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Other Receivables Financing


There are many kinds of payment streams, "receivables", that can be turned into immediate cash. These receivables might be a payments now being received by the beneficiary or they could be available sometime in the future. There might be hundreds of payments due or only one payment due.

Pricing and discounts on these receivables will depend on the time value of money, the creditworthiness of the payer, "seasoning" of the payments, and the collateral involved if any.
Mortgage Notes: The holder (beneficiary) of a real estate Mortgage Note (Trust Deed and Note in some states) is the holder of a receivable that can often be turned into a lump sum of cash. The holder might sell all or part of the mortgage to a note buyer. The amount received is based on the time value of money and the lenders evaluation of the risk.
Business Notes: As with mortgage notes, Business Notes are often sellable in part or in full. The collateral is usually not as strong as with residential real estate notes and thus the pricing may be a little weaker.
Commissions: Commission agreements promising payment now or later for services may also be sold as a "receivable".
Prizes and Awards: A prize or award that is a cash receivable can be sold for cash now rather than having to wait until later. These are usually limited to government prizes such as a lottery payment stream.
Vehicle, Aircraft & Boat Notes: These kinds of notes are also sellable for cash. The collateral is not as stable as with real estate and thus the discounts tend to be higher that with well secured notes.
Structured Settlements: These are legal payment settlements as the result of a legal proceeding. They are sellable payment streams. Their value will depend significantly on the credit worthiness of the payer. However, these payers are often insurance companies or governments so they can be quite creditworthy.
Judgments: Judgments can occasionally be sold, but, usually with great difficulty. Often the reason that they are being sold is that they are known to be a collection problem. Therefore, they are priced very aggressively.
Annuities: Annuities that are cash payments are just another form of a receivable. In many cases the beneficiary may sell his rights to all or part the income stream for a lump sum of cash now.
Disability Payments: In some cases these can be exchanged for lump sum cash.   

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