Posted by SCook85 on June 08, 2000 at 21:46:16:
First Collateral is a short term line. You can only have your notes on the line for 90 days, after that they hit you for ten percent of the note balance every month. Also before you can put a note on your line at First Collateral you have to have a commitment from someone to buy it from you (they want you to sell it to their parent company “The Associates”). Without a commitment to buy from someone they won’t even let you put it on the line. Your commitment from the associates must read that they will buy the note with 30, 60, or 90 days seasoning. Any more they won’t let you put the note on the line. They give you lines of between $1,000,000 and $2,000,000. They expect you to turn it often (monthly). This line is designed for a higher volume note buyer who brokers everything.
FNAC on the other hand wants you to hold your notes long term. They don’t have a time period in which you have to turn your note, however you do have to renew your line every year. As long as you have performing assets this should not be a problem. If you fill your line up they have what is called an investor pull in which you can move your notes and free up your line for future purchases.
I hope this helps!
Steve