December 2005 Archives

In about 85 percent of all business sales, sellers accept a cash down payment and a promissory note to pay the balance in installments. The note is personally guaranteed by the buyer, and it is secured by the business and its assets in case the buyer defaults. Providing owner financing allows sellers to cater to a broader pool of potential buyers.

However, many sellers don't want to be in the lending business and would prefer not to hold business notes. The good news is: they don't have to. If you created a business note to unload your company, you can sell the note to someone else. This way you can get instant cash out of the business, instead of waiting to receive periodic payments in the future. You can use the cash for a variety of purposes, including: capitalizing on other investment opportunities, paying off debts, funding college tuition and making major purchases.

How Selling Business Notes Works

Business notes are purchased at a discount-like all notes sold on the secondary market-to make them attractive to potential buyers. Without a discount, there is no incentive for investors to incur the risk of waiting three to five years or even longer to recoup their money. Historically, more than 90 percent of new business owners fail within the first five years. Therefore, there's considerable risk attached to the purchase of any business note.

You may receive less than the full balance of your note when you sell it. However, the total cash you receive from the down payment and the sale of the note will usually be about the same as you would have received from an all-cash sale of your business. That's because all-cash buyers can insist on a much lower selling price.

The amount of money you'll actually receive for your note depends on a number of factors. But as a general rule, for a full purchase, you can expect to be paid 50 to 80 percent of the balance of the note. More specifically, the amount of cash your note can be sold for will be determined by three general components: the current economic environment, the terms of the note (payment amount, interest rate, length of payback, etc.) and the degree of risk or probability that the note holder will lose his/her money.

Criteria for Purchasing Notes

Certain guidelines must be met in order for a business note to be purchased. Naturally, first-position liens are eligible. Here are some other elements investors like to see:

- The business is in a profitable position, with evidence of operating cash flow.

- The buyer has good credit, which generally means a FICO score of at least 625.

- The buyer put down at least 30 percent of the purchase price in cash, which signifies that he/she is truly committed and able to weather down cycles.

- The principal owners have made a personal guarantee on the note.

- The note has been "seasoned," meaning the buyer has made payments for at least two months. This shows that the buyer is happy with the purchase.

- The note should have a minimum face value of $15,000.00.

Structuring the Sale

There are a number of ways to structure the sale of your business note. You can sell the entire note, or only part of it. The most common way to sell a note is through a "partial purchase," which involves selling only a certain number of the remaining payments on your note.

Note buyers can purchase any number of the remaining payments in a variety of ways. For example, let's say you have a note with a balance of $80,000 payable in 240 monthly installments. If you need just $20,000 now, for whatever reason, the note buyer would calculate how many payments would need to be purchased to provide you with that specific amount of cash. Exactly which payments would be purchased would depend on your personal financial situation. You could sell:

- A certain number of the beginning payments on the note. (The note buyer might purchase the first 60 payments, and then you would receive the final 180 payments.)

- A certain number of the final payments on the note. (The buyer could purchase the final 180 payments, passing the first 60 payments through to you.)

- A certain percentage of each of the remaining 240 payments on the note. Perhaps 50 percent of each of the 240 installment payments could be purchased. (You would receive one half of each of the 240 payments.)

So which option in the above example would be best for you? It would depend on your current financial needs and future concerns. All of the alternatives would provide you with an immediate $20,000 cash payment. However, you might choose the first option if you need $20,000 today and require a future monthly cash flow beginning in five years. You might choose the second scenario if you needed $20,000 now and a monthly payment for the next five years until you start receiving your retirement benefits. Or you might choose the third option if you need $20,000 today and also want/need the monthly 50 percent payment for the next 20 years.

The Purchase Process

To purchase a business note, buyers will need to take an assignment of the security instrument (UCC-1 Financing Statement) and receive an endorsement of the promissory note.) But before getting to that stage, they will do the necessary due diligence and closely examine all aspects of the sales transaction of your business. The note buyers will handle all the paperwork for the purchase, from verifying all aspects of the deal and preparing/having recorded all of the necessary documents to make the change.

The note purchasing process takes an average four weeks to complete. If the sale of your business and the creation of the note was "typical," then you should have your money within four weeks.

Sovereign Funding Group is an experienced, reputable company that offers convenient, no-risk services to help you with the selling of your deferred payments and business financing including business notes.

Short on cash, but need equipment? Consider leasing what you need. Leasing equipment may be a better alternative to buying, depending on your situation and needs.

Today, leasing is common practice in business. Over the past two years, equipment leasing has risen approximately 20 percent, according to recent research by the U.S. Small Business Administration (SBA). And 8 out of 10 U.S. businesses lease all or part of their equipment, reports the Equipment Leasing Association.

Leasing is appropriate for just about any business at any stage of development. For start-up businesses with no revenues, smaller leases those of $100,000 or less may be better managed on the personal credit of the owners if they are willing to make the monthly payments.

Comparing Leasing to Buying When you buy a piece of equipment or vehicle, you usually have to pay for it in full either by using cash or by financing the balance. After you finish paying for it, you own it.

Equipment leasing, on the other hand, is essentially a loan. The lender buys and owns the equipment and then "rents" it to a business at a flat monthly rate for a set number of months. At the end of the lease, the business has several options. It can purchase the equipment for its fair market value (or a fixed or predetermined amount), continue leasing, return it or lease new equipment.

With a lease, you actually only pay for using the equipment. But at the end of the lease period, you could end up owning nothing. So why lease? The answer is simple: By leasing equipment, you leave money in the bank that can be used for other purchases. Since lease payments are usually smaller than regular loan payments, you don't have to pay out as much each month.

However, keep in mind that a lease is not cancelable like a bank loan or other debt. If you need to get out a standard loan you can sell the equipment and pay off the loan, or even refinance it. With a lease, you generally have to pay off the lease in full. So you have to be sure you make the payments when you enter into a lease.

So what kinds of equipment make the most sense for a small business to lease? According to research by the SBA, the most common items leased are office equipment, computers, and trucks and vehicles.

Benefits of Leasing Leasing equipment offers a wide range of benefits, from consistency with expenses to increased cash flow. But perhaps the most significant advantage of leasing is the ability to maintain up-to-date equipment. Leasing allows you to easily and affordably add equipment or upgrade to a complete new piece of machinery to meet future needs. This lets you transfer the risk of being caught with obsolete equipment to the leasing company.

Here are some other benefits of leasing:

- Alternative to financing - Leasing is essentially an alternative to traditional financing and can be great for companies not able to obtain business loans.

- 100-percent "financing" in many cases, leasing requires no down payment. This allows you to "finance" an entire purchase, including software, hardware, consulting, maintenance, freight, installation, and training costs.

- Ease and convenience - Applying for a lease is easy, and lease arrangements can be structured to meet your individual requirements. Equipment leases can range from $ 2,000 to $ 2 million. For smaller amounts, you can complete a brief application and receive a final decision within days—often with no financial reports or tax returns needed. Leases for more than $100,000 generally require detailed financial information from the business, and the leasing company conducts a more thorough credit analysis than it would for a smaller

- Flexibility - Lease terms range from 12 to 60 months, depending on the equipment type. Most leases can be structured so that payments are made with operating rather than capital funds. This can eliminate or reduce capital budget delays. Leased equipment can be purchased later if capital becomes available. Plus, a percentage of the lease payments can be credited toward the purchase of the equipment.

- Fixed, predictable payments - Having fixed lease payments enables you to accurately predict the impact of equipment expenses on your cash flow.

- Conserves working capital - Leasing conserves your working capital by requiring only a minimum initial outlay of cash.

- Tax Advantages - Operating leases are generally treated as a 100 percent, tax-deductible business expense paid from pre-tax earnings instead of after-tax profits.

- Protection against inflation - Lease payments are based on the dollar's current value. And unlike bank lines of credit with fluctuating rates, your payments are fixed regardless of what happens to the market tomorrow, making it easier to budget, forecast and grow.

Working with a Leasing Companies When leasing equipment, keep in mind that the company selling the equipment simply makes a direct referral to a leasing company with which it does business. And, usually, the company selling the equipment works with more than one leasing company. So be sure to get quotes from a number of leasing firms. It's also a good idea to ask for referrals from friends and business associates.

Additionally, make sure you understand with whom you're dealing. Are you talking to a broker the person who simply structures deals, then gets them financed through any of the leasing companies he or she works with. Or are you dealing with a leasing company that is actually putting its own funds on the line?

Brokers can be beneficial because they have valuable insight about the leasing market and can help you find the best leasing solution for your needs. But as when dealing with any type of salesperson, you are responsible for handling the due diligence. Do your own homework to ensure you negotiate the most favorable lease agreement for your company.

David Springer is a consultant for Sovereign Funding Group. Sovereign Funding Group is an experienced, reputable company that offers convenient, no-risk services to help you with the selling of your deferred payments and business financing including equipment leasing.

In September of this year, Reuters reported that up to half of the pension funds in the United States are under-funded. According to the U.S. Pension Guaranty Corp., the potential liabilities arising from such under-fundings amount to a staggering $80 billion this year alone, with over one third of that figure arising from airlines still reeling from the double whammy of a slumping economy and the post 9/11 reduction in travel.

The current situation could result in a highly profitable scenario for the cash flow industry: Pension funds are under-funded. Companies are trying to reduce expenses by offering early retirement. Potential liabilities exceed assets. Investment vehicles that once proved lucrative now are no longer generating adequate returns. In the aforementioned situation, many pension plans have been forced either to discontinue offering lump sum disbursement provisions to their pensioners or to scale back drastically the benefits offered. Though governed under the auspices of the USPGC and the terms of ERISA, the losers are ultimately those pensioners who perhaps would prefer the option of taking a lump sum benefit distribution and managing their own finances. Structured Investments has found a niche and is able to reach these disaffected pensioners.

Sovereign Funding Group's program provides instant cash in exchange for the next eight years of your pension payments.

Most types of pension payments are eligible. This program is available to all U.S. residents.

Use your funds for:

- Debt Consolidation
- Divorce Settlements
- Home Purchase
- Pay Bills
- Investment
- Starting a Business
- Pay for School

ANY legitimate use of funds is acceptable.

For more information contact a Sovereign Funding Group representative at 877-836-4661 or fill out our online application here.

Bank lending has been faced with a new wave of competition in the last decade as a surge of online lending companies and their new benefits have captured the attention of many prospective financial consumers. This has been particularly difficult for banks because of the convenience factor web companies. These companies offer expedient services and often require less paperwork. Banks, on the other hand, tend to be the most formal and often also the most stringent as far as lending procedures go.

There are many reasons that banks attract customers. Often, people already have a relationship with their bank based on their prior banking needs. They feel familiar and comfortable dealing with a name and people they are used to seeing. Banks are also the most traditional form of lending. The parents of today's generation often did not have many choices other than a bank. The internet did not exist, and smaller financial companies were rare. As a result, banks are often the first source that comes to mind with a person needs a loan. Banks often offer some of the lowest interest rates available.

There are many drawbacks to bank lending also, especially for the modern consumer. Where time is one of the most valuable commodities for today's business or individual, banks have the lengthiest lending procedures. They have extensive paperwork and documentation requirements. Additionally, due to the volume of bank lending loan requests they receive compared to relatively few associates, long waiting times are experienced by potential customers. Additionally, customers are limited to the bank's business hours, which can often create a schedule conflict. Web companies, by contrast, are available 24 hours a day.

Sovereign Funding Group is an experienced, reputable company that offers convenient, no-risk services to help you obtain an unsecured loan.

In recent years people who have been involved in personal injury accidents have discovered that they can receive a lawsuit cash advance against the proceeds they ultimately receive from a personal injury accident settlement. For the person who is injured enough from an accident so as to be unable to work and earn a living, a lawsuit cash advance can provide a very timely financial solution to the cash flow problems the person may currently face. Nevertheless it is always wise to know beforehand what a person is getting themselves into before they apply for a lawsuit cash advance.

A lawsuit cash advance is not a loan but a participation in a personal injury legal settlement. If the injured victim who receives the lawsuit cash advance for whatever reason doesn't receive a cash settlement from their case, they owe nothing and the company that provides the lawsuit cash advance receives nothing. This means that, like any underwriter, the provider of the lawsuit cash advance must determine what the likelihood is of ultimately receiving payment for the cash they advance and charge accordingly. Because of the nature of the lawsuit cash advance, normal interest rates will not apply, so the provider will most likely charge more for the lawsuit cash advance than a traditional lender would.

The fees charged for lawsuit cash advances can vary significantly. Typical fees for automotive cases are 3.0% per month and for medical malpractice cases 5.5% per month. Nevertheless it is not uncommon for some companies to charge a low entry fee to get business through the door and then charge additional, hidden fees to the personal injury accident victim.

Many companies say they will provide a lawsuit cash advance within 24-48 hours, but actual application times can vary greatly and are subject to the extent of the documentation required from the personal injury accident victim along with other factors. And it is important to realize that a company that approves an application too quickly may be charging the client through the roof to compensate for their less than stringent underwriting requirements.

The business of providing lawsuit cash advances to personal injury accident victims also has its share of brokers. A person is best off if they can find a company that provides the actual funding for lawsuit cash advances and deal with them directly. Otherwise the fee that a broker charges will be added to the fee the provider of the lawsuit cash advance receives from the personal injury accident victim.

This article was written by Michael Merten of Lawsuit Cash Advance, LLC.

If you've agreed to accept a structured settlement, it's likely that you felt a sense of relief that your financial uncertainties were being resolved, and that you'd have the funds necessary to pay your bills, support your family and go on with your life. When you agreed to the terms of the settlement, hopefully with the help of a financial advisor, you accepted a series of financial payments that made sense for you at that time.

Perhaps you'd suffered personal injury in an auto or other accident, you were awarded damages in a product liability case, or you were the victim of medical malpractice or were even the plaintiff in a wrongful death suit. You agreed to a periodic (usually monthly) payment, maybe in the form of a lifetime income stream, that seemed to be the answer to paying your ongoing living expenses and perhaps your medical costs. You made the best decisions you could at the time, with the information you had – based upon how life was then, and what you expected for the future.

But life seldom works out as we expect. Maybe you're on the road to recovery from the accident or other event for which you received the settlement, and want to move and buy a house, get married, go to school, or buy a business. Maybe medical bills or high interest debt is an undue burden on you that you need to resolve now. Or, if your family has grown, and your children no longer need for you to provide for their education or other expenses, you may want to spend more of the money you have coming to you now, instead of later.

What can you do to match your finances - specifically your structured settlement - with the life you now have or want to have? You should always consult an attorney or a financial advisor, but here's a basic overview of your rights and options in assigning your structured settlement:

Settlements are funded by single premium annuities, issued by insurance companies. Instead of paying you a lump sum amount, the party found responsible for injury or damages to you has paid a one-time lump sum to an insurance company, which has, in turn, invested it. The insurance company has projected the interest rate or securities dividends they will receive on the lump sum, and based upon the length of time and number of payments you chose or were offered for the structured settlement, they calculated the periodic payment amount you're now receiving.

So who owns what? The insurance company owns the annuity, and you, as the beneficiary, are entitled to an income stream, or the series of periodic payments. Because you don't own the underlying asset, the annuity, you therefore can't sell the annuity contract to another party to receive your money. However, under federal and state law you can, with court approval, sell all or a portion of the payments you are entitled to receive in the future. In doing so, you can receive a lump sum cash payout now.

What are your options? As an annuitant, or the beneficiary of the structured settlement annuity, you are, in most instances, able to assign to a third party the payments you are entitled to receive in the future. Some Structured Settlement Agreements state that payments cannot be assigned, and your legal counsel will advise you of options and alternatives if yours is written with such a clause. Fortunately, state laws and recent case law have rendered contracts written with such provisions unenforceable, although other regulations may apply.

How can you determine today's lump sum value of your structured settlement payments? This depends, in part, upon the amount of each payment and when it is due. The payment amount and schedule will be outlined in your Structured Settlement Agreement. It is also affected by the financial strength of the issuer of your annuity, because the better the financial position of the issuer, the more likely it is that the purchaser of your cash stream will be paid. The current financial climate, as well as interest rates will also affect your cash-out amount. Your financing company will explain these calculations and assumptions to you.

What steps do you need to take?

- First, you really need to take a hard look at whether receiving your funds now will truly be best for you and your family. This is a big financial step, not to be taken lightly. That said, your circumstances may have changed sufficiently so that a lump sum or partial payment in the form of a lump sum makes sense, and is better for your family's current and future lifestyle and financial stability.

- Next, contact a reliable financing company that purchases structured settlement income streams. They can guide you through the process and help you consider alternatives, such as the sale of a portion of your structured settlement income stream, if this best meets your needs.

- The financing company will assist you by hiring an attorney experienced in structured settlement assignments. The attorney will explain to the court your desire to change your settlement, and any changes in your life that have caused you to make this decision. Because the attorney will be petitioning for judicial approval, he will need to understand your current finances, obligations and desires.

- Having all your documentation and agreements, and furnishing them promptly to your advisors and potential funding sources is key to receiving a cash payout in the shortest possible time. Because court approval is required, the time from the initiation of the request to the final approval is typically 45-90 days. So, just as with other large financial decisions, such as obtaining a mortgage or refinancing, it's in your best interest to begin the process with a little time to spare, before you feel a time crunch. You deserve an equitable deal, as quickly as is possible, not just the deal you can make in the very least amount of time.

- What can you expect now? Once you have chosen a finance company and attorney, the courts will put you on the docket and hear your petition for receiving your funds in a lump sum. They'll want details of the future payments due you, the proposed amount of the lump sum distribution, and any costs you will incur as a result of restructuring your settlement. Their basis for granting you an approval is satisfying themselves that the assignment of your payments to another party and receipt of current cash will be in your best interest and in the best interests of any dependents you may have.

- Once you've agreed upon a lump sum amount with your finance company, and obtained court approval, you'll receive a wire transfer or a cashier's check for your lump sum amount. You'll now have the cash you need right when you need it most.

Sovereign Funding Group is an experienced, reputable company that offers convenient, no-risk services to help you with the selling of your deferred payments, including structured settlements.

As we head into the last month of 2005, Marie B. Ray's words, "We have only this moment, sparkling like a star in our hand and melting like a snowflake," ring true for me. Although here in the desert we seldom have snow, on a clear winter night we have stars enough to make up for it. When I think back to all the truly wonderful moments, I realize how full this year and my life is.

Since, like so many others, I spend a great deal of my time at work, I want that time to be well spent and fulfilling. I like a certain amount of variety to keep things interesting while relying on some degree of predictability to keep an even keel. Lawsuit funding has given me both to the nth degree!

When I look back to a few short years ago, nobody knew what lawsuit funding was. There were no national funding sources advertising these services. Then this niche became a blip on the radar screen. Within a couple of years, it became better known as more people became curious about it. In the past year or two, the popularity of lawsuit financing has exploded with many new funding sources appearing out of nowhere.

With additional information becoming available, more and more consultants started adding this tool to their cash flow tool kit, with many making lawsuit funding their primary focus. As this small slice of the cash flow industry grows, we are now seeing specialization within the field. Although the primary focus is still the personal injury case, there are now sources that are advancing funds for clients involved in divorces and other unusual funding situations.

The direction that I am most enthusiastic about is the commercial side of this business. Admittedly, since my initial training over 11 years ago was in factoring, which I expanded into other forms of business financing, I have a keen interest in all aspects of business. This definitely includes the lawsuit funding side such as breach of contract, patent infringement, and law practice funding.

Here is a quick overview of what is happening on this side of lawsuit funding.

Advances on Cases

We are able to get advances for attorneys based on potential future settlements just as we are in plaintiff funding. The difference is that the attorney will have a number of cases, giving us the opportunity to get them greater working capital.

Case Cost Financing

Case cost financing offers a little bit of a twist because there will be no out of pocket cost to the law firm and no obligation on the part of either the attorney or the plaintiff if the case is lost. This acts almost like an insurance policy.

Attorney "Factoring" for Settled PI Cases

When there is a settlement agreement already in place, attorney factoring can be used. The check will be coming some time in the future. It could be in two weeks or six months. However, the attorney needs money NOW! Just as with any other growing business, a quick infusion of cash may be just what the law firm needs for this "cash crunch."

Traditional Factoring

Although we often overlook this option, factoring for law firms that bill by the hour to creditworthy business customers is also available.

Line of Credit

Lines of credit to law firms are designed to make money available to a firm so it can use the money, pay it off, then use it again. These programs are customized to fit the individual needs of the firm, often in conjunction with an established bank line.

Because the funding sources in this field are as creative as they are, I expect we will see new niches within this niche developing in the near future. Stay tuned!

Written by Richard Shapiro. Richard Shapiro is the owner of CondorFunding.com

Source: The American Cash Flow Journal

Most consultants understand or will soon understand that the private mortgage market is constantly changing. Investors come and go, interest rates rise and fall, sellers' attitudes toward seller financing fluctuate, etc. These market changes can catch a consultant by surprise and perhaps hurt his income or even put him out of business. Many consultants have diversified their private mortgage business with alternate cash flows such as factoring, business notes, etc. Another group of consultants has diversified by getting involved with loan originations. The purpose of this article is to show you why you should add loans to your offered services, when you should do it, and how you can eventually become a branch office of Financial Resources, Inc., should you desire to.

Most consultants do not enter into the cash flow business as their first career. Instead, they come from all walks of life with many different levels of business experience. I have talked to many consultants who have extensive real estate-oriented experience that has served them well in their cash flow business. Likewise, I have talked to many consultants who have had little or no business experience who are struggling with the cash flow business. Financial Resources, Inc. has been involved with ACFA since 1994. We were recently honored with an award for being Exhibitors at the Cash Flow conventions for the last 10 years. Additionally, I have been writing for the Journal since 1997. I mention this to show that Financial Resources, Inc. is 100 percent committed to working with all consultants no matter what their experience level is.

I am assuming that when many consultants are initially presented with the concept of the private mortgage market, they are taught and they understand that the business is a niche in the grand scheme of the American marketplace. However, I have noticed an interesting phenomenon that occurs in many consultants once they have completed their training and become active in brokering private mortgages. They forget they are working a niche!

The private mortgage industry estimates show that the total amount of owner-financed private mortgages created annually in the United States are measured in the several billion dollar range. Contrast this to the amount of loan originations done annually in the United States that are typically measured in trillions of dollars, and you can see why loan originations are the mainstream. I still advocate working the niche of private mortgages, but I want to encourage more consultants to think about the loan origination market as a means of diversifying.

Now is the time to consider adding loan originations to your offered services and move your business to the next level. If you haven't done so already, it would be a great time to read the italicized section of this article. It explains how you can venture into the residential loan origination business without having a license.

We have found that sooner or later all cash flow professionals will be asked if they can make someone a loan to buy a house. Traditionally, consultants have been trained to say "no" to such a question. We at Financial Resources, Inc. want to teach consultants to say "yes." Financial Resources, Inc. is a full service mortgage company founded in 1989. The headquarters is in New Hampshire, and there are branch offices in Oklahoma and many other states.

The typical cash flow professional does not hold a mortgage consultant license and therefore cannot market or solicit for loans. However, sometimes people will respond to an ad that you placed for another purpose. They might assume that you do make loans. Occasionally you might even be in a conversation with a friend, relative, or business acquaintance who might ask you if you could get them a mortgage. We want consultants then to say, "I cannot make you a loan, but I work closely with a company that can," or "We do not make loans; however, I can refer you to a company that can." By making such a statement, to our knowledge you will not be in violation of any state mortgage brokering rules.

In all states except California, the previous words would not be applicable for commercial loan originations. With commercial loans, no license is required to originate and earn strong commissions. Financial Resources, Inc. is very aggressive with commercial loans. This article would be too long if I were to expand on our commercial programs. For more information, please see our consultant information package or my previous article series on commercial loans as well as my future column on commercial loans.

Simultaneous closings have been touted as the private mortgage answer to the loan origination. In some cases, a simultaneous closing is the answer; however, in most cases it is not. I am not going to beat up simultaneous closings, for they make up a percentage of our business. Simultaneous closings serve a valuable purpose in specific types of deals. Financial Resources, Inc. understands when and where this type of deal will work for the parties involved. We will gladly discuss the pros and cons of a simultaneous closing versus a loan origination when you send us a specific deal. Why did I bring up simultaneous closings? Because I want to add that if a consultant adds the concept of loan originations to his or her business, he or she will be able to close more deals then if he or she were to focus only on simultaneous closings. For more information on this, please refer to an article I wrote last year called "The Sandwich." If you would like a copy, please e-mail your request, and I will be glad to send it to you.

One more reason to consider going to the next level: In our 15 years in the loan origination business, we have seen a number of cycles. These cycles typically center on rising or falling interest rates. In a low interest rate boom cycle, as we have been experiencing during the last few years, many newly licensed mortgage consultants enter the business because of the perception of easy money. When mortgage interest rates go up, as they most likely will, there are fewer borrowers out there; consequently the fast buck mortgage consultants leave the business. I love it when rates go up, for this helps get rid of the mortgage consultants who only know how to handle refinance mortgages. This allows strong companies like Financial Resources, Inc. to grow, because our core business is not based on the ebb and flow of market rates and there is less competition. Of course we handle refinances, but our primary business is loans for people who wish to purchase a house. We can work with all types of borrowers, whether they have strong credit or poor credit, if they have no job or a great job, or if they are buying a log cabin or a regular house, etc. Very few companies have the diversity of loan products that Financial Resources, Inc. has.

You can learn more about loan originations by reading our informational package that can be e-mailed to you upon request. What does this whole article mean to you? We have 15 years of experience, and we are always looking for consultants who wish to grow into a branch office status with Financial Resources, Inc. and join the exciting world of residential and commercial loan originations.

Jeff Long , CPA, is the director of commercial lending and private mortgages of Financial Resources. He is now in the main office in New Hampshire and can be reached by calling 603-279-1133, faxing 603-279-4278, or e-mailing jlong@franh.com. If you have a residential loan request please contact Cindy Buckmaster in the Tulsa , Oklahoma branch office by calling 918-307-1949, by faxing 918-294-1913, or by e-mailing cbuckmaster@franh.com. Consultant Information packages can be obtained by mail, upon a faxed request, by e-mail, or from the Web site at www.financialresourcesinc.net.

Source: American Cash Flow Journal