Other Assets Collateral List
Real Estate: (Print out this form if you own more that one property or if you have a Portfolio)
List each property separately with a description and the following information:
Description, _______________________________________________________________________

Year purchased and price,____________________________________________________________
 
Net income if applicable,_____________________________________________________________
 
Annual loan payment and balance of mortgage/contract,____________________________________

List terms of mortgage/contract,________________________________________________________
 
Estimate of current market price,$______________________________________________________
 
Estimate of current market equity,$_____________________________________________________

Comments:________________________________________________________________________
Estimated Total Net RE Equity Value: $_________________

Accounts Receivable:
Compile a recent AR Aging Report
Comments: _______________________________________________________________________
Estimated AR Total: $_________________

Inventory:
Compile a recent Inventory Summary List

"BUSINESS  GLOSSARY"

"A" credit customers:
Consumers with impeccable credit, who can obtain a loan from traditional lenders.

Acceleration Clause:
Language in a lease that secures payments for the full term of the lease.

Accounts Payable:
The amount of money a company owes for goods and services it has received; any outstanding debt that a company has.

Accounts Receivable:
A collection of a company's outstanding invoices (invoices which have not yet been paid by the company's customers).

Accounts Receivable Aging Report:
A report showing how long invoices from each customer have been outstanding.

Advance Rate:
The percentage of the face amount of an income stream that a funding source will advance to a client.

Amortization:
The gradual, systematic payment of a debt, such as a mortgage or other loan, in installments of principal and interest for a definite time, so that at the end of that time, the debt will have been paid in full.

Articles of Incorporation:
A document filed with a U.S. state by the founders of a corporation. After approving the articles, the state issues a Certificate of Incorporation; the two documents together become the Charter of Incorporation.

Asset:
Anything having commercial or exchange value that is owned by a business, institution or individual. A business' assets might include its real estate, equipment inventory, intellectual assets such as copyrights or trademarks, and accounts receivable.

Assignability:
The ability to assign (or sell) an income stream to another individual or business.

Assignee:
The person or business entity who is given, obtains, or buys the right to an asset.

Assignment:
The transfer of the rights, title or interest of any debt instrument that is properly owned by another party.

Assignor:
The person giving or selling an asset, and subsequently, forfeiting rights to that asset.

"B" through "D" credit customers:
These consumers have less than perfect to bad credit and usually cannot qualify for traditional financing. Also called sub-prime credit customers.

Bad Debt:
Any debt that is delinquent and has been written off as un-collectible.

Balance sheet:
A financial statement that shows a business' current financial condition, with assets on the left side and liabilities and net worth on the right side.

Balloon:
The balance of principal that is due and owing in its entirety at a specified point in time, but in any event, less than the time required to fully amortize the debt.

Bankruptcy:
A state of insolvency of an individual or organization. The inability to pay debts.

Beneficiary:
The person or party entitled to receive the benefits, or proceeds, of the life insurance policy upon the death of the insured person.

Bill of Sale:
A document used to transfer the title of certain goods from seller to buyer.

Business-based income streams:
Cash flow instruments that are paid to a business by another business or government.

Cash flow:
The flow of cash through a business or household.  In business terms, cash flow involves the flow of cash into a company in the form of revenues, and out of the company in the form of expenses.

Cash flow broker:
Professional whose primary purpose is to unite income stream sellers with funding sources. They may operate as referral sources or as the primary liaison for cash flow transactions.

Cash flow industry:
The buying, selling, and brokering of privately held debt in the secondary marketplace; the marketplace where businesses and individuals get help managing their cash flow needs.

Cash flow instrument:
Future payment or series of payments. Also called a debt instrument or income stream.

Cash flow specialist:
A cash flow professional who brokers cash flow transactions or buys cash flow instruments.  

Cash flow transaction:
Occurs whenever a funding source pays cash to an individual or business in exchange for an income stream.

Chattel mortgage:
A mortgage on personal property, given to secure a debt. Typically used in the sale of a business. Also called a security agreement.

Collateral:
Something of value (land, a home, a car, etc.) that is pledged as security to ensure the payment of a debt. Collateral is promised to a lender until a loan is repaid. If the borrower defaults, the lender has the right, by law, to seize the collateral.

Collateral-based income streams:
Cash flow instruments that are secured by collateral.

Collectibility:
Refers to the funding source's ability to collect future income stream payments once they are purchased.

Commission:
Fee paid to a broker for executing or referring a cash flow transaction.

Consumer-based income streams:
Cash flows in which the party that owes payments is a consumer, a private individual.

Contingency-based income streams:
Cash flows in which the recipient is not necessarily legally entitled to receive payments, or in which the amount of the payment is uncertain or contingent upon outside factors.

Corporation:
A legal entity, chartered by a U.S. state or the federal government, and separate and distinct from the persons who own it. It is regarded by the courts as an artificial person; it may own property, incur debts, sue or be sued.

Creditor:
One who is owed payments on a debt by a debtor.

Debt instrument:
Future payment or series of payments, or a debt that one party owes to another party. Also known as income streams or cash flow instruments.

Debtor:
One who owes something and makes payments to a creditor.

Default:
The omission or failure to perform or fulfill a legal duty, obligation, or promise (i.e. to pay a debt).

Due diligence:
Exhaustive research on a transaction, income stream, client, and/or payor. Due diligence may involve credit checks, appraisals, UCC searches, lien searches, or on-site visits with clients.

Equity:
The value or interest an owner has in property over and above any indebtedness owed on the property.

Escrow:
The system or process by which money documents, personal property, or real property is held in trust for another party by a disinterested third party until the terms and conditions of the escrow instructions are completed or terminated.

Face value:
The current principal balance on an income stream.

Factor:
A funding source that specializes in funding accounts receivable.

Factoring:
The purchase of a business' accounts receivable at a discount.

Fictitious name:
A legal statement filed when a person uses a name other than his or her own to operate a business.

Foreclosure:
A legal proceeding in court to seize property given as security for a debt that is in default.

Funding source:
An individual investor or an investment company that buys income streams.

Government-based income streams:
Cash flows paid by a government entity, either directly or through an insurance company.

Hypothecation:
Borrowing funds from a lender, investing those funds in a debt instrument, and giving the lender a security interest in the debt instrument as the collateral for the loan.

Income stream:
A future payment or series of payments, or a debt that one party owes to another party. Also known as a debt instrument or cash flow instrument.

Institutional lenders:
Savings and loan associations, local and regional banks, mortgage companies, finance companies, and commercial lenders.

Insurance-based income streams:
Cash flows stemming from insurance companies and paid to individuals or businesses.

Intangible personal property:
Something that has value but is not a tangible asset, for example, a trademark, copyright, patent, or trade secret.

Investment-to-value ratio:
A measure of how secure a creditor's position is and how likely the creditor is to recoup all of his or her money in the event of a foreclosure.

Joint venture:
A business entity established for a specific task, operation, or goal.

Leverage:
The ratio of debt to total assets.

Loan-to-value ratio:
A measure of how heavily mortgaged a property is and how likely the owner is to default on his or her debts.

Marginal credit customers:
Consumers who may have had some slow pay problems, but generally pay their bills.

Market value:
The price at which a ready, willing, and informed person would buy something; the price property would command in the current market.

Mortgage:
A written instrument that creates a lien by pledging real property as security for a debt.

Notice of Pre-lien:
A document notifying the owner of real property that materials or services are being furnished to his real property, putting him on notice that the one sending it will look to have a lien against the real property if those materials or services are not paid for.

Owner financing:
A type of financing in which the seller of a tangible item accepts a promissory note as a portion of the purchase price. Also called seller financing.

Partnership:
A common form of joint ownership of a business.

Payee:
Person or business that has the right to receive a payment or series of payments and is interested in selling that income stream for cash. (Also called the seller or client.)

Payor:
The person, company, or government responsible for making payments on an income stream.

Partial:
Any part of a payment stream that is less than the full amount due.

Personal guaranty:
A contractual agreement between a funding source and a seller, whereby the seller assumes personal responsibility and liability for the obligations of the income stream.

Portfolio:
A group or package of income streams of the same type.

Privately held:
Owed to a private individual or business rather than to a bank or other financial institution.

Profit and loss statement:
A financial statement that shows a historical record of a business' income and expenses.

Promissory note:
A written promise to pay a specified amount to a specified party over a certain period of time.

Real property:
Real estate.

Reserve:
An amount a funding source holds in its account to cover potential payment defaults. After a certain time period has passed, the funding source rebates the reserve to the client less any fees or charges for delinquency. Also called a bad debt reserve.

Satisfaction:
The discharge of an obligation by paying a party what is due (i.e., the satisfaction of an IRS lien or the satisfaction of a mortgage).

Seasoning:
The length of time payments have been made on a note or other debt instrument.

Secondary market:
The marketplace where individuals and businesses can sell privately held income streams to funding sources for cash.

Securitization:
The bundling and resale of debt instruments to investors; permitted only for parties licensed and regulated by the SEC.

Security interest:
An interest in property, other than real estate, which is given as security for a debt or other obligation. A security interest is created by execution of a security agreement and one or more financing statements under the Uniform Commercial Code.

Seller:
The person or company that is holding a debt instrument and wants to sell it.

Servicing:
The collection of payments of interest and principal, and trust fund items such as fire insurance, taxes, etc., on a note by the borrower in accordance with the terms of the note. Servicing by the lender also consists of operational procedures covering accounting, bookkeeping, insurance, tax records, loan payment follow-up, delinquent loan follow-up and loan analysis.

Sole proprietorship:
A business owned and operated by an individual.

Subordination:
The act of a creditor acknowledging in writing that a debt due him or her by a debtor shall be inferior to the debt due another creditor by the same debtor.

Tail:
The payment stream and/or balloon payment of an income stream subsequent to another party's right and interest in the income stream. Usually the back half of the payment stream when another party has purchased the front half.

Tangible personal property:
Personal property other than real estate, such as cars, boats, or other assets.

Time value of money:
Concept that addresses the way the value of money changes over a period of time.

Title commitment:
A commitment on the part of the insurer, once a title search has been conducted, to provide the proposed insured with a title insurance policy upon closing.

Title insurance:
Title insurance can benefit either the payor or the payee. Should the beneficiary suffer any damages due to clouded or false title to real estate, title insurance recompenses the damaged party to the extent of the damages.

Title policy:
An insurance policy that insures a party against loss due to a defective title.

Trial balance printout:
A spreadsheet that lists all loans in a portfolio and their payment schedule. Usually required for a portfolio transaction.

Uniform Commercial Code (UCC):
Standardized set of guidelines protected by law that set down how business transactions must be conducted.

Unseasoned:
A lease or note that has had few, if any, payments