OK. You sold your car. That was great. But, now you are in month four and you need some cash. What to do? Post your Note on iSellerFINANCE’s Note Re-sale Auction page. It’s easy. You simply supply the Note principal amount, the original term (in the case of your auto loan, it was 24 months), the remaining term (now, it’s 21 months) and the interest rate (your auto loan was at 10%). By clicking on your note, potential buyers will be able to see the borrower’s (now, the car owner) blended FICO credit score and all of the demographic information he supplied and will be able to evaluate his credit-worthiness and assess risk. Once a potential buyer determines that he wants to invest by buying your note, he makes an offer. The original note was for $5,000. You have received $692.16 from the buyer so far (3 months x $230.72) and the note is now worth $4,307.84. A potential investor offers $3,000 for the note. You counter at $3,500. He agrees. You both sign a purchase contract and you transfer title to the investor. Along with title, the new investor also receives the remaining payment schedule and automatically becomes the payment repository. You get a cash infusion of $3,500. The new investor gets a $4,307.84 note with interest at 10% for $3,500. Another win-win at iSellerFINANCE!
December 16, 2011
I Don’t Want to be a Bank Anymore!
By Steve King
About Steve King
iPeopleFINANCE™ Chief Operating Officer. Former CEO of Endymion Systems, Inc. a $36m Information Systems Services company. Co-founder of the Cambridge Systems Group, the creator of ACF2, the leading IBM Mainframe Data Center Security product; acquired by Computer Associates. IBM, seeCommerce, marchFIRST, Connectandsell alumni. UC Berkeley alumni. View all posts by Steve King
This entry was posted on Friday, December 16th, 2011 at 10:20 am and tagged with Buyer, Credit risk, Credit score, Investor, Loan, Mortgage loan, Promissory note, Real estate and posted in Credit, Finance, Lending, Occupy Wall Street, Social Finance, Social Lending, Social Media. You can follow any responses to this entry through the RSS 2.0 feed.
2 responses to “I Don’t Want to be a Bank Anymore!”