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Frequently Asked Questions |
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Below are common questions we receive regarding the nature of a stock loan. Please contact our office should you have additional questions or clarification on an answer provided below.
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How much can I borrow against my stock? |
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Can I borrow against a basket of securities? |
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What types of securities can be used? |
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Is there a minimum or maximum loan amount? |
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What are the eligibility criteria for a stock loan? |
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How fast will my loan close? |
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Are there any hidden costs or fees? |
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Are there restrictions on the proceeds? |
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How much can I borrow against my stock?
It depends on a variety of factors and merits related to the security you wish to pledge. Securities trading on the major exchanges can realize an LTV as high as 80%, and occasionally higher under certain circumstances. Pink sheets and bulletin board securities will be lower due to price and volume requirements. Contact GFS or request a quote online to determine the appropriate LTV that your security demands. |
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Can I borrow against more then one company's stock?
Yes. GFS Investments can assist you with a quote on a basket of securities. Contact our office for details. |
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What types of securities can be used?
GFS accepts all of the major exchanges (AMEX, NYSE, NASDAQ), the smaller exchanges (Pink Sheets and Bulletin Boards), and can also arrange financing against many of the foreign exchanges as well. |
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Is there a minimum or maximum loan amount?
Minimum loan amount financed is $150,000. There is no maximum. |
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What are the eligibility criteria for a stock loan?
This is determined on a case by case basis; however the leading indicators when determining the eligibility of a stock as collateral are going to be exchange, volatility, share price, daily volume, and 30 day volume. When providing a quote, we will explain how these factors relate to your securities presented as collateral. |
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How fast will my loan close?
That depends on a variety of factors, the most important of which is how responsive you are to completing the steps needed to obtain your loan. Once all agreements are in place and shares have been transferred, the loan will typically fund in 24-72 hours. |
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Are there any hidden costs or fees?
Our policy is to be transparent and up-front in our business endeavors, as such you will never see fees and costs buried in the fine print. There are no hidden fees associated with our stock loans. Much like a mortgage loan however, there are points charged as a fee for our services, which will always be fully disclosed from the outset. Most importantly, there are never any up front fees or out-of-pocket costs with a stock loan from GFS Investments. |
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Are there restrictions on the proceeds?
The loan proceeds are yours to use as you wish, however they may not be used for the purchase of marginable securities. |
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What is needed for Investment Capital?
Preliminary Review:
The applicant MUST provide the following:
3 to 5 page Executive Summary
Details on type of funding requested
Contact information
Document List:
Clients MAY be asked to provide from the following list of information so that we are able to prepare the project info package for our investment associates.
Project Application.
Executive summary.
Two (2) Complete Hard Copies of your Business plan.
Executive and Management Resumes.
Management Ownership, % Percentiles, Breakouts, stock types, etc.
Your personal CASH investment amount in your Project.
Financial Projections/Cash Flow (5 Years)
Feasibility Study.
Use of Funds Schedule
Project Draw Down Schedule.
Information about Agreements, Guarantees already in place.
Current Assets vs. Liabilities Summary
Three (3) Corporate References
Credit References & Report
Commercial References
Purchase Agreements, Permissions, Contracts, Concessions, etc.(if applicable) Company Certificate of Incorporation or Certificate of Good Standing.
Company Articles of Incorporation.
Copy of Corporate Resolution authorizing Principal of company to borrow requested funding amount.
The above listed information requirements are provided in order to expedite your funding approval process. Please submit the Preliminary Review information to get started today. Response Time: 2-3 days. |
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