Note 6. Long-Term Debt and Other Financing Arrangements

	Year ended December 31,
	2016		2015
Financing agreement with FlatIron capital. Down payment of $16,500 was required upfront and equal installment payments of $9,610 to be made over a 10 month period. Annualized interest is 5.25%	$	-	$	48,050

Promissory note issued to a financial institution, bearing interest at 8%, interest payable monthly, and principal payments due quarterly. Secured by all of the Company’s rights, title, interest, claims, and demands associated with certain condominium units held in LMF SPE #2, LLC and all cash held in LMF SPE #2, LLC. Accrued interest is due monthly beginning January 29, 2015. Installment of principal is due quarterly. Note matures on April 30, 2018 and can be prepaid at any time without penalty. Principal balances for this promissory note were $4,540,274 and $6,241,555, respectively, as of December 31, 2016 and 2015. Unamortized debt issuance costs were $96,896 and $193,792, respectively, as of December 31, 2016 and December 31, 2015.		4,443,378		6,047,763

Promissory note issued to a financial institution, bearing interest at 6% plus one month Libor, principal payments of $60,000 per month plus interest due through maturity on February 1, 2018. This loan is collateralized by all of the accounts receivable, contract rights, and lien rights arising from or relating to collection of Association payments made by the Company relating to certain accounts as well as all deposit accounts and cash of LMF October 2010 Fund, LLC. LM Funding, LLC and its members guaranteed this loan. Principal balances for this promissory note were $720,000 and $1,440,000, respectively, as of December 31, 2016 and 2015. Unamortized debt issuance costs were $2,500 and $4,167, respectively, as of December 31, 2016 and December 31, 2015.		717,500		1,435,833
	$	5,160,878	$	7,531,646

Minimum required principal payments on the Company’s debt as of December 31, 2016 are as follows :

Years Ending
December 31,
2017	$	1,622,529
2018		3,637,745
		5,260,274
Unamortized debt issue costs		(99,396	)
	$	5,160,878