How much will all this cost me?

You ask, “How much will all this cost me?” From $3,800.00 to $14,450.00 to open the doors of your new business.

I will charge you $3,800.00 for setting up all of your Bookkeeping, Accounting, and Auditing accounts in the big IBM and also in an off-premisis Server for security.  Your Client accounting, Investor accounting, Field Agent accounting, Guarentor accounting, and the accounting for your record maintenance and bussiness analysis.  These accounts are set up and maintained completely seperate from all the other accounts that these computers maintain.

This start up cost depends on how much of the work you do yourself and how much you ask me to do.  I will show you how if you want to do any part of this work yourself.

I will customize all of the contracts, forms, instructions, and other documents, for $1,797.00, or I will provide your with generic copies of these documents, attached to an E-Mail, over the internet, free of any charge, and you can customize them yourself.

This is not a "one shoe fits all" program.  You and I will discuss at length how you want to run your Finance Company, I will make recomendations based upon these discussions, then together we will choose the options, modifications, changes, additions and/or deletions that you want made, to develope the Finance Company the way you want it.

Do you want me to set your Finance Company up with a full blown "C" corporation?

 You can choose to run your business as an individual in your name, as a DBA, or as a corporation.   If you ask me to set you up with a full blown "C" corporation, I can still do that for $1,300.00.

Another example; Do you want me to build a website for your Finance Comapany and put it on a server?

You ask, how can it be so low cost to start up?   Obviously this is less than starting any very small business that has any infrastructure? 

Consider this. You do not have to build a "Home Office".   I have already built the Home Office for you.

With a good computer in your spare room that is on the net, connected to the computers that I have already programed, you have the infrastructure for your Finance Company already in place.


With these accounts all in place, and your desktop on the net tied into this big IBM, you are ready to "open your doors" as a finance company.

A Finance Company with no Home Office Employees to supervise or pay and no office to support.


Seed Money.

For the capital to start providing Inventory, Materials, Equipment, or Supplies for small businesses, you can either use your own seed money, or bring in investors to provide that seed money.


The amount of money that you put on the street determines how much income you will be able to put in your pocket.   Your cost for all of the Home Office Services is based on the Stocking Fees you collect from the money that you have on the street.  No income, no cost.  Small income, small cost.

The Details;

If you are interested in the details of these costs, read on.   Otherwise, call me and we will get started.

First, we will talk about the day to day costs of running a finance company, and then we will talk about the cost of setting you up in the Finance Company business.

The primary factor which controls the cost of all this Home Office Support is how much money you have on the street, and the total money on the street for all of the Virtual Finance Companies being provided with Home Office Support by the big IBM.


 I have programed the computers so that I, meaning MIF, will personally be absorbing all of the costs of operations associated with not having a total in excess of $1,000,000.00 on the street for all of the Virtual Finance Companies being supported by the Home Office IBM that is maintaining yor accounts.

The costs of any one individual account associated with having a small amount of money on the street has been given careful consideration. 

It costs just as much for me to maintain an account with only $1.00 on the street, with one Client, as it does to maintain an account with $100,000.00 on the street, with only one Client.  This scenario, one Client with $100,000.00 on the street is highly unlikely; however I have used this as an illustration to make a point.


Your cost of operation for the Home Office Support will be between 0.16100 and 0.21000, times the daily Stocking Fees you collect from your Clients.   

Let me see you try to beat that.

 At $250,000.00, or more, on the street, you have reached the point where I can break even at 0.16100 times the Stocking Fee that you take in each day.

 Above $250,000.00 on the street, I will begin to show a return on my capital investment.

If you only have $10,000.00 on the street, your Home Office cost will be 0.20800 times the Stocking Fees you collect from your Clients.

The secondary factor in the finance company business is of course inflation, or more properly stated, the loss of value of the dollar.

The finance company puts out money that is worth $1.00 and gets paid back with a dollar that is now only worth 75 cents.  This loss of value of the currently used currency must be considered.

Our method of operation, being small amounts of money for very short periods of time mitigates this problem, however, dispite what the politicians try to sell the general public, every minute of every day, as the government prints more money to pay it's bills and puts that money into circulation the value of the dollar is depreciating.

Therefore: Your Clients daily Stocking Fee is calculated by the computers using an algorithm that takes as part of the calculation, the LIBOR or CPI.  This, although it is only pennies on a daily basis, is recovered for you by making sure that the daily Stocking Fee makes up the difference between the value of the dollar yesterday and the value of the dollar today.

  The computers will charge your Clients a Stocking Fee based upon The London Interbank Overnight Rate* or the Consumer Price Index.

 *London Inter-Bank Offer Rate.  The interest rate that the banks charge each other for loans.  This rate is applicable to the short-term international interbank market.  This market allows banks with liquidity requirements to borrow quickly from other banks with surpluses, enabling banks to avoid holding excessively large amounts of their asset base as liquid assets. The LIBOR is officially fixed once a day by a small group of large London banks, but the rate changes throughout the day.

This LIBOR is the best measure of the value of currency.  The value of currency is the reciprocal of inflation.

Therefore:  Because  the value of currency is factored into the Stocking Fee, your Cost of Operations for the Home Office, which is based upon that Stocking Fee remains stable even with inflation.


That Home Office Services support, plus the cost of your cell phone and home computer is your entire administrative overhead.


Our business plan will result in you, the owner, or someone you hire to do the liaison work, devoting about three hours per week for every $100,000 you put out on the street.  That is a gross income of about $2,100 per week, per $100,000.00, with a net return of up to $1,722 per week during the first stage.  [We will discuss the exponential growth later]


A Finance Company with no Home Office Employees to supervise or pay and no office to support.

 I did it.  You can do it.  When I started this new kind of Finance Company and only had $50,000.00 (32 Clients) on the street, and I was doing all the work, it brought me in $1,050.00 per week gross with a net of only $693.00 per week to spend for whatever.  That is a Home Office Support cost of 0.3400 of Stocking Fees received.


With the new computer program which I have recently re-written the net is $829.50 (without the exponential compounding).  Home office cost under these same circumstances can now be as low as 0.21000, plus a cell phone and home computer, leaving a net of $829.50.00 per week on that same $50,000.00.



Now, The Start-up Costs.


The primary problem with starting a small Finance Company is that, until now, it has been as costly to meet all of the startup requirements, legal and otherwise, and provide for the main office services for a small Finance Company as it is to provide the same start up and administrative services for a very large Finance company.


I have been running my own Finance Companies for years.  Merchant Inventory Financing Inc. has worked through all of these requirements, developed the algorithms and written the code so the computers can do all of the accounting and record keeping, and can therefore provide these services to other people who want to own a Finance Company.


The Set Up Cost for a Virtual Finance Company varies from $3,800.00, if you do some of the work yourself using our instructions and council, to $25,752.40 if we send someone to your offices  to do it all for you.


There are some things that would be better done by us and there are many things that you could do easily as well as we can.


I would suggest a breakdown of tasks that would range from $3,800.00 to $14,450.00.