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Stock Pick January 2008 **HCPC**

About Heritage Capital Credit Corporation Symbol: HCPC.PK


The Company was organized in 1994 for the purpose of starting a bank and initially it was a licensed lender and originated residential mortgage loans. In 2004, the company reverse merged into a public company and began to focus on facilitating financing for revenue generating commercial real estate.

The company is a holding company that operates through a subsidiary, Independent Capital Credit Corporation ("ICCC"), whose primary services include the BCLOC Program along with traditional financing for revenue producing commercial real estate loans.  ICCC facilitates financing in excess of $500,000.

Independent Capital Credit Corporation ("ICCC") prepares real property and commercial revenue producing assets for funding.  ICCC sells commercial mortgage loans in excess of $500,000 and makes the loans available to investors nationwide. 
ICCC uses unique software to underwrite all of its financing solutions.

Heritage Capital Credit Corporation Describes BCLOC

Heritage Capital Credit Corporation responded to questions at its Annual Shareholders’ Meeting held on October 18, 2007. The number one key question that continues to be asked is “What is the BCLOC and how does it work?”

To address this question and to fully describe the BCLOC in plain language, the following is a comparison of the BCLOC with other lender funding.

In this example, Jane Doe has a business plan and wishes to acquire a commercial asset project (an office building, shopping center, hotel, apartment building, etc.)—in this case an office building with a price tag of $10 million.

The Other Lender Route will necessitate finding a bank or other lender who qualifies her for a loan of perhaps 80% of the commercial asset project, with a down payment of 20% from Jane’s pocket. She will need the services of a real estate lawyer.

What can go wrong after funding? Jane could face default and lose her 20% down payment along with her asset because of insufficient income from the project over several months’ time or because of problems with her business plan, and may need to secure a second mortgage to secure cash flow for the project and to make payments on the first loan. Even so, bankruptcy is always a possibility.

The Heritage BCLOC route will never involve bankruptcy and does not require Jane to post 20% down. Rough spots in cash flow from tenants need not sink Jane’s business plan. Here’s how it works:

Jane’s part: Jane provides Heritage with a letter of agreement showing she has worked out details of the purchase with the seller. Jane pays whatever legal fees, etc., are involved with this part of the process. She also provides Heritage with a business plan for operation of the asset and a signed agreement to acquire the commercial asset project. She will need the services of a securities lawyer with experience in real estate.

The role of Heritage: Once Heritage receives the signed agreement to acquire the commercial asset project and the business plan, Heritage will conduct due diligence of the project.

• Heritage expects to fund the first BCLOC, which will allow the Company to start its stock buy back program.

• Heritage is planning to launch a small commercial mortgage product to fund projects ranging from $500,000 to $1.5 million.

• A new commercial loan, named the TR2 Loan, will be rolled out. It is based on an 80% first mortgage and a 20% second mortgage that is flexible and provides an average interest rate that is lower than the current market rate.

• In early 2008, Heritage will introduce a residential mortgage product to answer the sub- prime crisis.

• Heritage will develop an action plan to merge with its conduit lender that will provide the capital infrastructure for launching new business and funding remaining BCLOCs in the pipeline.

Share structure

AS: 4 billion (as of 5th October 2007)
OS: 2.5 billion (as of December 1st 2007: Stated on HCPC website)
Float: 1.132 B (as of December 1st 2007: Stated on HCPC website)

Heritage Capital Credit Corporation
200 West Ninth Street
Suite 300
Wilmington, DE 19801
United States - Map
Phone: 302-778-4222
Fax: 302-658-5338
Website: http://www.heritagecapitalcreditcorp.com

COMPANY PRESS RELEASES
http://www.heritagecapitalcreditcorp.com/id12.html

Heritage Capital Credit Corporation Financial Statements
http://www.heritagecapitalcreditcorp.com/id5.html

Stocks Reporter has received no compensation in the form of cash or securities for coverage and has no position of HCPC shares.

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HCPC Website

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