LOANS AGAINST NOTES

[George Frye]

Has anybody ever heard of getting a loan or line of credit against the cash flow of a performing note. I know @Dave Van Horn once mentioned this as a way he grew his business but not much detail went into how. I would love to hear others ideas on how to this works and who are the right people to reach out to. Thanks for your time and answers.

[Jay Hinrichs]

technically that's called a hypothecation... you pledge the asset to the bank and they give you a loan against the collateral I have done it many times. its an advanced strategy and takes a good relationship with a commercial bank that understands your business and your financial situation very well... usually you will get 50% advance.. they will want current 3P appraisal etc ..

other than that you would need to try to talk private investors into it...