Re: Training Notes (Need Help) - Posted by John Behle
Posted by John Behle on June 04, 1999 at 16:20:18:
We do the exact same thing with a personal development training company. We do similar things with food storage companies and other consumer products. I love taking business from Beneficial
Our approach is on a one on one basis for the funding. We receive a discount from the company so our terms to the payor don’t have to be exhorbitant.
We meet with the people and many times we can do a debt consolidation loan through our mortgage company that gives them the cash they need as well as helps stabilize them financially.
In other cases, we create a small second against their equity and still have a decent LTV.
Each case where they don’t have collateral we again consider on a per customer basis. If credit, job and financials look good, we will make a non-secured loan. The gurantee I negotiated with the company is a replacement guarantee. If a note goes bad, they will replace it with a performing one. A second option we structured is a “training credit” that allows us to put people in ourselves.
The first option of a refinance is non cash or short term cash for us. The second option is a readily saleable note (but we keep them). The third option we keep also, but if structured properly and seasoned they are saleable or loanable.