Investment Capital

In the competitive financial marketplace, not all good, dynamic, growing companies obtain the expansion capital they need. We are ready to provide Corporations access to Venture Capital, Debt financing, Private Equity firms, brokerage firms, investment groups, institutional and/or a combination, through our investment partners. Many aspects of business are changing, but few are changing as rapidly as the financial marketplace. In the past, business executives seeking funds asked how much, today they ask how fast. Indeed, global competition and the application of computer technology, validate that funding provided too late, is ineffective as no funding at all. Speed, decisiveness and commitment in today's fast moving world are the foundation of competitive advantage.

At GFS, we leverage our relationships on your behalf, to provide our clients with funding opportunities in every channel of capital formation.

Private Placements - GFS and its principals have been successful in raising capital through private placements.  These transactions involve raising funds from a limited group of individual or institutional investors as opposed to raising equity capital in the public markets.  Some advantages to the issuers include confidentiality, lower transaction costs, fewer filing requirements and a less time-consuming process.   Bridge Financing - GFS’ principals have been successful structuring and participating in bridge financings for companies, which have good prospects for near term public offerings or private placements.   PIPE or Private Investment in Public Equity - GFS assists in structuring equity transactions with private investment or mutual funds buying common stock for a company at a discount to the current market value per share, with substantial upside potential, invariably with warrants.  Its principals negotiate for maximum value and minimum risk.  GFS remains ever mindful of the company’s needs.   Commercial Lending - We partner with a variety of commercial lenders that can assist with your commercial loan requirements.  If you are looking for a commercial loan anywhere in the United States, you've came to the right place.  We provide commercial lenders for all types of income producing properties.  Our commercial lender partners offer competitive rates and terms for purchases, refinancing, take outs and new construction. Click on the type of loan you are looking for in the commercial loan form. We work with commercial lenders who offer financing from 100,000 to 300,000,000 plus.  Complete the loan application below and we'll contact you to go over your needs. Common Stock Equity Line of Credit - Ideal for companies with an undervalued stock price. “Draw down” is based on financial needs of company. Management has full autonomy over the credit line. Limits dilution by utilizing an increasing stock price as management implements capital. Floor provisions limit downside pressure. Venture capital – We prepare your company for submission to Venture Capital firms which provide money and resources to small businesses with exceptional growth potential. Most venture capital money comes from an organized group of wealthy investors. We match your company with the criteria of over 100 firms. Register to gain access to our Venture Capital Directory. Block Sales of Stock – GFS can arrange for the sale or purchase of a large quantity of securities to its Hedge Fund or Private Equity partners for most shares on U.S. markets. In general, shares are purchased at a discount to current market price and are placed in a larger portfolio. The normal discount ranges from 10 to 50 percent depending on the issue. Acquisition/Consolidation Financing / Change of Ownership Financing – For companies which can participate in roll-ups. These investments are typically structured as control positions in companies with consistent cash flow, and strong balance sheets. Suitable investment candidates are usually those which have some characteristic which permits investment at low multiples. Size due to industry fragmentation, geographic location and occasionally fundamental structural issues are a few examples of what we see as opportunity. The average investment period varies depending on the individual position, and exits for the investors are typically private sales, mergers with strategic partners or exit through the public markets.

Alternative Financing

Accounts Receivable Financing - A revolving line of credit secured by accounts receivable financing is among the most efficient way for a company to get the cash it needs for day-to-day operations--to pay bills, increase inventory or meet payroll. Using accounts receivable as collateral, you can get a loan, line of credit for whatever needs, without taking on extra term debt or diluting your equity. The value of the accounts receivable remains on the borrower's balance sheet, but is committed as security for the loan. As receivables are paid, it replenishes the value of line of credit. Also, because non-liquid assets aren't tied up as collateral, a company is free to apply for other types of business loans. When you use accounts receivable to secure a loan, you can expect to get about 75 percent of the face value of your fresh invoices. The loan-to-value ratio drops rapidly for older accounts (90-120 days). Invoice Factoring - Factor financing entails the sale of account receivables (selling your invoices) to another company (the factor). This has been around for more than 150 years and is very common in most manufacturing, distribution and service industries. The seller receives usually 75-80% of face value of the invoices immediately, and the balance is paid less 2-3% within 30 days upon collection of the invoices. There are two types of factoring: 1. Recourse Factoring: the factor does not risk any bad debts. In other words, the factor will be able to reclaim their money from you if the customer does not pay. The factoring agreement will specify how many days after the due date for payment you must refund the advance 2. Non-Recourse Factoring: the factor takes on the bad debt risk. It accepts specified risks such as total disappearance, but does not insure against slow payment. Because of this, non-recourse factoring tends to be more expensive than recourse factoring. Inventory Financing - To use inventory to secure loans, lenders will most likely use a bonded warehouse — an approved warehouse used to store goods and monitor inventory. Loan amounts vary widely from about 30% to 80% of the value of your inventory. The most economical way is to have the lender who will advance the funds for a Letter of Credit to purchase the goods, store them in a bonded warehouse, ship the purchase orders of your customers, and then turn in the invoices to the lender instead of cash payments. (Most efficient and economical) Business Line of Credit - GFS Investments is in the business of providing capital for Business Owners and Officers. We assist our clients in the process of acquiring Lines of Credit through our affiliate bank plan. This is a signature only and credit score driven Business Loan application for the company. Any authorized company officer can offer a personal guarantee to receive this loan to the company. The guarantor must have a score of 680 or better. The loan does not show up on their personal credit report but instead on the Companies Dun and Bradstreet report. The loans are usually 125k to 500k, extended over 10 yrs, and interest may be Prime up to Prime +2. Credit reports can be pulled on FreeCreditreport.com, TrueCredit.com, or Experian for minimum cost without an Inquiry occurring. Send back the credit report you pulled along with the application if you qualify. The credit line can be used for more than one project simultaneously, or it can be kept dormant until you have a project for it. Let one of our Business Finance Consultants help see if you fit the model. Online Application available. Start Up & Asset Based Loans - Either a new Franchise or independent business. Start up loans are given to a new business that has presented a business plan that demonstrates their ability to succeed in their new venture. Start Up Loans require detailed information, risks involved, and projected profits to attract lenders. All issues must be addressed such as industry, target market, growth plan, and complete financials for projected income and a plan to repay the loan. These may include new patents, copyrights, improved process and variety of new ventures. Asset Based - We provide low-interest, long-term loans to acquire and install new or used machinery and equipment; or to upgrade existing machinery and equipment. Manufacturing, industrial, agricultural processors, direct mining operations, information technology, biotechnology and medical facilities can all be funded. Loan amounts are determined according to the market value (new or used) and distressed sales value (auction value). SBA 7a - Either a Franchise or independent business. At the present time SBA is the most popular business finance program with 28 new loan products ranging from $25,000 to $2 Million. In most cases the borrower should have 20% or more in equity. Combination of SBA and Conventional loans - Some of the financing SBA 7a may be used for are start-up and existing small business working capital, machinery and equipment, furniture and fixtures, land and building purchase, renovation, new construction, leasehold improvements, and high interest rate debt refinancing. SBA 504 - Provides growing businesses with long-term, fixed-rate financing for major fixed assets, such as land and buildings. Proceeds from 504 loans may be used for fixed asset projects such as: - Purchasing land and improvements, including existing buildings, grading, street improvements, utilities, parking lots and landscaping; construction of new facilities, or modernizing, renovating or converting existing facilities; or purchasing long-term machinery and equipment. The 504 Program cannot be used for working capital or inventory, consolidating, repaying debt, or refinancing. Generally, the project assets being financed are used as collateral with personal guarantees of the principal owners also being required. Construction Loans - 3 Loans are included 1. Land loan: 50% LTV maximum 3 year term 2. Construction loan: 75% of future value for 18 month term, interest accumulation-no monthly payments; based on voucher system. 3. Take out loan: up to 85% of future value on high demand properties for 25 year term either fixed or adjustable (prime plus, or LIBOR plus). We also offer packaged land + construction + take out loans all rolled into one, saving you tremendous amounts in separate lender and other related fees. We can offer land loans that will subordinate to construction loans leaving you more funds for construction. Real Estate Investment Loans - GFS is involved in all aspects of Single use (church, school, hotel, motel, automotive, night club, port and transportation facilities) the unusual loans, and mixed use real estate development, including construction, sale and leasing of industrial facilities, shopping centers, office and commercial buildings, multi-family housing projects, condominiums and residential subdivisions. LTV for each loan varies from 75% to 90% depending on which loan is being applied for. Mezzanine - Mezzanine loans are similar to second mortgages, except a mezzanine loan is secured by the stock of the company that owns the property, as opposed to the real estate. Mezzanine loans range above $2 million, with collateral above $ 10 million. It is also possible to obtain a loan as small as $1 million. There are three typical uses for a mezzanine loan 1. To liquidate equity when refinancing is not feasible (high pre payment penalty-lock-out clause in first trust deed). 2. To complete a value added transaction, where at the close of escrow or soon after the value of the collateral will increase based on a predetermined action of the borrower (partially vacant office or industrial building rented out to the a contracted tenant after close of escrow). 3. The most common use for mezzanine loans are for low LTV construction loans, which supplement the borrower’s debt, in the form of a second trust deed to complete the construction. Machinery & Equipment Loans - We provide low-interest, long-term loans to acquire and install new or used machinery and equipment; or to upgrade existing machinery and equipment. Manufacturing, industrial, agricultural processors, direct mining operations, information technology, biotechnology and medical facilities can all be funded. Loan amounts are determined according to the market value (new or used) and distressed sales value (auction value). To raise capital, we provide sale/leaseback of your equipment with $ 1.00 buy out. Debtor in Possession Financing - Chapter 11 bankruptcy is the usual choice for businesses seeking to restructure their debt. The debtor usually remains in possession of its assets, and operates the business under the supervision of the court and for the benefit of creditors for a predetermined time (sanctioned period) to satisfy the creditors and obtain relief from the court. We provide outside short term financing to pay off creditors usually 50-60% LTV when there is real estate involved of outstanding debt instead of the common auction value of 5 to 6 cents on the dollar, to save jobs, stabilize accounts payables, and therefore continue business. Mergers/Acquisitions/Buy-out partners - A combination of swapping shares, debentures, long & short term paper obligations, including assets and personal guarantees to accommodate each party’s needs. Transition/transfer of business between family members is also partially within this category of lending. Required buffer or equity remaining with the principals at the end of the transaction varies by business type usually ranging 20%-50%, however the term of such loans are 2-5 years sometimes requiring a commitment from another lender for the upcoming permanent loan at the end of the term, or a definite exit strategy, defined and agreed upon by latter principals. Vendor Purchase Order Financing - If you receive a large order and do not have the resources to manufacture and deliver the product, VPO financing will give you 75% of the value of the purchase order, to manufacture, deliver and invoice to your customer and turn in the invoice to the lender to receive the 25% balance less 3% discount. Purchase Order Loans provide continuing cash flow without the requirement of periodic payments or interim payoffs. New sales continuously create new sources to generate cash without the business not having to deal with renewal of loans or worry about maturity dates. Purchase Order Loans serve as an additional Line of Credit.

We look forward to helping you meet your business and financial goals. For consideration, submit your request online or send your Executive Summary to us today via email at funding@gfsinvestmentsonline.com.