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Types of Funding
Basically, if you have almost any type of receivables...they can be factored.
There are several basic receivable funding types and each type has several sub-categories within. Our investors
typically focus on business to business or government to business Debt instruments. A debt instrument is, owed over
a period of time, that creates a stream of income for the person who is owed the money. In the Cash Flow Industry,
that stream of income, or outstanding debt, are assets that can be bought and sold just like any other asset. The
wonderful thing about the Cash Flow Industry is the variety of income streams that can be bought. The market for
some debt instruments, such as private mortgage notes, factored accounts receivable, structured settlements, and
viatical settlements, is so enormous; they are considered "industries" in and of themselves. Because there are so
many, income streams are grouped in categories that have similarities, including:
- Business-based ~ This is factoring of receivables from payments owed to a business by another business for
- Collateral/Asset-based ~ This is a debt instrument secured by something of value, basically assets are pledged
in order to ensure the re-payment of the debt. A borrower collateralizes a loan using a pool of hard assets,
such as a home, buildings, a car, business inventory, account receivable and equipment. The assets are
evaluated and the loan principal amount is calculated based on a percentage of each asset class. In no
circumstance is the loan in excess of the total evaluation of the assets.
- Consumer-based ~ income that originates with individual consumers and are paid to businesses or other
consumers. These income streams can include debt that is currently being paid as well as accounts that have
not been paid for a period of time.
- Contingency-based ~ Inheritance and Legal/Lawsuit funding are examples of contingency based assets.
Contingency based income streams are less defined than other income streams because they are based on
uncertain future variables. The person receiving the money may not be legally entitled to the debt or the
amount owed is uncertain and contingent upon outside factors.
- Government-based ~ Government based income streams are like GOLD to our investors and are income
streams paid by the state or federal government. Examples include military retirement, and ANY business
that performs services to almost any governmental agencies.
- Insurance-based ~ income paid by insurance companies, usually stemming from legal proceedings or
insurance coverage. Examples include life insurance, medical facilities and auto body repair shops, basically
any type of receivable that is owed to a individual or a business from an insurance company
RUN IT BY ME
Factoring turns your Non-Performing Assets into a Performing Asset called CASH.
In the cash-flow industry there are over 60 different types of funding streams and we picked the best investment
companies for each. Basically we are brokers for our secondary investors so by submitting an application to MSG
Funding, your request will be sent to several investors that specialize in your type of financial request. With factoring
our fees are typically paid by our investors and quotes typically cost nothing upfront, however, upon acceptance
specific investors may require a minimal due-dilligance/undrwriting fee.