Graham Financial Associates

BUSINESS FINANCING: ALTERNATIVE FINANCING PROGRAM TO 100%  (NO CASH EQUITY REQUIREMENTS)

Hybrid Debt Instrument Program (private Class “A” Preferred stock offering)

Class “A” Preferred stock certificates are the privately issued equity/debt instruments of a company. Our GFA Contact Lender/Underwriting Group source can help a Client to create this and issue AND CAPITALIZE TO PREQUALIFIED FINANCE MARKETS.

PROGRAM OVERVIEW and BENEFITS:  
 

• Countries of Interest: USA and International (USA-friendly countries as qualified)
• Capital Finance amount: from $3M (USD) and up on a qualified basis
• Simple Interest---8 to 11% (as qualified and subject to market adjustments)
• Loan Term: 3 to 10 years
• Investor ownership: None
• Interest payment Deferment Period: Qualified to each project based on pro forma cash flow
• Recourse and Personal Guarantees: None
• Management  rights of the Investor: None
•  Voting rights to the Investor: None
• Commonly underwritten for start-up business concerns or a company seeking to advance company growth without going to the common public market(s) or encumber itself with additional conventional debt burden(s) that could potentially or adversely affect its credit rating or standing. Or simply in cases where the company does not categorically qualify for conventional asset or UCC based debt financing.
• Security: The CLASS "A" preferred certificate shares (to be issued) of a company; which acts as a preferred lien interest until the loan is paid back. Simply stated the shares securing the loan give the investor the right to repayment ahead of any other party (principals included) in lieu of a loan default.
• Class “A” Preferred stock certificates are not publicly traded. They are underwritten in the same manner as Class “C” publicly traded stock certificates but require no SEC regulation or Licensed Securities Broker to market them.
• Projects are prequalified to private capital markets in order to mitigate and reduce risk and in turn provide the proposed capital investment finance requirements of the Client.
• Underwriting completion time to release for marketing/close @ 30-60 days (estimated).
• Release time to closing and the disbursement of funds: 30-45 days thereafter (estimated)
• Customary Underwriting Service fees apply due and payable at underwriting engagement: Costs calculated on a sliding scale basis (qualified) beginning at .60% of capital finance requested
• ALL funds IMMEDIATELY released to Client as the money closes, less customary 3rd party Broker and Fiduciary fees.
• No hold backs, reserves, or PAR value(s) required for release of NET finance capital to the Client.
• The process for pre-qualification is straight-forward and timely.        
                         

IMPORTANT: If you are serious about securing funding, please email us a:

• 5 to 10 page Executive Overview on the project (figures expressed in U.S. Dollars) and a

• 10-year projected financial proforma - totals only (ROWS: Sales, Expenses, and Net Operating Income--IN EXCEL FORMAT PLEASE).
  
  

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Client Funding Request Process

GFA does not charge an upfront retainer fee to initially look at a project and we do not require an exclusive engagement from the Client (only regarding GFA Contact sources). We realize that the Client may already be working with others in the attempt to secure funding. We initially process the Client’s overview for free to determine if it is the type of project that we want to work on (we turn down initial project funding requests often).

Generally speaking, the manner in which GFA will process your funding request is as follows: after the initial inquiry by the Client or broker working on behalf of the Client and receipt of the Executive Overview form, GFA will do an initial processing analysis to determine the probability of securing funding for the Client and also to determine if GFA wants to work on the Client’s project funding request. If so, GFA will send an email response outlining to the Client or broker working on behalf of the Client, what specific documentation GFA will need in a complete package to present to the GFA Contact and the FINANCIAL SERVICES CONSULTING AGREEMENT. After receipt of the complete package and processing fee, GFA will then review the complete file and continue processing. If the package is not complete, GFA may request further documentation so that the review and processing can be as thorough as possible with the information provided; GFA will then do the business analysis, select the appropriate GFA Contact for that specific project, and then GFA will package up the file to be sent to that specific, selected GFA Contact for the next phase of risk analysis and due diligence.

The GFA Contact will then conduct a careful review of the package. If the Client funding request meets the appropriate criteria, the project will also be pre-qualified by the GFA Contact and a formal proposal will be sent to the Client in the form of an engagement Letter of Interest ("LOI"). The engagement LOI will outline the funding parameters of the transaction available to the Client based on the information available at that time. Upon the Client’s receipt of the engagement LOI, they may visit directly with our GFA Contact to discuss the transaction and ask any appropriate questions, ask for clarifications, or modifications, if needed.

When the Client comes to a comfort level, and a "meeting of the minds" as to the language in the engagement LOI, agreement with the terms, and wishes to proceed, then the Client executes the engagement LOI. The execution of the formal engagement LOI shows "good faith" to GFA  and to our GFA Contact that the Client has read, understands, and is in full agreement with the terms of the engagement LOI.

Depending on the protocols of the specific GFA Contact chosen by GFA, they may proceed based on the executed engagement LOI or they may issue a formal Application. If so, it will reflect the terms and conditions of the engagement LOI. At execution of the formal engagement LOI or Application, an Application fee or other type of fee may be required by a GFA Contact from the Client, subject to the complexity of the transaction, travel required, and is determined on a case-by-case basis. Lastly, assuming that the Client provides in a timely manner all of the needed documentation, 3rd party reports as needed, and complies with all underwriting requirements, funding may occur within 30-45 working days after receipt of all the documentation items required by the GFA Contact. (These procedures may vary based on the Client’s funding request and the specific GFA Contact chosen by GFA that will receive the funding request.)

BROKER INQUIRIES ARE WELCOMED AND APPRECIATED.

IMPORTANT: If you are serious about securing funding, please email us a 1 to 5 page Executive Overview or feel free to call us first.

Securities-Based Loans: 

GFA Securities Lending Dept.

Just a reminder that we (and our lenders) are still successfully funding transactions for Securities-Based Loans and Lines of Credit.

(Stock Loans)

As you know this funding platform allows the borrower to use their assets (stocks, bonds, mutual funds, ETF's and other securities) as collateral to obtain funds for any purpose. 

New - Lines of Credit are now available for some Restricted Stocks.