1. Q: What is causing the current delay in funding the loans?
A: Heritage does not fund loans. However, in the origination of real property commercial promissory notes, there are a number of simultaneous challenges the company has faced in order to be in its current position. First, each request from a customer requires that their individual business plan be packaged into the BCLOC. The BCLOC is a new product with a new process. With this has come a learning curve resulting in significant challenges and the additional workload of assisting applicants who have submitted business plans that required more information gathering in addition to explaining the product and process. Second, the BCLOC represents a paradigm shift from traditional commercial lending philosophy that requires time and effort to gain the trust, acclamation and comfort of investors involved with a funding source. Lastly, the time necessary to assist applicants with submitting full applications caused the seasoning of business plans and the expiration of purchase contracts they were negotiating under their business plans.
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