REVISED Purchasing Criteria

Does your submission meet the following criteria?
Here's how to quickly determine if your submission qualifies for funding:

items listed in order of importance

Down Payment 20% minimum of purchase price. Please specify if any of the down payment was borrowed
Payor Credit No minimum FICO*, but no major derogatories (i.e. bankruptcy, 180 delinquency, etc.). Credit history since business purchase should be emphasized
Business Cash Flow The SELLER’S corporate tax returns and P&Ls show enough cash flow to service the note debt. If historical biz cash flow isn't sufficient, we may still fund if buyer has documented outside income or has pledged personal real estate assets with lendable equity
Seasoning Minimum of 1 monthly payment made. Our purchase offer will be higher for notes with more seasoning
Personal Guaranty Required from principal BUYER (or Note “payor”) unless note has substantial seasoning or if CPA audited financial statements show significant cash flow
# of Pmts Purchased Maximum 72 monthly payments; in cases where maturity >72 mos., we can purchase a partial of up to 72 monthly payments
Security Filed UCC-1 with equipment and security agreement encouraged
Lien Position First preferred, second possible depending on business cash flow and CLTV**
Balloon Payments Balloon payments now considered if the # of remaining months until the maturity date plus the # of months needed to amortize the balloon (at the current monthly payment) is less than 72 months
Purchase Amount Maximum quote of up to $500K on any one note
Hybrid Note Hybrids (r/e and business) now considered if real estate collateral is located in CA

* FICO = experian credit score
** CLTV = combined balance of all incumbrances to business value

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