Small Business Funding Alternatives

HOW DID YOU LEARN ABOUT ALL THE DIFFERENT FUNDING OPTIONS AVAILABLE TO PEOPLE EVEN AFTER BANKS TURN THEM DOWN FOR A LOAN?
 
Through hours of study and a training course with the American Cash Flow Association as well as working with a Mentor for the first two years. 

And, it’s been interesting for me to learn that MBA graduates and students and others in the financial services realm you would think would be very knowledgeable about the options available in the cash flow industry for the funding needs of small businesses are not aware of these tools at all (or very little).  Or, they do not give enough import to these options (if they are aware of them) which are so desperately needed by small businesses.  The tools of the cash flow industry seem to be glossed over and not really acknowledged as the option they are. 

For instance, I met with an MBA student (Electrical engineer) who was in her last semester before getting her MBA and she happened to have a class on our funding options that semester and a homework assignment on them the same weekend we met and talked.  So, she told me, “thank you very much!” and took my literature and flyers I brought to our meeting and used to complete her homework assignment!
 
WHO ARE YOUR CLIENTS?

Almost any business that has a piece of paper to leverage.  Construction is sometimes difficult because of retainage fees but it can be done too – by companies that specialize in construction. 

Some examples, though, are:

Medical facilities of all sorts
Manufacturing
Service industries of all types – staffing agencies, trucking, fabricating, engineering, printing, import, export and the list goes on and on…
  
IN YOUR YEARS OF EXPERIENCE, WHAT OBSERVATIONS CAN YOU MAKE ABOUT SMALL BUSINESSES ON THE THRESHOLD OF GROWTH?

I would say that I have observed that oftentimes they are afraid to go for the larger clients and faster growth because of fear of the resultant cash flow issues.  But – that need not be the case! 

Now, the small business owner can do just that and know that the tools offered in the cash flow industry can assist them in accomplishing faster, more rapid growth!  It all goes back to educating and making people “aware” of the options available to them. 

But this, too, is one of the many reasons I love this business I have found!  I like being able to help people and when I can do that and myself in the process, I call that a win/win situation!

WHAT IS THE CASH FLOW INDUSTRY ALL ABOUT AND HOW CAN IT HELP?
 
In a nutshell, it’s about leveraging a businesses “liquid” assets to  self-finance it’s own growth and expansion without incurring debt or giving up equity in the business.  It looks good on the balance sheet  because it is not a “loan” per se but a “sale” of a liquid asset of the business.

The asset-based lending industry is what I call a close cousin to the cash flow industry in that it is more often an actual loan with liquid assets as collateral.
 
WHAT IS THE MOST IMPORTANT PIECE OF ADVICE YOU WOULD LIKE TO GIVE OUR LISTENERS? 
 
Well, at the risk of sounding like I’m promoting myself –  but I think if your listeners agree about cash flow being such an important issue for small business owners – my most important piece of advice would be…..
 
If you have cash flow issues and your traditional funding sources haven’t  been able to help, check with a cash flow consultant — whether that be me or some other cash flow consultant. 

And, I don’t say a funding company that does the actual funding (for example, factoring of accounts receivable), but a “cash flow consultant”, in particular, because there are soooooo many different funding niches/sources in the cash flow industry that a business owner can get lost in it  as easily as in the traditional funding arena.  The cash flow industry  is very, very niche  oriented and that is where a cash flow consultant’s expertise comes into  play — to assess the business owners needs and direct them to the  appropriate funder and save them time and effort and let them do what they  do best…..run their business without worrying about cash flow issues!

So, whether it be me or some other cash flow professional, be sure to check out the funding tools in our industry to supplement the fulfillment of your funding and cash flow needs!
 

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Hi, All -

I was recently interviewed byLinda Coughlin, the owner of Paralelles.com, and host of the radio show, One Big Life, about the alternative small business funding options I work with and I would like to share that interview with you here

There are two other interviews besides mine on the  show but I am about mid way if you wish to fast forward to it.  Let me hear back from you once you’ve listened with any questions or suggestions for future interviews!

We did not have the time to cover all the questions I had been sent as possibilities for discussion, so I thought I would take my preparatory notes for the interview and share those with you here.  I figured if Linda had these questions, you might too!

HOW DID YOU GET YOUR START?

We did cover this on the show but I will recap here too.

I got the entrepeneurial “bug” about 12 years ago when I had my first business and have been looking for something I could really enjoy for this period of time. 

I found the cash flow industry in early 2003 and started out with the plan to deal with the leveraging of owner-financed real estate notes. 

I told an associate about the “cash flow” industry though, and he gave me a hot lead for a pipe fabricating company here in Louisiana with a large contract with Bechtel Corporation and we ended up doing $3million in accounts receivable factoring for it on my very first deal in this industry! 

So, I considered the fact that real estate and I were not really getting along with a lot of number crunching and this new area seemed so much more to my tastes that I would focus instead on accounts receivable factoring, purchase order funding and contract funding.

And for those still not sure what exactly the ”cash flow industry” is about - it is about helping a business to leverage its liquid assets to self-finance its own growth, expansion and daily working capital needs, without acquiring debt or giving up equity in its company.

Factoring of accounts receivable is the most commonly used tool in the cash flow industry.

WHAT IS THE NUMBER ONE REASON FOR BUSINESS FAILURE IN THE U.S. AND WHY?

Lack of working capital!  Cash Flow!  You’ve heard the saying, “Cash is King”, right?  Well, there’s a reason it is out there!  When you’re not able to  focus on your “business” and have to worry with cf issues everything suffers.  That’s true for us in our personal lives too, I think.  What is one of the number one reasons for discord in a marriage or personal
relationship?  Money matters.

Plus, even if you have a great product or service, to be able to produce or get it out there for your customer, you have to have cash flow!

These two, plus the first question below were covered on the show.  I will break this post here and continue on into a second one for the rest of the questions and answers I had prepared for this interview.

Until next post.  Debra

(Here’s the rest of the questions to follow.)

• How did you learn about all the different funding options available to people even after banks turn them down for a loan?
• Who are your clients?
• In your years of experience, what observations can you make about small  businesses on the threshold of growth?
• What is asset-based lending all about and how can it help?
• What is the most important piece of advice you would like to give our listeners?

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This post is intended for my “personal” blog which is hosted by eblogs and seems to be down to me right now for some reason I have yet to figure out.  So, I’m posting here and will edit and transfer it to my personal blog when the server comes back up (I guess?)

There’s a wonderful article in the Advocate today entitled Honoring Organ Donors that I thought I might call to your attention.  It’s about a local (Louisiana) family’s memorable and noteworthy contributions towards this end - organ donation.  Two members of one family within one year’s time made organ donations and they are being honored in The Tournament of Roses Donate Life float, called “Life Takes Flight” and I thought I would like to honor them here too.

I’ve got the “Organ Donor” heart on my driver’s license but I have to admit the thought of what that really means scares me when I really stop and think about it but not enough to stop me from having it noted there.  I am a person who very much likes to help others which is what I feel I am doing with my business and personal life and this is just another step in that direction.

What about you?

Debra

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to help fund your small business!  And the list continues to grow as new ones are discovered as needs arise and creative entrepeneurs and investors figure out a win-win situation for both sides!

But, what “are” the 60 Cash Flow Income Streams Which Can be Sold in the Secondary/Cash Flow Market?

Well, the most commonly known are - private mortgage notes and business invoices. 

But, there are many more.

Business-Based Income Streams are comprised of cash flow streams paid to a business by another business, individual, or government and some examples are: 

Accounts Receivable

Aerospace leases
Bankruptcy Chapter 11 reorganization plans
Bankruptcy receivables
Commercial contracts
Commercial deficiency portfolios
Commercial leases
Construction receivables
Equipment leases
Equipment timeshares (or “fractional ownership interests”)
International receivables
Letters of credit
Medical receivables
Partnership agreements
Purchase orders
Sports contracts
Trade acceptance drafts
Warehouse inventory lines

Collateral-Based Cash Flow Income Streams

Aerospace notes
Automobile notes
Business notes
Collectibles notes
Equipment notes
Homeowner/condominium assessments
Marine notes
Mobile home notes
Private mortgage notes
RV, Motor home and business vehicle notes
Tax lien certificates and tax deeds

Contingency-Based Cash Flow Income Streams

Commercial judgments
Commissions
Consumer judgments
Corporate charitable contributions
Franchise fees
License fees
Royalty payments (including mineral rights fees)
Sales Revenue

Government-Based Cash Flow Income Streams

Farm contracts and conservation reserve payments
Lottery winnings
Tax refunds/credits
 

Insurance-Based Cash Flow Income Streams

Annuities
Casino winnings
Corporate retirement plans
Funeral purchase assignments
Prizes and awards
Structured settlements and class action awards
Viatical settlementsCemetery pre-need contracts
Consumer-Based Cash Flow Income Streams

Cemetery pre-need contracts
Certificates of deposit
Consumer Contracts
Credit Card charge-offs
Delinquent debt
Health and country club memberships
Inheritances
Trust advances
License impounds
Retail installment agreements
Student loans
Timeshare and vacation club memberhips

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In eighty-five (85%) percent of the cases when “small” businesses are sold, the seller must carry back the financing for a large part of the sales price or the full price itself.

Financing to buy a business is not like getting a loan from your banker to buy a home.  Real estate is usually not involved and, therefore, there is no “collateral” a bank can really attach a lien to thereby making the transaction more difficult.

Additionally, many times whenever a business is sold, the buyer does not have adequate funds for a complete purchase.

At that point, the buyer and seller agree on a down payment and sign a contract specifying how the remaining payments are to be made over time. The owner creates a note for the buyer. This is a business note. This business note can be sold for cash.

There is such a broad range of  business notes that can be purchased, it would be impossible to list them all.  However, some examples include the following:

1. Restaurants

2. Convenience Stores

3. Florists

4. Medical/Professional Practices

5. Laundromats

6. Dry cleaners

7. Printers and many others

Who is a business note buyer?

A business note buyer functions very much like a private mortgage buyer. Let’s say there’s a potential buyer of a business who cannot qualify for a commercial loan. In today’s world he’s not out of the running, because he can be financed through a business note buyer. The business note buyer represents a consortium of investors who specialize in this type of investment and liquidity is not a problem.

Fast Cash For Businesses

The seller of the business structures a private loan for the business which:

• 1.  A note is bought by a business note buyer at closing or

• 2. After a substantial downpayment and several months of seasoning (i.e. regular payments), the note will be purchased by a business note buyer.

The business has changed hands successfully for both parties, often in a very short period of time. Basically this means fast cash for the seller, and an easy loan for the buyer.

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Believe it or not, doctors are beginning to factor their receivables.

Of course, medical receivables are quite different from trucking or employment agency or most other receivables in general, with third party payors and all the procedure codes etc.

Although many experts speak of gloom and doom in the medical industry, the fact is that this industry keeps growing by leaps and bounds. Every year, the demand for medical services, medical testing (e.g. MRI Centers, Testing Centers, etc.) and medical supplies keeps getting stronger. This trend is expected to continue as the population ages.

However, even though the growth trend looks good, running a medically related business keeps getting more and more challenging. In the past, doctors and medical suppliers could expect to get large and quick reimbursements for their services. Cash flow was reasonably easy to manage. However, Medicare, Medicaid and 3^rd party insurance companies have put in place strict compensation guidelines. These guidelines can be summarized in two simple points: you can look to receive less money than before and you should be prepared to wait longer to get paid.

Let’s take a look at several options for the funding of medical receivables below.

Option 1

Cash is advanced by the funding source to a provider of healthcare services. The funding source then collects payment from third-party payors such as insurance companies and government insurers.

The funding source holds ownership position on the healthcare provider’s receivables that are advanced (i.e. factored), and a security interest on the provider’s remaining receivables. In a factoring relationship, the receivables are purchased, thereby passing ownership and the credit risk of non-payment on to the factor.

The Process

1. The healthcare provider completes the funder’s application.

2. A Letter of Intent is sent out by funder, specifying what it can do for the healthcare provider. Also included in the LOI will be a fee estimate for related audit.

3. The healthcare provider executes the Letter of Intent and returns to funder with a due diligence fee.

4. Funder then performs an audit of the healthcare provider’s third-party payors which includes:  (a) Analyzing of revenue cycle, billing and collection system; (b) Review of previous billing/collection history to build a matrix on each third-party payor; (c) Provides an on-going review of the billing procedures as long as the factoring relationship continues.

5. The healthcare provider signs a Purchase and Sales Agreement.

6. Funder funds the healthcare provider’s approved receivables upon satisfactory completion of final due diligence. 

Claims Processing

These funders know how critical claims processing is to a healthcare provider’s cash flow and, thus, business success and longevity. If claims are mishandled or incorrectly processed, your cash flow cycle can become sluggish. The efficient operation of claims processing is also vital to a receivables funding program as noted above in Option 1.

The primary goal of a billing or claims processing relationship is to ensure that the cash collection process is carried out with maximum efficiency, so the collection percentage is high and the time-to-collection is minimal. The claims processor’s primary responsibility involves taking over the billing function of a healthcare provider by acting as the liaison between the provider and the third-party payor.

Specific services include:

• Invoicing third-party payors (commercial insurance companies, HMOs, Blue Cross/Blue Shield, Medicare, and Medicaid), self-insured companies, and individuals who have no insurance or are required to co-pay a percentage of their bills.

• Managing the collection of accounts receivable including the resolution of disputes over claims with both payors and utilization review companies, handling patient and payor inquiries regarding billings, and pursuing unpaid invoices.

• Financial reporting and analysis, including the production of summary reports relating to payor mix and collection performance.

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To be wronged to the point of having to resort to filing suit, waiting throughout long, drawn-out judicial proceedings, and sometimes advancing court costs, etc. is a nerve-wracking and forgettable experience for most.

But to have the Judgment you worked so hard to have awarded   go unpaid by the judgment debtor adds insult to injury! Unfortunately, nearly 80% of all judgments are never satisfied.

Your judgment may have been awarded by the court but the follow through is completely your responsibility! Bet you didn’t know that!

But…..a judgment is a piece of paper with a dollar value attached to it, right?

So, you’re in luck – It is a negotiable paper instrument in the cash flow industry.

So, there are funders in this industry who have the resources, expertise, and determination to assist judgment holders in the process of collecting what is rightfully due them.

Oftentimes, judgment debtors will try and hide assets but these funders have the expertise to uncover any assets or sources of income, and take whatever steps are necessary to legally seize them and satisfy the judgment.

Even better, there are no upfront fees to the judgment holder and the funders do not receive payment unless they are able to recover for you!

These funders do not do an outright purchase of the judgment due to the fact that it can oftentimes be a lengthy process to pursue and collect the money owed — if at all. It is too risky an investment for even the most daring of investors.

They will take it on a “contingency” basis, though, and put their valuable time and sweat equity into recovering the money as well as advance any costs involved. So, the judgment holder can rest assured they will give it their “best shot”. Some might liken them to a modern-day “bounty” hunter!

First and foremost important fact for the weary judgment holder to remember —

Once you make the decision to allow these funders to handle the enforcement of your judgment, you basically do not have to do anything but:

• 1. Give the funding company the right to collect the judgment,
• 2. Inform the funding company of the basic facts of the case and any information on the judgment debtor available, then
• 3. Sit back and let the funding company investigate, seek out, seize and collect the judgment, plus interest and allowable costs. The funding company will advance any costs and expenses incurred in collecting on the judgment.

But….it is Extremely Important to not delay. The longer a judgment holder delays in getting the process moving, the more time the judgment debtor has to dispose of or hide assets which they do oftentimes try to do.

So, —– there is nothing for the judgment holder to lose (and lots to easily gain) by trying this option!

Some FAQs:

Can judgment holder collect interest on my unpaid judgment?

Usually, yes. Most judgments include a provision for collecting interest, usually from the day it was rendered. The actual interest rate and calculation procedure (compound or simple interest) varies from state to state.

Why not use an attorney to collect the judgment?

You can use an attorney if you are willing to pay a retainer and pay a fee of between $125 and $175 per hour, plus costs upfront, whether anything is collected or not. With our option, the judgment funder pays you a percentage of everything recovered and puts up any up-front costs. Also, this is their one and only area of work; collecting judgments is 100% of their business.

How about using a collection service?

A collection service may contact the debtor and harass him, they may even place a black mark on his credit report, but they rarely collect! With the passage of the FDCPA (Fair Debt Collection Practices Act), the debtor has the right to simply tell the third-party debt collector to stop ALL contact. A judgment funder will investigate the debtor, find his assets, and then seize them to collect the judgment.

Is there any guarantee of collecting the judgment?

No. Sometimes there are simply no assets to seize. However, the judgment funder will employ all legal means of uncovering existing assets including access to databases that enable them to garnish wages and bank accounts, and seize the assets of debtors if necessary….. because they DO NOT GET PAID if they are unable to collect the judgment!

Must the judgment holder pay for the expenses incurred in collecting on the judgment?

No.  The judgment company advances the cost of all expenses incurred in the judgment collection. In most cases, the expenses incurred in collecting on the judgment are either added to the total judgment (upon petition to, and approval by, the court), or the costs incurred are deducted from the amount recovered from the debtor before payment to you.

How long before results are seen?

It all depends on the difficulty in locating your debtor, and the difficulty in uncovering his assets. Some debtors are very smart about concealing their assets. Although the judgment company normally tries to get results in the first few weeks, recovering funds could take a few months or longer - sometimes a year or two.

What about a judgment awarded in one state against a debtor who resides in another state?

In most cases this is possible. Especially if your debtor answered your complaint or made an appearance at the trial or hearing. However, if your defendant didn’t answer or appear, the judgment is called a ‘Default Judgment’. This is considered a weak judgment. Each of us has the right to confront our accusers and to defend ourselves against any legal claims. Therefore, if the debtor is able to show the court that he was not properly served, or served in the wrong capacity, he can file a motion with the court asking it to set aside the judgment. This is the most common ‘hurdle’ that must be cleared in any judgment collection efforts, especially when done across state lines.

Is there a statute of limitations on executing on a judgment?

Yes. Your state law sets a limit on how long a judgment is valid, usually a period of 10 years from the date the judgment was rendered. Some states provide ways to renew the judgment for additional periods of time, usually another 10 years. However, in most cases, the sooner you collect on the judgment, the better.

How does all this work?

First,  an agreement is drawn up detailing the specifics of the judgment company’s purchase of the judgment. If acceptable, you then assign the judgment to the judgment company making them the judgment owner of record. Once this ‘assignment’ has been filed with the court, the judgment funder has the legal right to investigate the debtor and to proceed with the legal process of collecting on the judgment. On receipt of the signed documents, they will immediately initiate collection of the judgment.

And remember, it is to the judgment company’s advantage to move as expeditiously as possible, too, which will help you to be confident that all is being done as quickly as it can be done!

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Oftentimes people compare factoring fees to automobile or mortgage lending rates and factoring initially appears expensive.  They tend to annualize the points charged by the factor - equating 3 points per month to an interest rate of 3% or 36% annually. This is both an incomplete and incorrect comparison.  

First, factors purchase accounts receivable at a discount. They do not lend money.  (Similar to a sale of a personal vehicle between two individuals.) 

Second, the “paper” (accounts receivable invoices) is short-term in nature and management intensive versus a bank loan, which is secured against some stable asset and usually advanced once.  Conversely, factors are continuously advancing and collecting accounts receivable, providing clients with ongoing reports, credit, due diligence, and personalized account management services.   

So, let’s look at some examples: ·       

Think of a business which typically offers a 2% discount for early payment of its invoice – say within 10 days of issue.      

If this 2% discount for payment within 10 days is annualized (similar to the thought processes mentioned above) using the thirty-six,10-day periods in a year, 72% interest has been lost.       

But — are you really losing 72% for early payment? Of course not. 

Another example: 

• You get a factoring advance that costs 3 points per month but that consistent cash flow from factoring helps you to generate more business at your 20% profit margin.

• So, would it not have cost you 17% by not factoring?

 QUESTION:        What amount of return is generated when a company has an order but no way to fill it?   

QUESTION:          How much return does a $30 to $35 overdraft fee generate? 

QUESTION:           How much money is a business owner and/or his employees earning when they are running after payments from customers? 

All this being said, a company can mitigate any factoring fees incurred by being creative.  

For instance, with ready cash, some companies have been able to negotiate a larger discount (than their factoring fees) with their suppliers by paying those suppliers faster with their ready cash – thus, more than offsetting the factoring fees!  And, I’m sure there are many more creative ways that a smart business owner can figure out so that growth and sales opportunities are not left at their door! 

I submit that when a business owner truly focuses on ALL the positive aspects and benefits which will occur as a result of factoring and maintaining a consistent cash flow, the choice of whether or not to factor will be clear.

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OK - so who, besides me - in my “blogworld” - is going to be watching the 41st Annual CMA Awards tonight?

This will, in fact, be my first one to watch!  I have come to realize in the last several years just how much I do like Country music and how much “country” is really in this girl…a lot more than I realized previously.  On a recent visit by my brother I made him laugh when I told him I had a lot more yeehaw’s in me than I realized before.  But then, I love our cajun music, zydeco, dancing, etc. etc……but I digress…on to examples.

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Other Liquid Assets Which a Business Can Leverage to Help Keep it “Cash Rich” as Opposed to “Cash Poor”……………….by Debra Maples

Okay, so far we’ve been talking about the Asset-Based Lending industry and/or it’s cousin, the Cash Flow Industry and how they can help businesses with their working capital and cash flow issues.

We have reviewed some of the most commonly leveraged assets in these industries such as a business’ invoices, a merchant’s “future” credit/debit card receipts, equipment, and purchase orders and contracts.

We have also learned about some of the “financial tools” used to leverage these assets that include:

1. Factoring of a business’ accounts receivable which converts that business’ invoices into immediate cash for daily operating expenses;

2. Advances against a merchant’s “future” credit/debit card receipts;

3. Equipment leasing which helps a business leverage it’s equipment while it is creating revenue; and

4. Purchase order and contract funding for goods and services.

But what about “other” assets a business (or individual) might have which can be leveraged for its cash flow needs?

“Others?” you ask. Yes! There are many more! Remember…any piece of paper with a dollar value attached to it can be leveraged in these industries. And we will take a brief look at some of them now.

Perhaps your business has another liquid asset of which you are unaware which you can leverage and use to further enhance your cash flow! This list is always growing too. So, if you feel you have a negotiable paper instrument with a dollar value but are not sure, don’t hesitate to check it out!

Business-Based Cash Flow Income Streams:

• Accounts Receivable

• Aerospace leases

• Bankruptcy Chapter 11 reorganization plans

• Bankruptcy receivables

• Commercial contracts

• Commercial deficiency portfolios

• Commercial leases

• Construction receivables

• Equipment leases

• Equipment timeshares (or “fractional ownership interests”)

• International receivables

• Letters of credit

• Medical receivables

• Partnership agreements

• Purchase orders

• Sports contracts

• Trade acceptance drafts

• Warehouse inventory lines

For instance, a strip mall owner who has 20 retail merchant leases for the strip mall but does not need all the cash flow each month that is generated from these leases can sell a portion of the leases. The owner can then use the proceeds from this sale for improvements to the strip mall or for whatever other purposes he may wish, thus, self-financing the improvements!

Collateral-Based Cash Flow Income Streams

• Aerospace notes

• Automobile notes

• Business notes

• Collectibles notes

• Equipment notes

• Homeowner/condominium assessments

• Marine notes

• Mobile home notes

• Private mortgage notes

• RV, Motor home and business vehicle notes

• Tax lien certificates and tax deeds

Private mortgage notes are the most easily recognizable of this group. This liquid asset (mortgage) has been leveraged when the name of the company to whom a mortgage payment is made changes from one company to another. Almost every long-term homeowner has experienced this at least once.

Consumer-Based Cash Flow Income Streams

• Cemetery pre-need contracts

• Certificates of deposit

• Consumer contracts

• Credit Card charge-offs

• Delinquent debt

• Health and country club memberships

• Inheritances

• Trust advances

• License impounds

• Retail installment agreements

• Student loans

• Timeshare and vacation club memberships

Consumer contracts such as with mini-storage facilities can also be leveraged (or a portion sold) if the storage facility owner does not need all of the cash flow from the contractual payments, similar to the strip mall owner in the above scenario.

The majority of the instruments listed under the first three categories (as noted in the above examples) are leveraged in portfolios rather than individually.

In the following categories, the instruments can be leveraged both individually and in portfolios.

Contingency-Based Cash Flow Income Streams

• Commercial judgments

• Commissions

• Consumer judgments

• Corporate charitable contributions

• Franchise fees

• License fees

• Royalty payments (including mineral rights fees)

• Sales Revenue

The Merchant Credit Card Receipt Advances would fall under the Sales Revenue category whereby the merchant is leveraging its monthly, documented credit and debit card sales.

Government-Based Cash Flow Income Streams

• Farm contracts and conservation reserve payments

• Lottery winnings

• Tax refunds

• Tax credits

We all know how Louisiana has been whooing the film industry with tax credit incentives, right? And most of these companies are not Louisiana companies either, right? So, what are they doing with “Louisiana” tax credits? They are SELLING them to Louisiana companies who can use them thereby leveraging a liquid asset!

Insurance-Based Cash Flow Income Streams

• Annuities

• Casino winnings

• Corporate retirement plans

• Funeral purchase assignments

• Prizes and awards

• Structured settlements and class action awards

• Life Insurance cashouts (sometimes called viaticals)

There are funders who will purchase a person’s whole life insurance policy at a higher rate than what that individual would get from the insurer should he or she decided to cancel and cashout the policy.

If you have any questions at all or one of these liquid assets you would like to leverage or discuss in more detail, please do not hesitate to give me a call for a free, no-obligation consultation.

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