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Cash flow notes can generate instant cash when you need it the most.

Cash flow notes are legally binding contracts between two or more parties which document a promise to pay. Although there are more than 60 types of cash flow notes, some of the more common types include mortgage, inheritance, structured settlements, business, and lottery winnings.

Real estate notes and land contracts are cash flow notes are secured by real property, such as a building or house. When real property is used for collateral, a mortgage or trust deed is added to the note which states the property will be used for payment if the borrower defaults on the loan. Various types of real property can be used to secure cash flow notes. In addition to buildings and homes, other types of property include mobile homes, automobiles, boats, and even airplanes.

Structured settlements offer little flexibility and can rarely be altered once they are signed.
However, structured settlements can be liquidated to a note buyer such as Simon Volkov. Depending on the circumstances, individuals can sell either the entire structured settlement note or only a portion of it.

Business notes are usually secured by the assets owned by the business. There are several different types of business notes including "Factoring", "Purchase Order Funding", and "Seller Carry Back Notes."

Factoring involves the sell of account receivables to a funding source (Factor). The Factor provides an advance on the receivables and charges a small fee for the loan. In this type of cash flow note transaction, the Factor typically purchases between 70 and 80 percent of the notes receivable.

For example, if a business owner has $10,000 in receivables which are due in 30 to 90 days, he can sell a portion to a Factor. If the Factor purchases 80 percent of the receivables, he will pay the business owner $8000. Once the business owner is paid by his customers, he in turn repays $8000 to the Factor, along with the fee.

Purchase order funding is another form of business cash flow note. Basically, it works the same as Factoring. However, instead of selling receivable notes, the business owner is selling purchase orders. This type of cash flow note is usually only available when purchase orders are backed by a credit-worthy customer.

Seller carry back notes are created when a business owner provides financing to the buyer. Owner financing is particularly helpful for small business owners because it is oftentimes difficult to obtain a small business loan from conventional lending institutions.

Cash flow notes can also be in the form of lottery winnings, structured settlements, inheritance notes and annuities. Cash flow notes are a legal payment contract, which in turn makes them a valuable asset. Just like any other asset, cash flow notes can be sold for a lump sum of cash.

If you hold cash flow notes and are interested in selling them for a cash payment, Simon Volkov can help. We work directly with you to reach your financial goals. To obtain more information or arrange for a free consultation with one of our financial consultants, fill out our secure Cash Flow Notes form.

Upon receipt of your information, Simon Volkov will personally contact to further discuss your financial requirements. Your information is held in the strictest confidence and will never be shared with anyone.

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Published on August 31, 2007 at 08:54 PM

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