Plus, money is worth less in the future. It's the concept of "time value of money" that tells us that $1.00 today is worth a lot more than $1.00 10 years from now. Exactly how much more depends on the fluctuations in the value of the dollar as well as inflation and other factors. A seller of an income stream may accept a lesser amount than the total amount of the payments due to him in exchange for cash now. But because of the time value of money, he may actually save money in the long run, especially if he chooses to invest the cash.

Buyers of income streams benefit from a high rate of return on their investment. Plus, since these Funding Sources are buying notes instead of tangible items, they have no physical maintenance, management, or upkeep to worry about (as in the case of real estate purchases).

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