Business
Plan
For
JWA
Capital
Holdings
Executive
Summary
JWA
Capital
Holdings
is
in
the
business
of
acquiring
charged
off
credit
card
debt
at
an
extreme
discount
and
then
collecting
those
assets
by
placing
the
portfolios
with
extraordinarily
qualified
third
party
collection
agencies.
Not
just
any
agencies,
but
ones
that
are
committed
to
helping
people
by
treating
debtors
with
respect
and
giving
them
new
hope.
JWA
Capital
Holdings
is
a
new
start
up
business
and
is
seeking
initial
financing
in
the
amount
of
$20,000.
JWA
Capital
Holdings
will
only
seek
additional
financing
after
repayment
of
the
initial
financing
and
performance
satisfactory
to
the
lender.
The
loan
proceeds
will
be
used
solely
to
acquire
asset
pools
and
for
third
party
professional
fees.
No
loan
proceeds
will
be
used
for
salaries.
The
purchase
and
collection
of
charged
off
debt
is
not
a
new
industry
–
nor
is
it
a
small
one.
The
industry
is
comprised
of
large
public
and
private
companies
and
many
smaller
companies.
Today,
and
for
the
next
three
to
five
years,
there
is
a
vast
oversupply
of
charged
off
debt
available
for
purchase
due
to
the
recession
and
very
high
rates
of
charge
offs
at
the
credit
card
banks.
This
excess
supply
allows
a
tremendous
opportunity
for
a
new
firm,
like
JWA
Capital
Holdings,
to
purchase
these
assets
efficiently
and
at
a
steeply
discounted
price.
JWA
Capital
Holdings
is
positioned
to
capitalize
on
this
opportunity
through
the
buying
power
that
is
a
benefit
of
its
membership
in
Success
Support
System.
JWA
Capital
Holdings
expects
to
achieve
above
average
collection
results
by
the
selection
of
collection
agencies
who
utilize
a
unique
strategy
for
working
with
consumers.
The
Applied
Psychology
strategy
is
unlike
the
typical
“confrontation”
strategy
used
by
most
collection
agencies,
it
is
one
that
treats
consumers
with
respect.
JWA
Capital
Holdings
has
learned
the
strategy
under
the
guidance
of
William
R.
Bartmann,
the
person
who
developed
it
and,
at
the
same
time,
built
the
largest
and
most
successful
collection
agency
in
the
nation.
The
principal
of
JWA
Capital
Holdings
is
Rev.
Jim
Anderson.
He
is
an
experienced
small
business
owner
and
will
be
“hands-‐on”
in
the
business
working
closely
with
Bill
Bartmann’s
collection
agency.
Jim
is
highly
committed
to
helping
people
in
financial
distress.
JWA
Capital
Holdings
intends
that,
after
payment
of
collection
costs,
all
cash
flow
from
collections
will
be
used
to
retire
the
debt
from
the
initial
financing.
Consequently,
the
loan
will
be
repaid
very
quickly.
The
goal
of
this
financing
strategy
is
to
demonstrate
to
the
lender
that
JWA
Capital
Holdings’
business
model
produces
both
large
profit
margins
and
a
cash
flow
that
is
front-‐loaded,
illustrating
that
the
lender’s
risk
is
minimized.
Only
after
the
loan
is
repaid
will
JWA
Capital
Holdings
seek
additional
financing
based
on
the
established
track
record.
2
Table
of
Contents
Executive
Summary
2
Company
Background
4
Service
Description
6
Market
Analysis
8
Operating
Strategy
11
Management
13
Operations
22
Funding
23
References
24
3
Company
Background
Name
The
name
of
the
Company
is
JWA
Capital
Holdings
LLC.
Nature
of
Business
JWA
Capital
Holdings
is
in
the
business
of
acquiring
charged
off
credit
card
debt
at
a
significantly
discounted
price
and
collecting
those
assets
by
means
of
third
party
collection
agencies.
History
of
Business
JWA
Capital
Holdings
is
a
start-‐up
company.
The
principal,
Rev.
Jim
Anderson,
is
the
primary
force
behind
this
company
and
have
identified
a
unique
opportunity
to
capitalize
on
an
avalanche
of
charged
off
credit
card
loans
coming
out
of
the
major
banks
over
the
next
three
to
five
years
and
help
people
at
the
same
time.
The
existing
debt
buying
industry
is
not
big
enough
to
accommodate
this
expected
volume
nor
can
the
existing
industry
expand
rapidly
enough
to
accommodate
the
volume;
thereby
offering
a
unique
opportunity
to
profit
on
this
excess
supply
over
industry
capacity.
Stage
of
Development
JWA
Capital
Holdings
is
a
start-‐up
company.
All
collections
of
the
purchased
assets
will
be
contracted
to
existing
reputable
and
successful
debt
collection
agencies
on
a
contingency
fee
basis.
The
selected
agencies
are
staffed
by
efficient
and
experienced
personnel.
Consequently,
JWA
Capital
Holdings
will
not
need
to
incur
the
start
up
costs
of
building
a
collection
platform
and
the
corresponding
ongoing
operational
expenses.
Unique
Features
of
the
Business
There
is
a
tremendous
mismatch
between
the
growing
availability
of
charged
off
loans
and
the
diminished
capacity
of
the
industry
that
will
allow
extraordinary
opportunities
to
carve
out
a
very
profitable
niche.
The
over-‐supply
of
charged
off
loans
has
driven
down
the
acquisition
cost
and
thus
has
created
an
unusual
and
highly
profitable
economic
opportunity1.
Even
though
market
factors
have
driven
down
the
purchase
price
of
these
assets
the
profit
margin
between
cost
and
recovery
has
remained
the
same
at
as
much
as
three
to
one.
1
In
December
2006
the
average
price
of
fresh
charged
off
credit
card
loans
peaked
at
13.5
cents
on
the
dollar
of
face
amount.
In
December
2009
the
average
price
of
fresh
credit
card
debt
–
accounts
that
are
180
days
past
due—was
4
cents
on
the
dollar
of
face
amount.
(Source:
The
Nilson
Report
–
April
2010).
In
September
2010
the
average
price
of
fresh
charged
off
credit
card
loans
was
5
to
7
cents
on
the
dollar
of
face
amount
(Source:
Success
Support
System).
4
Unique
Opportunity
Strategically,
an
outsourcing
approach
with
the
third
party
collection
agency
will
allow
JWA
Capital
Holdings
to
begin
operations
much
faster
and
at
minimum
risk
when
compared
to
the
challenge
of
quickly
building
a
collection
function.
It
is
important
to
note
that
JWA
Capital
Holdings
always
has
the
option
to
build
an
internal
collection
capability.
5
Service
Description
JWA
Capital
Holdings
purchases
charged
off
credit
card
loans
and
collects
on
those
loans
from
the
original
debtors
through
a
third
party
collection
agency.
Through
mail
and
telephony,
the
selected
collection
agency,
or
agencies,
contacts
the
debtor
and
negotiates
a
discounted
cash
settlement
or
a
cash
payment
plan
that
is
affordable
to
the
consumer.
Since
these
charged
off
loans
are
purchased
at
an
extreme
discount,
the
profits
JWA
Capital
Holdings
makes
is
the
difference
between
the
purchase
price
and
the
amount
paid
by
the
debtor,
less
operating
and
financing
costs.
The
acquisition
and
collection
of
charged
off
credit
card
debt
is
a
big
business2.
During
2009,
the
ten
largest
debt
alone
buyers
purchased
almost
$50
billion
face
value
of
charged
off
credit
card
debt
directly
from
banks.
Further,
there
are
a
large
number
of
companies
devoted
solely
to
the
collection
of
distressed
debts
but
do
not
purchase
the
assets
for
their
own
portfolio3.
The
debt
buying
industry
has
a
high
rate
of
revenue
growth,
is
highly
profitable,
has
low
barriers
to
entry
and
is
one
of
the
most
attractive
segments
of
the
Asset
Recovery
Management
industry4.
The
industry
has
achieved
significant
recognition
as
a
good
investment
vehicle.
The
major
companies
not
only
purchase
very
large
quantities
of
charged
off
credit
card
debt
directly
from
major
banks,
but
they
are
financed
by
lending
syndicates
headed
by
these
major
banks5.
The
unique
market
opportunity
for
JWA
Capital
Holdings
is
to
be
able
to
readily
purchase
these
assets
because
the
supply
exceeds
the
capacity
of
the
industry6
and
to
acquire
the
assets
at
prices
that
allow
large
profit
margins
and
rapid
return
of
the
capital
invested.
Each
loan
pool
is
reviewed
and
evaluated
for
its
estimated
collectability.
The
bid
submitted
will
not
be
greater
than
one-‐third
of
the
total
estimated
cash
recovery.
This
allows
a
margin
large
enough
to
cover
the
asset
acquisition
cost,
collection
cost,
financing
cost,
reserve
contingency
and
a
large
profit.
Allocation
of
the
gross
cash
recovered
is
projected
to
be
one-‐third
for
recovery
of
acquisition
cost,
one-‐third
for
collection
cost
and
financing
cost,
and
one-‐third
for
profit.
2
Major
debt
buyer
companies
are
Sherman
Financial
(a
private
company),
Encore
Capital
Group
(publically
traded),
Zenith
Acquisitions
(owned
by
an
insurance
company),
Portfolio
Recovery
Associates
(publically
traded),
Unifund
CCR
Partners
(private)
and
Asset
Acceptance
Corp.
(a
NASDAQ
listed
public
company).
Source:
The
Nilson
Report
–
April
2010.
3
ACA
International
(the
collection
agency
trade
organization)
lists
more
than
5,500
collection
agency
members
in
the
US.
4
The
7th
edition
of
The
Kaulkin
Report
reported
that
debt
buyer
revenues
were
growing
at
an
annual
rate
of
11%
and
projected
industry
revenues
would
be
$6.2
billion
in
2011.
The
report
further
stated
that
the
barriers
to
entry
and
profit
potential
in
the
debt
buyer
market
make
it
one
of
the
most
attractive
parts
of
the
ARM
industry.
Source:
Kaulkin
Ginsberg
Company.
5
JP
Morgan
Chase
administers
a
$100
million
revolving
credit
facility
and
a
$150
million
term
loan
for
Asset
Acceptance
Capital
Corp.
JP
Morgan
Chase
administers
a
$327.5
million
revolving
credit
facility
for
Encore
Capital
Group.
Portfolio
Recovery
Associates
has
a
$365
million
revolving
credit
facility
from
a
group
of
banks
including
Bank
of
America,
Wachovia
Bank,
RBC
Centura,
SunTrust
and
JP
Morgan
Chase.
NCO
Group
has
a
$569
million
term
loan
and
$100
million
revolving
loan
administered
by
Morgan
Stanley.
Source:
National
Consumer
Law
Center.
6
In
2006,
the
volume
of
charged
off
credit
card
was
$31
billion
and
the
charge
off
volume
for
2009
was
$97
billion,
representing
a
213%
increase
in
four
years.
For
2010
the
charge
off
rate
projected
by
Moody’s
is
13%
and
would
represent
$117
billion
of
credit
card
charge
offs.
The
debt
purchaser
industry
is
not
capable
of
expanding
to
a
size
that
will
accommodate
all
the
available
supply.
Source:
The
Nilson
Report,
Federal
Reserve
Bank
and
Moody’s
Investor
Services.
6
JWA
Capital
Holdings
will
acquire
these
charged
off
credit
card
assets
by
submitting
bids
to
sellers,
and
brokers
representing
sellers,
for
the
purchase
of
portfolios
of
loans.
Once
a
pool
of
loans
is
acquired
it
will
be
placed
for
collection
with
a
third
party
collection
agency
which
then
collects
the
accounts
for
a
contingency
fee.
7
Market
Analysis
The
market
for
the
service
offered
by
JWA
Capital
Holdings
is
highly
unusual
because
of
the
structure
of
the
industry
and
the
business.
There
are
no
“customers”
to
be
marketed
to
in
any
traditional
sense.
Consumer-‐debtors
are
“acquired”
when
the
charged
off
accounts
are
purchased.
The
success
of
the
Company
is
dependent
on
the
ability
to
acquire
assets
at
a
fraction
of
the
estimated
cash
recovery
value
of
the
asset
portfolios.
Over
the
past
three
years
there
has
been
a
tremendous
increase
in
the
amount
of
charged
off
credit
cards.
This
trend
will
continue
for
the
at
least
the
next
three
to
five
years.
The
average
American
household
is
drowning
in
credit
card
debt7.
Only
one
in
six
households
can
pay
only
the
minimum
balance
due
on
their
credit
cards
each
month.8
A
$10,000
credit
card
balance
at
18%
interest
paying
only
the
1.5%
minimum
balance
due
each
month
will
take
32
years
to
pay
off.
More
American
families
are
in
trouble
with
their
credit
cards.9
More
than
58
million
adults,
26%
of
Americans,
admit
to
not
paying
all
of
their
bills
by
the
due
date.10
When
finances
are
tight,
59%
of
people
will
pay
their
credit
card
bill
last.11
Two
out
of
ten
American
adults
have
or
have
had
a
credit
card
that
was
90
days
or
more
past
due.12
Banks
are
continuing
to
struggle
with
credit
quality.13
The
projected
credit
card
charge
off
rate
for
2010
is
13%
and
would
represent
$117
billion
of
charge
offs14.
The
previous
“high-‐water”
mark
for
credit
card
charge-‐offs
was
7.1%
-‐-‐
20
years
ago.15
There
is
a
direct
correlation
between
unemployment
and
the
credit
card
charge
off
rate16.
Credit
card
charge
offs
track
almost
exactly
the
unemployment
rate17
(as
noted
in
the
graph
following).
7
The
average
household
is
carrying
credit
card
debt
in
the
amount
of
$10,679.
Source:
The
Nilson
Report.
8
Source:
Experian
National
Score
Index
Study
9
In
2006,
the
volume
of
charged
off
credit
cards
was
$31
billion
(typical
of
the
preceding
10
year
period).
In
2007,
the
volume
increased
26%
to
$39
billion.
In
2008,
the
volume
was
$59
billion
(a
51%
increase
over
the
previous
year
and
26%
larger
than
the
previous
worst
year
ever).
Charge
off
volumes
in
2009
increased
64%
to
$97
billion
and
represented
a
212%
increase
in
only
four
years.
Source:
Nilson
Report
and
R.
K.
Hammer
&
Associates.
10
Source:
National
Foundation
for
Credit
Counseling
11
Source:
Creditcards.com
survey
12
Source:
Fair
Isaac
Company
13
For
August
2010,
Citibank
reported
charge
offs
at
the
rate
of
11.18%;
Bank
of
America
reported
11.72%;
JPMorgan
Chase
reported
8.18%;
and
Capital
One
reported
9.19%.
Source:
Associated
Press
and
Reuters
14
Source:
Moody’s
Investors
Services
15
Source:
Moody’s
Investors
Services
16
Between
January
2009
and
June
2010,
only
twice
has
the
variance
between
the
unemployment
rate
and
the
credit
card
charge
off
rate
been
significant.
The
first
was
in
2001
following
the
9/11
attacks
and
in
2005
when
tens
of
thousands
of
consumers
raced
to
file
bankruptcy
before
the
change
in
the
bankruptcy
code.
17
Source:
Comparison
of
Statistics
from
The
Federal
Reserve
Bank
and
the
US
Bureau
of
Labor
Statistics
8
With
8
million
jobs
lost
since
December
2007
and
the
unemployment
rate
at
its
highest
level
in
26
years18;
in
terms
of
job
losses
this
has
been
the
worst
recession
since
the
end
of
World
War
II
more
than
60
years
ago.19
Not
unexpectedly,
consumers
are
reeling
and
struggling
to
pay
the
full
balance
on
their
credit
card
debt.
The
number
of
people
unemployed
is
15
million.
Almost
half
are
considered
“long-‐term
unemployed”
and
have
been
unemployed
more
than
27
weeks.
The
number
of
persons
working
part-‐time
for
economic
reasons
(sometimes
referred
to
as
involuntary
part-‐time
workers)
is
8.9
million.
About
2.4
million
people
are
“marginally
attached
to
the
labor
force”
and
had
not
looked
for
work
in
the
past
30
days.
Another
1.1
million
people
are
“discouraged
workers”
who
have
given
up
looking
for
work
as
they
believe
no
jobs
are
available.20
Official
forecasts
call
for
unemployment
to
remain
in
the
9-‐10%
range
throughout
2010,
decline
to
8.2%
in
2012
and
continue
gradually
declining
to
5.5%
in
2016.21
Others,
less
optimistic,
predict
unemployment
to
continue
rising
to
a
peak
of
10.75%
in
mid-‐2011
before
beginning
a
slow
and
gradual
decline.22
Regardless
of
pessimism
or
optimism,
the
nation
is
clearly
facing
a
sustained
period
of
high
unemployment.
Because
there
is
such
a
remarkably
close
correlation
between
unemployment
and
the
credit
card
charge
off
rate,
it
can
only
be
expected
that
the
credit
card
banks
will
continue
to
suffer
large
losses.
18
Source:
Economic
Policy
Institute
19
Source:
Wall
Street
Journal
20
Source:
US
Department
of
Labor,
Bureau
of
Labor
Statistics
21
Source:
Council
of
Economic
Advisers
to
the
President
22
Source:
Goldman
Sachs
Economic
Forecast
9
Credit
card
lenders
are
trying
to
protect
themselves
by
tightening
credit
limits,
raising
standards,
and
closing
accounts.
They
have
also
been
slashing
rewards,
raising
interest
rates
and
increasing
fees
to
cushion
further
losses.
All
of
these
factors
demonstrate
a
steady
supply
of
freshly
charged
off
credit
cards
to
be
purchased
in
the
market.
There
has
never
been
a
better
opportunity
for
entrepreneurial
start-‐ups
to
launch
and
prosper.
Big
opportunities
do
not
come
around
often.
When
it’s
raining
gold,
reach
for
a
bucket,
not
a
thimble23.
It
is
JWA
Capital
Holdings’
plan
to
capitalize
on
this
opportunity.
23
Warren
Buffett,
Chairman,
Berkshire
Hathaway,
message
to
shareholders,
2010
shareholder’s
meeting.
10
Operating
Strategy
The
primary
operating
strategy
is
to
recover
value
from
the
purchased
assets.
JWA
Capital
Holdings
limits
itself,
by
choice,
to
the
purchase
of
fresh
credit
card
charge
offs.
This
niche
offers
the
optimum
combination
of
risk
and
reward.
In
today’s
market
it
is
common
that
fresh
credit
card
charge
offs
sell
for
five
to
seven
cents
on
the
dollar.24
Typically,
the
debt
buyer
targets
as
much
as
a
3-‐to-‐1
return;
which
means
that
the
debt
buyer
expects
to
recover
three
times
the
purchase
price.
The
ability
to
achieve
this
targeted
recovery
is
not
uncommon.
Achieving
this
targeted
return
requires
the
utilization
of
an
efficient
collection
platform
staffed
with
knowledgeable
employees
and
managers.
Debt
collection
is
to
a
certain
degree
complex
but
it
is
not
complicated.
The
complexity
results
from
the
necessity
of
complying
with
certain
laws
that
govern
all
collection
activities.
Compliance
with
these
statutes
is
actually
uncomplicated
and
readily
understood.
There
are
many
highly
qualified
collection
agencies
from
which
JWA
Capital
Holdings
will
choose25.
Third
party
collection
agencies
work
purely
on
a
contingency
fee
that
is
a
percentage
of
the
money
collected
from
debtors.
JWA
Capital
Holdings
has
chosen
to
utilize
third
party
collection
agencies
to
manage
and
collect
purchased
assets
in
order
to
avoid
the
start-‐up
and
infrastructure
cost
of
creating
its
own
collection
company26.
As
a
subscriber
to
Success
Support
System,
JWA
Capital
Holdings
is
afforded
the
opportunity
to
use
the
collection
vehicle
created
by
Bill
Bartmann.
Additionally,
JWA
Capital
Holdings
has
the
opportunity
to
acquire
asset
portfolios
alongside
Mr.
Bartmann
at
anticipated
volumes
and
prices
that
are
not
readily
available
in
today’s
market.27
A
key
element
of
success
for
JWA
Capital
Holdings
is
the
selection
of
an
agency
that
employs
an
Applied
Psychology
strategy
when
dealing
with
customer-‐debtors.
This
strategy
is
opposite
from
the
“confrontation”
strategy
used
by
most
collection
agencies.
The
Applied
Psychology
Model
was
first
pioneered
for
debt
collection
by
Bill
Bartmann
and
has
proven
to
be
the
most
effective
collection
technique
used
to
date.
Because
this
strategy
has
proven
results,
over
time,
it
will
result
in
the
highest
level
of
cash
collections
possible.
24
Source:
Credit
and
Collections
Risk
(an
affiliate
of
The
American
Banker)
and
Success
Support
System.
25
Tandem
will
use
only
agencies
that
have
been
evaluated
and
recommended
by
the
Success
Support
System.
26
The
industry
term
to
describe
this
business
model
is
“Passive
Debt
Buyer”
and
is
a
very
common
strategy
for
the
purchase
and
recovery
of
charged-‐off
credit
card
loans.
27
Bartmann
has
launched
a
new
collection
vehicle,
CFS
II,
Inc.
Bartmann’s
company
will
use
the
same
collection
philosophies
and
strategies
that
made
his
earlier
collection
agency,
Commercial
Financial
Services,
the
nation’s
most
successful
debt
buyer.
Commercial
Financial
Services
was
acknowledged
by
the
Nilson
Report,
the
most
authoritative
source
of
information
on
credit
cards,
as
the
“largest,
best
trained
and
most
profitable
collection
agency
in
the
world”.
With
3900
employees,
Bartmann
acquired
and
collected
4.5
million
charged
off
credit
card
accounts
representing
more
than
$15
billion
of
face
value.
11
The
Applied
Psychology
strategy
is
somewhat
different
than
the
more
traditional
confrontational
approach.
A
typical
collection
activity,
as
practiced
by
most
collection
agencies,
is
to
pursue
a
contentious
dialogue
with
consumers.
The
mindset
is
to
pound
on
the
debtor
repeatedly
until
eventually
the
customer
caves
in
and
offers
money
just
to
cause
the
collection
agent
to
go
away.
While
this
is
an
oversimplification
of
the
strategy,
it
is
a
fair
representation
of
the
common
behavior
of
collection
agencies.
The
Applied
Psychology
strategy
takes
a
different
approach
with
the
customer.
The
mantra
is
Polite
–
Professional
–
Persistent.
While
the
confrontational
strategy
is
more
like
war,
where
there
is
one
winner
and
one
loser,
the
Applied
Psychology
strategy
looks
for
a
win-‐win
solution
where
both
parties
feel
good
about
the
resolution.
Consumers
with
financial
problems
always
owe
many
creditors
at
once
and
they
are
faced
each
month
with
who
gets
paid
and
who
does
not.
With
the
Applied
Psychology
collection
strategy,
customers
react
differently
to
a
collector
who
is
not
abusing
them
and
who
is
sincerely
interested
in
the
problems
of
the
customer.
Knowing
that
customers
have
limited
resources
to
deal
with
their
problems,
the
Applied
Psychology
approach
is
more
likely
to
cause
the
customer
to
part
with
some
of
those
limited
resources
more
quickly.
This
becomes
the
value
proposition
of
the
strategy.
JWA
Capital
Holdings
is
strongly
committed
to
the
Applied
Psychology
strategy
for
dealing
with
customer-‐debtors
and
will
insist
that
each
employee
applies
that
standard
of
conduct.
Agencies
that
use
the
Applied
Psychology
strategy
are
not
as
adversely
impacted
by
economic
downturns.
For
example,
consumers
are
under
tremendous
stress
resulting
from
high
unemployment
and
high
delinquency
rates.
Conventional
wisdom
would
say
that
collecting
during
this
part
of
the
business
cycle
is
inordinately
more
difficult.
The
demonstrated
fact
is
that
regardless
of
the
business
cycle,
consumers
still
face
the
same
old
problem
–
they
owe
more
creditors
than
they
can
pay
but
they
can
pay
some
of
their
debts
if
the
debt
collector
is
patient
and
empathetic.
The
Applied
Psychology
strategy
focuses
on
how
to
become
one
of
the
few
creditors
that
are
paid
each
month.
Furthermore,
there
is
a
very
practical
benefit
of
the
Applied
Psychology’s
kinder,
gentler
approach:
Agencies
are
named
in
very
few
lawsuits
or
complaints
to
attorneys
general
or
the
Better
Business
Bureau
because
the
strategy
is
proactive
in
getting
debts
resolved28.
28
Collections
and
Credit
Risk
(an
American
Banker
publication),
The
Carrot
Versus
the
Stick
12
Management
Key
Management
As
a
passive
debt
buyer,
JWA
Capital
Holdings
has
built
a
management
team
well
qualified
to
recognize
opportunities
in
the
business
model
and
to
supervise
the
day-‐to-‐day
operations,
as
well
as
supervise
the
activities
of
the
third
party
collection
agencies.
JWA
Capital
Holdings
is
a
new
start-‐up
company.
The
principal,
Rev.
Jim
Anderson,
is
the
primary
force
behind
this
new
company
and
have
identified
this
unique
opportunity
to
capitalize
on
an
avalanche
of
charged
off
credit
card
loans
coming
out
of
the
major
banks
over
the
next
three
to
five
years.
Rev.
Jim
Anderson,
President
Jim,
as
President
and
Treasurer,
is
primarily
responsible
for
the
development
and
execution
of
the
business
development
strategy.
He
provides
the
entrepreneurial
skills
and
insights
to
identify
the
key
business
opportunities,
develop
the
plans
for
implementation
of
the
strategies,
and
negotiate
capital
and
debt
financing.
He
is
also
responsible
for
the
day-‐to-‐
day
operations.
He
is
responsible
for
the
supervision
and
coordination
with
the
third
party
collection
agency.
Jim
has
a
strong
entrepreneurial
background,
having
owned
and
operated
his
own
national
software
trainer
staffing
company
(Anderson
Network,
Inc.)
acting
as
CEO/COO/CFO,
brings
close
to
10
years
of
entrepreneurial
experience
from
that
company.
Jim
founded
Anderson
Network,
Inc.
in
1994
after
operating
it
as
a
sole
proprietorship
for
a
year.
His
people
skills
and
motivational
public
speaking
ability
brought
in
consistent
engagements
throughout
the
U.S.
as
a
certified
NetWare
and
Microsoft
trainer
himself.
He
quickly
identified
the
depth
of
the
market
and
grew
his
service
business
to
fill
the
specialized
market
niche.
Some
of
his
significant
accomplishments
in
building
Anderson
Network,
Inc.
are:
• Recruiting
on-‐staff
sales
and
contract
training
professionals
to
grow
the
company
to
a
$6
million
national
effort
deploying
over
200
independent
contractors.
• Creating
a
thorough
and
consistent
business
methodology
based
on
systemizing
training
to
provide
a
high-‐level
quality
service.
• Developing
a
performance
driven
team
of
21
on-‐site,
permanent
employees
with
a
highly
focused
vision
for
serving
the
technical
training
market.
• Responding
to
market
trends,
identified
from
extensive
primary
and
secondary
research
studies
and
continuously
refined
marketing
plans
and
the
business
model.
• Implementing
business
systems
to
track
and
account
for
incremental
job
and
travel
costs,
working
within
the
complex
and
ever
changing
IRS
regulations
to
resolve
and
manage
independent
contractor
relationships.
A
subsequent
IRS
audit
produced
a
clean,
exception
free,
report
as
a
result
of
his
careful
due
diligence.
• Identifying
growing
software
training
needs
that
led
to
an
expanded
product
training
portfolio
and
a
fast
growing
business.
13
• Building
a
reputation
as
one
of
the
top
two
providers
in
the
certified
software
trainer
niche,
nationwide.
Jim
has
also
served
as
an
independent
Certified
E-‐Myth
Consultant,
consulting
with
small
business
owners
like
him
to
take
them
through
Michael
Gerber’s
E-‐Myth
Mastery
program.
The
program
helps
small
business
owners
think
about
their
business
as
an
owner
and
build
a
franchise
prototype
of
the
business
so
it
can
operate
without
them.
Jim
has
also
been
committed
to
serving
in
Christian
ministry
for
many
years,
serving
on
worship
music
teams
and
as
the
worship
leader
for
various
churches.
As
early
as
1978,
he
served
as
a
worship
leader
for
the
U.S.
Army
Chapel
at
three
different
locations
on
Oahu,
Hawaii.
Since
then
has
led
worship
music
at
Belmont
Church
in
Nashville
Tennessee,
U.S.
Army
Chapel
at
Ft.
Devens
Massachusetts,
Beth
Ariel
Fellowship
in
Sherman
Oaks
California,
at
Mariners
Church
Passover
ministries
in
Newport
Beach
California,
Shuvah
Yisrael
Messianic
Fellowship
in
Irvine
California,
and
participated
in
music
ministries
at
various
venues
at
Saddleback
Church
in
Lake
Forest
California.
His
latest
engagement
was
the
primary
worship
leader
for
Living
Water
Community
Church
in
Rancho
Santa
Margarita,
CA.
In
recent
years
Jim
started
a
financial
ministry
at
Saddleback
Church
called
Financial
Peace
University,
a
video
driven
13-‐week
course
by
Dave
Ramsey
on
personal
financial
management,
which
has
produced
impressive
results
for
the
students
of
the
program
in
getting
out
of
debt
and
accumulating
savings.
It
has
also
grown
in
numbers
of
attendance
significantly.
Jim
has
become
increasingly
committed
to
ministering
to
those
in
financial
distress,
resulting
in
an
increasing
focus
in
his
ministry
efforts.
Jim
has
served
further
in
the
community
of
South
Orange
County
as
a
board
member
of
the
Entrepreneur
Organization
chapter
in
Orange
County
while
operating
Anderson
Network,
Inc.
Jim
holds
a
Masters
in
Religious
Studies
from
Southern
California
Seminary,
graduating
with
a
perfect
4.0
grade
average,
and
has
been
ordained
as
a
minister
by
the
Evangelical
Church
Alliance.
He
also
holds
a
Bachelors
of
Business
Administration
with
a
concentration
in
Finance
from
Belmont
University
in
Nashville,
Tennessee,
where
he
graduated
with
honors.
14
Organizational
Chart
The
initial
organizational
chart
reflects
the
start-‐up
nature
of
the
company:
Training,
Consulting
and
Support
Services
Rev.
Jim
Anderson
has
completed
Bill
Bartmann’s
Basic
Buying
Bad
Loans
Workshop
and
Bill
Bartmann’s
Advanced
Buying
Bad
Loans
Workshop.
Both
intensive
programs
offer
intricate
hands
on
training
activities
and
provide
knowledge
necessary
to
develop
the
business
planning,
secure
financing
and
begin
operations
as
a
debt
buyer.
Both
Bartmann
programs
emphasize
the
processes
and
importance
of
acquiring
the
proper
type
of
assets
at
a
price
that
allows
the
targeted
return.
JWA
Capital
Holdings
also
subscribes
to
Bill
Bartmann’s
Success
Support
System.
The
Success
Support
System
provides
comprehensive
support
in
a
broad
range
of
business
activities
but
most
especially
in
the
identification
and
pricing
of
potential
asset
portfolios
and
in
the
oversight
and
guidance
of
collection
activities.
The
Success
Support
System
has
helped
its
subscribers
acquire
more
than
521
portfolios
representing
$368
million
of
face
value29.
Success
Support
System
gives
29
Source:
Success
Support
System
15
JWA
Capital
Holdings
access
to
portfolio
purchase
opportunities
that
would
otherwise
not
be
available.
Additionally,
Success
Support
System
provides
JWA
Capital
Holdings
direct
access
to
CFS
II,
one
of
the
most
capable
collection
agencies
in
the
country.
The
Success
Support
System
will
be
especially
valuable
to
JWA
Capital
Holdings
for
expert
advice
and
guidance.
In
addition
to
guidance
for
portfolio
acquisition
and
the
selection
and
management
of
collection
agencies,
the
Success
Support
System
will
assist
with
regulatory
compliance,
licensing,
reporting
and
other
back
office
functions.
The
resources
available
through
the
Success
Support
System
are
individuals
with
extraordinarily
strong
backgrounds
in
banking,
debt
buying
and
collections.
Biographies
of
the
key
resources
follow
in
this
section.
W.
Wayne
Learned
Wayne
is
the
Chief
Learning
Officer
for
Success
Support
Systems.
His
title
describes
the
nature
of
his
responsibilities
–
development
of
curriculum
materials,
communications
materials
and
other
activities
focused
on
the
advancement
of
the
knowledge
and
skills
of
clients
to
be
successful
entrepreneurs
and
Debt
Buyers.
His
duties
include
the
Success
Support
System
mentoring
and
coaching
program.
He
provides
the
entrepreneurial
skills
and
insight
to
identify
key
business
opportunities,
develop
the
plans
for
implementation
of
the
strategies,
and
ensure
the
right
staff
skills
are
in
place
to
execute
the
business
plans.
He
is
a
member
of
the
Executive
Committee
and
Leader
of
the
Strategic
Planning
Committee.
Wayne
has
a
strong
entrepreneurial
background,
having
been
co-‐founder
of
two
start-‐up
financial
services
companies.
He
has
also
large
company
experience,
having
been
a
Senior
Executive
of
both
a
major
collection
agency
and
a
major
statewide
banking
organization.
During
his
tenure
at
the
collection
agency,
the
company
grew
from
20
employees
to
almost
4,000.
Wayne
was
responsible
for
the
development
and
implementation
of
the
infrastructure
and
strategic
planning
process.
His
extensive
banking
experience
includes
loan
origination
and
servicing,
and
responsibility
for
major
loans
and
project
developments.
He
has
close
ties
to
the
Federal
Deposit
Insurance
Corporation
and
the
Resolution
Trust
Corporation,
having
been
contracting
officer
for
various
service
contracts
for
the
FDIC
and
RTC.
Also,
he
worked
closely
with
the
RTC
through
receivership
and
conservatorship
of
a
major
financial
institution
and
was
selected
by
RTC
to
be
President
of
the
firm
during
the
asset
sale
process.
Wayne
is
politically
active
and
is
closely
involved
in
The
10,000
Helping
Hands
Organization,
a
non-‐
profit
organization
focused
on
legislative
action
to
reform
the
debt
collection
industry
and
to
toughen
enforcement
action
for
violations
of
the
Fair
Debt
Collection
Practices
Act.
Wayne
has
also
been
a
passionate
advocate
for
low-‐income
consumers
–
especially
the
unbanked.
He
has
worked
closely
with
community
organizations
and
government
officials
to
advance
consumer
16
protection.
Wayne
is
active
in
the
community.
He
is
a
past
Director
and
Officer
of
the
Oklahoma
Investment
Forum,
a
non-‐profit
economic
development
organization.
He
was
a
guest
lecturer
at
the
University
of
Tulsa
and
an
instructor
at
Tulsa
Community
College
where
he
taught
banking.
He
is
past
president
of
the
Credit
Counseling
Centers
of
Tulsa,
and
past
board
member
of
the
American
Red
Cross,
Metropolitan
Tulsa
Chamber
of
Commerce
and
the
Oklahoma
State
Chamber
of
Commerce.
He
is
an
Advisory
Board
Member
of
The
Oklahoma
Eagle,
an
African-‐American
newspaper.
Wayne
holds
a
BS
degree
from
Northeastern
State
University
and
has
completed
the
Financial
Institutions
Marketing
School
at
the
University
of
Virginia
and
the
Executive
Development
School
at
the
University
of
Oklahoma.
Bill
Bartmann
Bartmann
was
the
founder
and
CEO
of
Commercial
Financial
Services
(CFS),
a
highly
successful
debt
buyer.
Bartmann’s
company,
Commercial
Financial
Services
(CFS),
was
the
nation’s
largest
and
most
successful
debt
buyer.
CFS
was
acknowledged
by
the
Nilson
Report,
the
most
authoritative
source
for
information
on
credit
cards,
as
the
‘largest,
best
trained
and
most
profitable
collection
agency
in
the
world”.
CFS,
with
3900
employees,
acquired
and
collected
4.5
million
charged
off
credit
card
accounts
representing
more
than
$15
billion
of
face
value.
Bartmann
recently
launched
a
new
debt
collection
agency
in
anticipation
of
creating
a
collection
platform
that
will
significantly
outperform
others
in
the
industry.
JWA
Capital
Holdings
will
have
access
to
that
service
as
it
is
made
available
in
the
future.
Bartmann
is
an
author
and
has
written
two
national
and
international
best
sellers
on
the
topics
of
business,
finance
and
investing.
He
is
also
a
successful
speaker
on
motivational
and
business
topics
and
has
appeared
on
programs
with
New
York
City
Mayor
and
Presidential
Candidate
Rudy
Giuliani,
Secretary
of
State
and
military
leader
General
Colin
Powell,
and
Presidential
Candidate
and
Publisher
Steve
Forbes.
He
has
presented
his
program
to
more
than
400,000
people
and
is
a
frequent
media
spokesman
on
CNN,
ABC,
NBC,
CBS,
FOX,
CNBC,
Bloomberg,
Fortune,
Forbes
and
The
Wall
Street
Journal.
Bartmann
has
created
seven
successful
businesses
in
seven
different
industries;
including
CFS,
which
he
launched
from
his
kitchen
table
with
a
$13,000
loan.
He
has
been
named
National
Entrepreneur
of
the
Year
by
NASDAQ,
USA
Today,
Merrill
Lynch
and
the
Kauffman
Foundation.
His
companies
have
been
named
by
Inc.
Magazine
as
one
of
the
500
Fastest
Growing
Companies
in
America
-‐
four
years
in
a
row.
He
has
been
awarded
a
permanent
place
in
the
Smithsonian
Institute’s
Museum
of
American
History
and
awarded
the
American
Academy
of
Achievement's
Golden
Plate
Award
as
one
of
the
Outstanding
Achievers
of
the
20th
Century.
17
Stan
Beard
Stan,
also
at
Success
Support
Systems,
is
an
experienced
bi-‐lingual
business
executive
and
consultant,
with
a
record
of
success
in
diverse
and
progressively
responsible
positions
throughout
his
career,
including
management
consulting,
international
general
management,
strategic
business
development
and
sales
and
marketing.
He
is
a
certified
Business
Coach
and
recently
worked
with
a
leading
management-‐consulting
firm,
providing
business-‐consulting
services
to
small
and
medium
size
companies
that
resulted
in
improvement
of
profits,
enhancement
of
productivity,
maximization
of
efficiencies,
behavior
modification
and
organizational
development.
Stan
is
fluent
in
Spanish,
having
worked
and
lived
in
Latin
America
and
the
Caribbean.
David
Ayres
David
comes
to
Success
Support
Systems
with
15
years
of
credit
and
collections
experience.
David
was
a
very
successful
Senior
Account
Officer
for
CFS.
After
leaving
CFS,
he
worked
with
The
Money
Store
as
a
Loss
Mitigation
Supervisor
where
he
was
responsible
for
renegotiating
mortgage
loans
with
the
goal
of
helping
homeowners
keep
their
homes.
David’s
last
position
before
joining
our
team
was
with
HSBC
Bank
where
he
traveled
to
India
and
assisted
with
the
compliance
and
curriculum
development
for
the
bank’s
overseas
Call
Centers.
He
also
managed
several
collection
units
and
was
responsible
for
achieving
a
corporate
delinquency
rate
of
less
than
2%
on
an
average
monthly
basis.
David
has
a
Bachelors
of
Administration
degree
in
Business
Management.
Jason
Barry
Jason
has
an
extensive
finance
and
lending
background.
He
began
his
career
with
HSBC
Bank
as
a
loan
officer
and
then
as
manager
where
he
created
the
largest
western
branch
within
the
company
and
controlled
$65
million
of
assets.
Jason
later
moved
to
Countrywide
and
helped
build
their
business-‐to-‐business
division.
Later,
Jason
took
over
Phoenix
Division
at
GMAC
in
their
Ditech
division
when
he
created
the
most
profitable
team
at
Ditech
before
moving
into
an
Executive
role.
Jason
then
ventured
out
on
his
own
creating
three
companies
at
once.
He
created
a
Mortgage
company,
Real
Estate
Company
and
a
Finance
company.
Jason
later
sold
his
interest
in
those
companies
and
joined
Bartmann
Business
Institute
as
Director
of
Marketing.
Jason
Emmert
Jason
comes
to
Success
Support
Systems
with
over
10
years
experience
in
collections
and
credit
analysis.
He
joined
CFS
in
1998
as
a
Senior
Account
Officer
where
he
was
an
outstanding
performer
and
achieved
high
collection
goals.
After
CFS,
Jason
continued
his
career
in
credit
and
collection
by
working
at
First
Credit
Solutions
for
five
years.
His
most
recent
responsibility
was
with
Conoco-‐
Phillips
as
a
Lead
Credit
Analyst
where
he
spent
five
years
defining
and
developing
reporting
for
credit
decisions.
Jason
brings
an
invaluable
asset
to
the
Success
Support
System
as
a
Client
Service
Representative
analyzing
credit
and
pricing
scoring
models.
Jason
graduated
from
Northeastern
State
University
Magna
Cum
Laude,
with
a
major
in
finance
and
a
minor
in
marketing.
18
Jerry
Duke
Jerry
comes
to
Success
Support
System
with
many
years
of
small
business
and
finance
experience.
Jerry
began
his
career
in
the
Aerospace
and
Defense
industries.
As
President
and
CEO
of
his
own
company
for
many
years,
Jerry
successfully
built
his
manufacturing
business
and
employed
over
100
people.
Over
the
past
15
years
he
has
worked
within
the
lending
and
mortgage
business
as
a
finance
manager.
Experienced
in
loan
underwriting
and
his
expertise
as
a
mortgage
banker,
Jerry
brings
great
financial
knowledge
to
the
Success
Support
System.
Jessica
Allsop
Jessica
is
the
Chief
Operating
Officer
of
Bill
Bartmann
Enterprises
and
BBI.
Following
graduation
from
Baker
University,
Jessica
began
her
career
in
financial
management
as
Assistant
Manager
for
Neighborhood
Financial
Center,
a
multi-‐enterprise
organization
specializing
in
financial
services
for
low-‐income
individuals.
She
later
was
promoted
to
Manager
for
Neighborhood
Financial
and
continued
her
career
as
a
Senior
Negotiations
Officer
with
an
affiliated
company,
Debt
Discounters
of
America,
an
organization
that
provided
credit
counseling
services
and
representation
with
creditors.
After
leaving
Debt
Discounters,
Jessica
was
a
Loan
Origination
Officer
for
Ameriquest
Mortgage
Co.,
First
Omni
Mortgage
Co.,
and
later
a
Collection
Officer
for
Franklin
Collection
Company.
Jessica
then
joined
BBI
and
played
a
critical
role
in
the
development
and
growth
of
the
company
and
the
Buying
Bad
Loans
Workshop
series
to
become
the
national
leader
for
development
of
new
entrepreneurial
companies
capable
of
capitalizing
on
opportunities
presented
by
the
financial
crisis.
Kelly
Allen
Kelly
was
one
of
the
very
earliest
of
CFS
employees
and
had
the
opportunity
to
see
Bill’s
dream
become
a
reality.
She
has
over
20
years
of
credit
card
loan
collection
and
loss
mitigation
experience
with
different
types
of
loans.
Kelly
was
one
of
the
highest
performing
results
driven
Department
Managers
at
CFS
and
continued
her
career
in
the
mortgage
industry
with
Wachovia
Bank
and
EDG
International
as
an
Engineering
Project
Administrator.
Her
strong
interpersonal
skills
along
with
her
keen
analytical
and
problem
solving
ability
make
her
a
valuable
asset
to
the
BBI
team
where
she
is
a
Client
Sales
Supervisor.
Tony
Allen
Tony
comes
to
Success
Support
System
with
ten
years
of
financial
services
and
collections
experience.
Tony
began
his
career
with
CitiFinancial
Services
managing
loan
portfolios
as
large
as
$10
million.
Tony
transitioned
to
the
position
of
Vice
President
within
the
Chase
Retail
bank
network
where
he
also
received
his
licensing
as
an
investment
representative.
Tony
then
left
financial
services
to
become
a
partner
in
a
small
business
venture;
franchisee
for
two
different
restaurant
concepts
that
employed
as
many
as
250
people
in
three
states.
Experienced
in
sub-‐prime
loan
underwriting
and
as
a
small
business
owner,
Tony
brings
great
knowledge
to
our
Success
Support
System
clients.
19
Jay
Donovan
Jay
is
a
partner
at
Allen
Haight
&
Monaghan
LLP,
our
accounting
firm.
Jay
began
his
career
with
the
national
accounting
firm
of
KMG
Main
Hurdman
(now
part
of
KPMG
Peat
Marwick)
where
he
became
a
tax
manager
in
their
Orange
County
office.
He
later
joined
American
Express
Tax
&
Business
Services
in
Glendora,
California
as
a
Senior
Tax
Manager,
where
he
was
responsible
for
overseeing
all
aspects
of
client
service
and
business
related
matters
for
the
office.
He
subsequently
joined
a
local
CPA
firm
as
Senior
Tax
Manager,
in
charge
of
tax
department
oversight,
prior
to
joining
the
firm
of
Allen,
Haight
&
Monaghan,
LLP
in
2000.
Jay’s
experience
includes
tax
compliance
and
consulting
for
closely
held
entrepreneurial
businesses,
business
owners
and
high
net
worth
individual
clients.
He
is
involved
in
providing
comprehensive
tax
planning
to
increase
corporate
profits
and
individual
net
worth,
as
well
as
transactional
planning
to
minimize
taxes.
This
includes
optimization
of
tax
benefits
and
cash
flow,
tax
reduction
through
professional
representation
at
taxing
authority
negotiations
and
evaluation
of
tax-‐deferred
transactions
and
tax-‐free
corporate
restructurings.
Mike
Petersen
Mike
is
a
partner
in
our
law
firm,
Shulman
Hodges
&
Bastian
LLP.
Mike
heads
the
firm’s
transactional
department
and
is
officed
in
Foothill
Ranch,
California.
Mike
practices
transactional
and
corporate
matters
including
business
formation,
business
acquisition
and
disposition,
and
real
estate
and
personal
property
transactions.
Representative
transactions
include
restructuring
of
an
automobile
dealership
including
debt,
secured
by
personal
property,
sale
of
all
technology
and
personal
property
related
to
an
editable
printing,
disposition
of
a
chain
of
restaurants
and
the
asset
purchase
of
a
commercial
aircraft
and
security
company.
Mike
graduated
with
high
honors
from
the
University
of
Wisconsin
in
1974.
While
an
undergraduate
Mike
was
active
in
student
politics,
the
debate
team
and
was
a
founding
member
of
the
Historical
Discourse
Society.
Upon
graduation
Mike
entered
the
University
of
Minnesota
Law
School
where
he
graduated
cum
laude.
Mike
began
his
legal
career
in
Wisconsin
with
the
law
offices
of
Tommy
Thompson
who
served
as
Wisconsin’s
governor
for
many
years
and
served
as
Health
and
Human
Services
Secretary
for
President
Bush.
Mike
moved
to
corporate
practice
at
the
Prudential
Insurance
Company
of
America.
While
in
Chicago
Mike
was
the
attorney
responsible
for
all
legal
matters
associated
with
the
Prudential
Plaza
redevelopment,
including
a
new
64-‐story
office
tower
and
major
renovation
of
the
42-‐story
building.
He
also
completed
a
400
million
dollar
renovation
of
the
Chicago
Hilton
and
Towers
including
the
financing
of
both
the
real
property
and
the
hotel’s
extensive
personal
property.
Mike
moved
to
Prudential’s
corporate
office
in
New
Jersey
where
he
focused
on
east
coast
development
and
international
real
estate
acquisitions.
Mike
then
moved
to
California
to
serve
as
the
General
Counsel
for
Prudential
Real
Estate
Affiliates,
a
franchisor
of
real
estate
brokerage
operation.
Mike
left
Prudential
and
joined
the
dot.com
boom,
completing
the
C
round
for
NowDocs.com
Mike
was
General
Counsel
for
Newport
Federal,
where
he
was
responsible
for
in
excess
of
$130
million
in
California
real
estate
property
transactions
and
completed
over
$10
million
in
personal
property
loan
transactions
both
as
a
lender
and
as
a
borrower
including
jet
aircraft
financings.
20
Mike
is
active
in
the
Orange
County
Bar
Association
as
a
member
of
the
real
estate
and
corporate
sections.
Mike
has
spoken
at
the
America
Corporate
Counsel
Association
on
leasing
and
managing
outside
counsel.
21
Operations
Plan
Plant
and
Equipment
Initially,
JWA
Capital
Holdings
will
need
no
plant
and
equipment
and
Jim
will
work
out
of
his
home
office,
keeping
his
overhead
to
an
absolute
minimum.
Operations
Action
Plan
• JWA
Capital
Holdings
registers
with
Debt
Brokers
• Debt
Broker
advises
JWA
Capital
Holdings
when
a
portfolio
is
offered
for
sale
• JWA
Capital
Holdings
reviews
and
analyzes
the
portfolio
with
the
assistance
of
Success
Support
System
• JWA
Capital
Holdings
tenders
bid
to
the
Debt
Broker
via
email
or
fax
• Debt
Broker
notifies
JWA
Capital
Holdings
of
winning
bid
• JWA
Capital
Holdings
executes
closing
documents
and
wires
funds
to
Debt
Broker
• Debt
Broker
transfers
an
encrypted
electronic
version
of
the
debt
file
to
JWA
Capital
Holdings
• JWA
Capital
Holdings
forwards
the
encrypted
debt
file
to
the
collection
agency
reviewed
and
recommended
by
Success
Support
System
• Collection
agency
loads
the
new
accounts
into
their
system
and
begins
contacting
consumers
• JWA
Capital
Holdings
(with
assistance
from
Success
Support
System)
monitors
collection
agency
activity
to
ensure
that
collection
results
are
acceptable
22
Funding
Amount
Required
JWA
Capital
Holdings
is
seeking
initial
funding
in
the
amount
of
$20,000.
JWA
Capital
Holdings
is
not
asking
for
a
commitment
beyond
the
initial
$20,000
and
will
only
seek
additional
funding
after
satisfactory
performance.
Type
of
Financing
Sought
JWA
Capital
Holdings
is
seeking
a
structured
note
to
be
retired
at
an
accelerated
pace
from
the
proceeds
of
collections.
The
goal
of
this
financing
strategy
is
to
demonstrate
to
the
lender
that
JWA
Capital
Holdings’
business
model
produces
both
large
profit
margins
and
cash
flow
that
is
front-‐loaded
and
thus
illustrates
that
the
lender
risk
is
minimized.
Collection
proceeds
will
be
distributed
in
the
following
manner:
1. Payment
of
contracted
contingency
fee
to
the
third
party
collection
agency
2. Payment
of
third
party
professional
services
fees
3. 100%
of
the
remainder
to
the
lender
to
pay
interest
and
retire
principal
JWA
Capital
Holdings
intentionally
plans
that
debt
payments
will
be
accelerated
as
described
above.
JWA
Capital
Holdings
intends
that
the
outstanding
debt
be
reduced
as
quickly
as
possible.
Use
of
Proceeds
Loan
proceeds
will
be
used
solely
for
the
acquisition
of
asset
pools
and
third
party
professional
fees.
No
loan
proceeds
will
be
used
for
salaries.
23
References
Len
Shulman
Shulman
Hodges
&
Bastian
LLP
26632
Towne
Center
Dr.,
Suite
300
Foothill
Ranch,
CA
92610
949
340
3400
Chris
Goulard
Saddleback
Church
1
Saddleback
Way
Lake
Forest,
CA
92630
949
609
8000
Bill
Bartmann
Bill
Bartmann
Enterprises
8315
E.
111th
St.,
Suite
F
Bixby,
OK
74008
918
388
3328
24