Property of MSG Funding Capital Group, LLC. All rights reserved 2005-2006
The largest clients for secondary financing is typically primary lending institutions. Primary Lenders know the “time value of money” concept. It's the
concept of "time value of money" that tells us that money is worth less in the future. Basically, a $1 in your pocket today is worth a lot more than $1
ten years from now. Exactly how much more depends on the fluctuations in the value of the dollar as well as inflation and other factors. A seller of
an income stream may accept a lesser amount than the total amount of the payments due in exchange for cash now. Because of the time value
of money, the seller may actually save and make money over the long run, especially if they choose to invest the cash.
In all cash flow transactions three parties are involved:
- The Seller (you) ~ the holder of the assets
- The Funding Source ~ the buyer of the assets
- MSG Funding ~ consultants that bring Sellers and Funding Sources together
Most investors focus on purchasing future receivables so factoring is a great example to explain how the cash flow industry works. In a typical
factoring transaction, payments that are owed in the future are purchased for a lump sum of cash today. For example, let's say you own a
manufacturing company and you get an order for $20,000 worth of merchandise. The products will take you several weeks to make, deliver, and
invoice. Then, it will take another 30 to 90 days before you get paid for your goods. Will you be willing to pay a percentage, say 4 percent to a
funding source in order to have $19,200 to work with now rather than $20,000 three or four months later?
- Yes, if you want $19,200 to buy supplies at a discount because you are able to pay cash!
- Yes, if you want $19,200 to pay off a loan and reduce your interest costs!
- Yes, if $19,200 would help expand your business and increase revenue!
Most people do because it makes sense. It makes so much sense that businesses and individuals are taking part in transactions like this every day
and by doing so, they are taking part in the Cash Flow Industry, selling income streams for cash.
* MSG offers so much more then factoring.
RUN IT BY ME
In the Cash-flow Industry...When banks say "NO",we say "YES".
Our Industry Wants Your Success. Almost 85% of business transactions include secondary financing from the seller. In
2004, secondary financing industry lenders provided over $5.7 Trillion in funding transactions and currently the
industry is growing at a rate of 10% per year. Our funding sources have a vested interest in you and our success
depends on your success.
MSG Funding provides you access to the secondary financing industry. The problem with the primary lending
industry is that it is far over regulated making the borrowing process frustrating. Our funding sources have a vested
interest in your success while over regulation of the banking industry makes it almost impossible for individuals and
small business to get any type of funding and...our investors fill the gap. The secondary market is represented by
investors and funding sources and we have a nationwide network of hundreds of funding sources that provide you
access to billions of dollars.
With the primary lending industry you always incur more debt. The Primary lending industry is any party that
originates financing including banks and lending institutions, major corporations and a variety of governmental
agencies like the FHA or SBA. At MSG Funding Capital Group our funding sources purchase your personal and
corporate non performing assets for cash giving you working capital for payroll, growth and basically whatever you
want or need.
Cash-Flow Industry Basics