The time value of money basically means that money in your hand today is worth more than money in the future.  Inflation and risk concerns affect the value of payments in the future.

So, if you’re getting paid $500 a month for 30 years, the $500 payment you get today can buy more than the $500 you’ll get at the end of your note and this makes the payments closer to today worth more.

Another example is to think about how many loaves of bread you could buy with $10 twenty years ago. Now think about how many that same $10 will buy you today.  And in the future. 

Ask us how Partial Purchase options can help get you some cash now and the right to collect future payments.