Consumers with impeccable credit, who can obtain a loan from traditional
Language in a lease that secures payments for the full term of the lease.
The amount of money a company owes for goods and services it has received;
any outstanding debt that a company has.
A collection of a company's outstanding invoices (invoices which have
not yet been paid by the company's customers).
Receivable Aging Report:
A report showing how long invoices from each customer have been outstanding.
The percentage of the face amount of an income stream that a funding
source will advance to a client.
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.
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.
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.
The ability to assign (or sell) an income stream to another individual
The person or business entity who is given, obtains, or buys the right
to an asset.
The transfer of the rights, title or interest of any debt instrument
that is properly owned by another party.
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.
Any debt that is delinquent and has been written off as uncollectible.
A financial statement that shows a business' current financial condition,
with assets on the left side and liabilities and net worth on the right
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.
A state of insolvency of an individual or organization. The inability
to pay debts.
The person or party entitled to receive the benefits, or proceeds, of
the life insurance policy upon the death of the insured person.
A shipping document which gives instructions to the company transporting
A document used to transfer the title of certain goods from seller to
Cash flow instruments that are paid to a business by another business
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.
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.
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.
Future payment or series of payments. Also called a debt instrument
or income stream.
A cash flow professional who brokers cash flow transactions or buys
cash flow instruments.
Occurs whenever a funding source pays cash to an individual or business
in exchange for an income stream.
A mortgage on personal property, given to secure a debt. Typically used
in the sale of a business. Also called a security agreement.
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.
Cash flow instruments that are secured by collateral.
Refers to the funding source's ability to collect future income stream
payments once they are purchased.
Fee paid to a broker for executing or referring a cash flow transaction.Consumer-based
Cash flows in which the party that owes payments is a consumer, a private
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.
The process of converting a qualified prospect into an active client.
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.
One who is owed payments on a debt by a debtor.
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.
One who owes something and makes payments to a creditor.
The omission or failure to perform or fulfill a legal duty, obligation,
or promise (i.e. to pay a debt).
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.
The value or interest an owner has in property over and above any indebtedness
owed on the property.
The system 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
The current principal balance on an income stream.
A funding source that specializes in funding accounts receivable.
The purchase of a business' accounts receivable at a discount.
A legal statement filed when a person uses a name other than his or
her own to operate a business.
A legal proceeding in court to seize property given as security for
a debt that is in default.
An individual investor or an investment company that buys income streams.
Cash flows paid by a government entity, either directly or through an
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.
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.
Savings and loan associations, local and regional banks, mortgage companies,
finance companies, and commercial lenders.
Cash flows stemming from insurance companies and paid to individuals
Something that has value but is not a tangible asset, for example, a
trademark, copyright, patent, or trade secret.
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.
A business entity established for a specific task, operation, or goal.Lead:
A piece of information of possible use in the search for a prospective
The ratio of debt to total assets.
A form of business structure designed to combine the best of corporate
and partnership attributes into one entity.
A measure of how heavily mortgaged a property is and how likely the
owner is to default on his or her debts.
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.
The process of identifying and communicating with qualified prospects.
Individual who has been certified and designated by the American Cash
Flow Association to work with Diversified Cash Flow Specialists.
A written instrument that creates a lien by pledging real property as
security for a debt.
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.
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
A common form of joint ownership of a business.
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.)
The person, company, or government responsible for making payments on
an income stream.
Any part of a payment stream that is less than the full amount due.
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.
A group or package of income streams of the same type.
Owed to a private individual or business rather than to a bank or other
and loss statement:
A financial statement that shows a historical record of a business'
income and expenses.
A written promise to pay a specified amount to a specified party over
a certain period of time.
A legal proceeding in court to seize property (other than real estate)
given as security for a debt that is in default.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.
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).
The length of time payments have been made on a note or other debt instrument.Secondary
The marketplace where individuals and businesses can sell privately
held income streams to funding sources for cash.
The bundling and resale of debt instruments to investors; permitted
only for parties licensed and regulated by the SEC.
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.
The person or company that is holding a debt instrument and wants to
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.
A business owned and operated by an individual.
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.
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.
Personal property other than real estate, such as cars, boats, or other
value of money:
Concept that addresses the way the value of money changes over a period
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
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.
An insurance policy that insures a party against loss due to a defective
A spreadsheet that lists all loans in a portfolio and their payment
schedule. Usually required for a portfolio transaction.
Commercial Code (UCC):
Standardized set of guidelines protected by law that set down how business
transactions must be conducted.
A lease or note that has had few, if any, payments made.