Time Value of Money

This is the most important concept to understand what Rapid Funding does. We purchase ANY future cash flow stream, whether it is a seller financed real estate note, commercial accounts receivable, lottery payments or even advances on life insurance policies (for the terminally ill)! These types of income streams have no real current market value unless there is someone willing to take on the risk of default and give you your money NOW! Banks do not do these types of transactions and will not lend on them. Most private investors want equity in your company to take on these risks. So where is one to go when he/she has an income stream to sell? .....................                                       

      

Rapid Funding will buy these and the other sixty types of income streams at their NET PRESENT MARKET VALUE, or in today's dollars. Net present value is a technical way of saying that a dollar is not worth in the future what it is worth today. Inflation, interest rates, market and economic conditions, risk and other factors reduce the value of money instruments over time. What Rapid Funding does is compute the ACTUAL value of your cash flow stream in today's dollars, and give you that amount of money (now you have NO risk) TODAY so you can use it in any fashion you desire. You can spend it on education, a new home or car or even re-invest the money in another cash flow stream! What you do with the proceeds is totally up to you with NO restrictions! A simple example of the time value of money is below:

Original Principal Balance on Note           $200,000
Rate: 8%      Term: 10 yrs
Current Payment Received                         $2,643
Current Principal Balance                        $178,847

Present Value of Note at 12% Discount    $166,586


In the above example, you have a note paying you $2,643 per month for the next 100 months OR you can sell the note NOW for $166,586. The discount of $12,261 is nothing more than the net fair market value of the note.

What you get:

» A check for $166,586
» Peace of mind, no worrying about default
» Freedom to use or invest your money as you wish!

What Rapid Funding gets:


» A debt instrument with a reasonable rate of return
» Assumes collection responsibilities AND all risk of loss!