A method and a Financial Product providing for Banks and other large
Finance Companies (Intermediaries) to market and fund the Financial
Product to its Customers (Customers) and potential Customers, whereby the
entire Financial Product processes are administered by a contracted
Finance Company (Contractor) that possess loan, leasing and/or factoring
specialty expertise that the Intermediary does not have or cannot
duplicate cost effectively. The Contractor will indemnify and/or insure
the Intermediary from loss of principle and interest, thereby eliminating
all risk to the Intermediary, or alternatively the Contractor will
indemnify the Intermediary, and further guarantee the indemnification
through an insurance company in the form of a performance bond, or
another third party in the form of a put option. In a further alternative
the indemnification may be entirely in the form of a performance bond or
put option. Since the Intermediary provides money for the Financial
Product, the cost will be in most cases lower than the cost of money the
Contractor can provide directly. The Contractor is able to drastically
reduce its marketing costs as volume gets funneled in from its customer
Intermediaries. The Customer benefits from having easier access to the
various Financial Products and a lower price due to this process. The
Intermediary can now serve its customers better, employ funds more
efficiently, earn fees for providing marketing services benefitting the
Contractor, all while completely eliminating the risk of loss on the
contracted Financial Products.