Many people holding “paper”, “promissory note” would like to sell it if they only knew the option existed. The advantage of a lump sum of cash now instead of no more small payments. They want their money now!

Which would you rather have : the $5.00 in my right hand or the $10.00 in my left hand? What if you had to wait seven years for the $10.00 but you could have the $5.00 now, which would you rather have? The $5.00, of course.

Many people holding a “note” have a fear of “delinquent payments”. The note won’t be worth anything if the payor doesn’t pay (defaults).

One of the most important factors is usually the length of time it will take to collect all the payments. The longer we wait, the less value or buying power the money has, due to inflation and economic conditions. This is what is referred to as “Time Value of Money”. Immediate cash is more valuable than money to be received in the future.

When you build a project, sometimes you carry part of the financing when you sell it. That paper is nice to hold onto for the income, but sometimes you could accomplish more if you had a bigger chunk of cash now , do you know what I mean?

For more information visit my web page.

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http://www.trustdeedsjosiem.blogspot.com

Their are many different kinds of paper:Account Receivable, Aircraft, Deferred Settlements, Government Contracts, Mechanic’s Liens, Land Contracts, Real Estate Notes, Automobile notes, Business invoices, Casino Winnings, Class Action Awards, Home Improvement Notes,Tax Liens and I could still go on.