All Forum Posts by: Nicholas Tortarolo

My topic involves medical sector financing and I was wondering if you could help me find information regarding how a bank assesses discount fees when purchasing portfolios. Is there a certain rate of return they shoot for? What is the average discount rate they apply when purchasing portfolios in the medical financing sector or equipment financing in general?

Thank you for the quick response. I have another question. If I receive the majority of the interest over the 1st year of payments holding the loan, will it be much less valuable given that when I sell it, much of the interest has already been received by me? Also, if I hold the loan for a year could I potentially get a better rate due to proof that the payments have been made on time for a full year? What I'm trying to figure out is when the best time to try and sell the loan would be.

Suppose I have $1,000,000 loaned to a dentist to finance his medical equipment (decent credit background). The payments are due monthly over 5 years (60 months). The monthly payment is $21,247.04 for the life of the loan. The present value of the profit is $125,895.66 so the total paid at maturity is $1,125,895.66.

If I would like to sell this stream of payments to a bank, what discount fee do you think they would charge at 60 months? At 48 months? At 36 months?

Please give any insight you may have.