Lenders Funding, LLC prides itself on being able to structure a participation to fit the needs of every Lead. Here is a representative listing of the various types and how then might be used by a Lead.

TYPES OF PARTICIPATIONS

 

Pari Passu

This is the most common form. We purchase a percentage interest in your transaction, which can be as low as you wish, and as high as 75% of your employed funds. The percent can be changed by you at any time, giving you great flexibility in managing risk and capital. We settle up weekly, bi-weekly or monthly, depending on the volatility of the transaction.

Fixed Dollar Amount

Our percentage in the deal fluctuates, but our dollars remain constant. This obviates the need for periodic settlement between us, simplifying administration.

Last-In-First Out

Assuming your deal with your debtor is capped at $4 million, but your concentration limitation is $3 million per debtor. We serve as the "shock absorber", participating in any amount by which the outstanding funds exceeds $3 million. In this way, you may accept larger deals than you concentration limits would allow, and you are always assured of maximum employed funds.

Share in All Fees

Whatever you earn we earn, prorated for our share in the transaction.

Over-ride

You earn more than we do, since you are doing all the work. Typically, we would allow you a 10% override, meaning that if you earn 36%, we earn 90% of 36% or 32.4%.

Fixed Compensation

We earn an agreed to percentage on our employed funds, irrespective of what you earn. This is easy to administer.

 

Termination Rights

You can terminate on short notice, but we cannot.

Standard of Care

This is negotiated. Usually you will set forth the audit and verification steps you intend to take, and so long as you follow them, you will have met the standard of care. In addition you will be held to the same standard of care as (i) you follow in other deals, or (ii) a reasonable and prudent Lead would follow.