

Does factoring make good business sense for me?

Yes, if you are a startup or a company experiencing rapid growth. Factoring also makes sense when your cash flow threatens to dry up due to a slow-paying customer and you can't obtain financing through your regular sources.

What are your requirements for factoring an invoice?

There are only two requirements:
1. The work must have been completed, delivered, received and accepted
2. Your customer (who receives the invoice) must be a creditworthy risk

Do you buy our accounts receivable?

Yes, we purchase the financial rights to your invoices. We are not lenders and you are not borrowers.

How does factoring differ from a bank loan?

Factoring …

• Is based only on the accounts receivable
• Provides continuing cash flow without the requirement of periodic payments or interim payoffs
• Gives a business increased access to cash as sales and receivables increase
• Offers a dependable, continuing source of cash without the necessity of making separate loan applications
• Avoids the necessity of obtaining funds from venture capitalists
• Saves the business owner precious time waiting for a loan board to grant or deny his or her loan

Do you bill on your letter head or ours?

You prepare and mail your invoice the way you always have, then send a copy to us along with any other required documents.

How do you make your money?

We get our fee when the invoice is paid.

What happens if my customer never pays you?

If your customer doesn't pay because of a dispute with you, then you have to make good on the dispute or return the funds we advanced.

Do I have to sell future receivables to you?

No, you can sell us one invoice, Walk away and never come back. Or you can come back as often as you like.

Are there any geographical restrictions to your service?

No, we will work with any firm which is invoicing any other creditworthy business or government agency (in the U.S.A)

Can you give me an example of how you work?

You're ready to invoice your customer. The face amount of the invoice is $100 (it could be $100,000). Call us. Indicate your desire to turn the invoice into immediate cash. Fax a copy of the invoice to our office when it's ready to be mailed to your customer. We process the invoice in 24 hours or faster. Then, we immediately advance you 60% - 80% of the invoice amount. When we receive payment of the invoice, we send you the remaining 20% - 40%, less fees. It's that simple!

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FAQ for Business Notes

WILL MY NOTE QUALIFY?

In most cases, if you have:
• Received a reasonable down payment (typically 15 – 20%) at the time of the sale
• A payer with an average credit score
• Collected at least one note payment
• A note in first position
• No more than sixty payments yet to collect
• No balloon payment
• Your payor has a good pay history on the note

Can I sell all or a portion of my note?

We can purchase all or a portion of your business note. Selling a portion of the payments allows you to receive a lump sum of cash up front, then payments when the note reverts back to you. We can even pay cash for a portion of each monthly payment. Many people elect to sell just enough payments to meet their cash needs today and keep some of the future payments as an investment or nest egg.

Why is my note worth more now than ever before?

With favorable interest rates and new buying guidelines funders are able to pay more now than ever before.

How will selling my note affect the payor?

The payor experiences no change in the way the payments are structured. The only change will be to whom and where the payments are mailed.

Will I need to attend the closing?

Not necessarily. We can close the transaction by sending you a closing package by overnight delivery along with easy to follow instructions.

What are some common reasons people sell their notes?

• To pay off debts with a higher interest rate
• To pay unexpected debts such as hospital bills
• To pay for tuition, vacations or new cars
• To settle estates or divorces
• To relieve bookkeeping and collection burdens
• To invest in a business, stocks, real estate or other more profitable venture
• Tired of collecting small monthly payments and want to enjoy the cash now

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FAQ for Private Mortgage Notes

What is a private mortgage note?

This type of note is created with the sale of a personal residence. Depending on the state the property is located, it could be called a mortgage, Deed of Trust or Land Contract.

What type of properties qualify?

• Residential properties
• Houses
• Townhouses
• Condominiums
• 1-4 Family Units

What is an appraisal?

A note appraisal reflects the current market value of your payments similar to what a real estate appraisal provides for real property. Frequently referred to as a "quote", it shows what your future payments are worth in cash dollars today. We recommend you have your note evaluated once a year.

How is the value of a note determined?

The value of a note is affected by the down payment, interest rate, payment amount and term as well as, the buyer's credit rating and payment history. The type, condition and value of the property also impact the value of your note. The time value of money, which makes payments due now more valuable than payments due in 20 to 30 years, also plays a role in the evaluation process. Generally, due to inflation, money in your pocket today is worth more now than later. All of these elements will be taken into consideration in determining the current value of your note.

How do I maintain the value of my note?

Many of the items that affect the value of your note were determined at the time the property was sold. However, keeping good records of the payments received and requiring the buyer to provide annual proof of current taxes and property insurance will help maintain the value of your important asset.

Can I sell all or part of my note?

We can purchase all or part of your remaining payments. Selling part of the payments allows you to receive a lump sum of cash up front, then payments when the note reverts back to you. We can even pay cash for a portion of each monthly payment. Many people elect to sell just enough payments to meet their cash needs today and keep some of the future payments as an investment or nest egg. Always ask for an option that meets your needs.

How do I get started?

To start the process of selling your private mortgage to us, we request copies of the documents that were originated at the time of your sale:
• Note and deed of trust, mortgage or contract
• Closing statement
• Pay history and current balance
• Previous title insurance policy
• Current hazard insurance policy

We will then give you a firm offer, subject to the standard title, appraisal, and buyer's credit review. Once under contract, you will receive your cash as soon as all of the documentation can be obtained. This typically takes as little as 10-15 business days.

Will I need to Attend the Closing?

Not necessarily. We can close the transaction by sending you a closing package by overnight delivery along with easy to follow instructions.

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FAQ for Pension Plans

Why would someone want to sell their pension payments?

The most popular reason for selling pension payments is to consolidate other forms of debt. Other reasons include purchasing a home, paying for educational expenses and covering medical expenses.

How long does the application process take?

That depends. Two to four weeks if you do not need to buy a new life insurance policy. Three to six weeks if a new policy is needed. We try to make the process go as quickly as possible, but you should know that we do not offer an "instant cash" type of service. Please be patient with us, we're going as fast as we can!

What are the minimum and maximum amounts to sell?

There is a minimum amount of $400 per month or $4,800 per year of pension payments that we will buy. There is no maximum amount.

Is selling one's pension legal?

Selling one's pension through the use of a legal document known as an assignment is, in fact, against Federal Law. An assignment would obligate the pension source to pay us directly (instead of the pensioner), a practice Congress outlawed many years ago. The structure of our transactions does not involve the use of assignments, and we are not technically buying the pension itself anyway (assignment or otherwise). It's important to understand that we do not collect our contracted payments directly from the pension source itself. Instead, we are buying a specified number of pension PAYMENTS , but not until AFTER the pensioner receives them. This means our program is VOLUNTARY on the part of the pensioner, resulting in us becoming essentially an unsecured purchaser of those payments.

What types of pension plans are eligible?

In the corporate pension plan category, just about every type of pension plan imaginable... with very few exceptions. Nearly all publicly traded and private firms of any size are allowed. We also approve non-profits, small business, sole proprietorships and self-employment plans. The firm you worked for does not need to have been organized as a corporation. Partnerships, LLC's, Trusts, and Associations are all potentially eligible.

What determines approval vs. denial of applicants?

We screen and process applicants much the same way that a mortgage company would. We do not require perfect credit on the part of the applicant, but you must have DECENT credit. We look for a FICO score above 580, but consider several factors in our decision making process.

What is meant by buying partial pension payments?

Sometimes pensioners need relatively small amounts of funding, and sometimes they need the income from at least part of their normal pension payment. In these cases, it's possible for us to buy only a portion of each payment; allowing the pensioner to keep the remaining amount as it's paid each month. We do this quite often to accommodate individual pensioner's needs.

What amount of interest is charged to the pensioner?

We do not charge any interest. Instead, we buy future pension payments at a discount, at today's (present) value. Instead of expressing our charges as interest (as with loans), you can view our cost of funds as a "discount" rate. This rate varies depending upon a number of factors, including the length of term of the agreement and the general credit worthiness of each individual pensioner applicant.

Can I change my mind after I accept your funding?

Once you sign the agreements and cash our advance payment check, the transaction is considered finalized. The way we get paid back is to simply collect the number of payments we have contracted to receive as they are paid in the future. There is no benefit to the pensioner to pay us back early.

Do I need life insurance to fit into your program?

Yes. Everyone approved for funding must either have an eligible life insurance policy that we can have assigned to us during the term of our agreement, or must be willing and able to purchase such a policy. If you need a new policy, we have developed resources to enable you to obtain one quickly, and at low cost. We do not sell life insurance. The purpose of the life insurance is to repay us if you should die during the term of our agreement. We do not make a profit from a pensioner's death. Any extra payment made to us from the insurance company above what we are owed will be paid to your estate in accordance with your instructions.

Do you withhold income taxes?

Depending upon your circumstances (which we will discuss during our application process) we may need to arrange for income tax withholding from your monthly pension payments. We can make the tax payments on your behalf to the specific tax authorities as the payments become due. If this is necessary, please do not consider this to be an extra cost. You would have owed the taxes anyway!

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FAQ for Structured Settlements

WHY DO PEOPLE SELL THEIR STRUCTURED SETTLEMENTS?

In many cases people sell their structured settlements so they can change their non-interest bearing settlement into an interest bearing investment. They also use the cash to pay unexpected debts such as hospital bills, tuition, vacations, or new cars.

HOW LONG DOES THE PROCESS TAKE?

In most cases the industry-wide standard is a minimum of 90 days. Some companies will tell you they can get your deal processed in weeks. Unfortunately, courts do not operate that quickly. Most people want a set time frame and need the money right away. Some people will try to use that need against you. They will tell you what you want to hear, and then leave you waiting.

WHY IS A COURT ORDER NECESSARY?

Most states have passed a Model Act that requires annuitants to obtain a court order prior to reassigning their payments. In most cases a personal court appearance is not required.

HOW MUCH DO I GET?

There are many variables involved. The financial rating of the insurance company making the payments, the size of your transaction and how far into the future the payments extend, all affect the amount you will receive. Our financing experts will be glad to discuss with you what your needs are and provide you with a quote.

DO I PAY TAXES ON THIS?

No. On June 10, 1999, IRS issued Private Letter Ruling 119273-97, which confirmed that an individual's sale of their structured settlement payments would not create a tax liability to that individual.

WOULD YOU BUY ALL OR PART OF MY FUTURE PAYMENTS?

We can structure your deal in multiple ways. For example, we can buy all remaining payments, a partial number of payments or a percentage of your payments.

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FAQ for Life Settlements

Why would I want to sell my insurance policy?

• No longer need the coverage
• Beneficiaries pass away before you
• A change in business ownership makes the policy unnecessary
• The policy has not performed as expected
• Premium payments have become burdensome
• A change in policy type or coverage is necessary to meet an objective
• Alternative to surrendering or lapsing a policy
• Enjoy a well-deserved vacation

How much will I receive for my policy?

• You will receive more than the cash surrender value but less than the face amount of the insurance policy.

When I sell my policy what are some of the financial benefits?

• You can purchase investments or other insurance products
• Fund long term care
• Make gifts to heirs or charities
• Achieve financial objectives
• Enhance quality of life
• Pay for existing expenses

What is the minimum size policy you will consider?

• We will consider a policy with a face amount of at least $50,000 dollars.

What types of insurance qualify?

• Term
• Universal
• Variable
• Joint Survivorship
• Whole
• Group
• Key Man

What do I need to qualify?

• You must be at least 65 years of age
• The insurance policy is in effect beyond the two year contestable period

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FAQ for Equipment Leasing

Equipment Leasing Helps You:

• Generate Cash Flow!
• Refinance Existing Lease!
• Perfect for Start Ups!
• Flexible Rate Payments!
• Maximize Returns!
• Conserve Your Capital!
• Eliminates Obsolescence!
• Tax Benefits!
• Quick Approvals!
• Conserve Your Credit!

Who can lease?

Any company, association, non-profit organization, or individual that is using the equipment for a business or commercial use.

What are the up-front costs for a lease?

Usually, just the first and last monthly lease payment. Unlike a down payment for a purchase, these payments are smaller and are applied to your total lease payments. In addition, a nominal documentation and filing fee is required for processing the lease documents and filing UCC-1 financing statements required in your state.

What about insurance?

For your protection, it is required that the equipment be insured. You simply instruct your own insurance agent to send a certificate of insurance to us at no additional cost to you.

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