Got Stock? Need Cash? Don't Sell It, Leverage It!

Loans from $100,000 to $100,000,000 plus, using your stock as foundation.

A stock loan is usually a loan using marketable securities as pledged collateral. Our stock loans are different.

Graham Financial Associates' Non-Recourse Stock Loans Service:

Our stock lending process is simple. We use your stock, free-trading and pink sheets, as a foundation to give you a secured loan while you keep profiting from the equity you have built in your investment. Whether you're a small investor looking to make a few home improvements or a larger investor trying to diversify your portfolio, Graham Financial Associates can give you financing in order to reduce your risk of investment - known as hedging. If you need funds for corporate financing, business expansion, remodeling, or other personal use, your stock portfolio may be the answer to increasing your assets. Our knowledgeable staff can take you through the process developing a personalized, secured loan that fits your financial situation.

Our stock loan programs provide secured loans from $100,000 to  $100,000,000 or more. Our stock loans let you retain the right to reacquire your stock for the amount owed on the loan, no matter how much more valuable your stock may have become. There are no hidden fees, no closing costs, and no margin calls. Most types of loans require credit checks, but for our stock lending program, there are no credit checks and no communications between Graham Financial Associates and any credit-reporting services. Instead, we consider only the market value, volatility and average trading volume of the stock under consideration to determine the amount of the loan. We offer up to 80% loan-to-values. During the life of the loan you are provided with many options in choice of terms, renewal, and exit strategies. Hedging can protect your investment while freeing up equity for other purposes. Take advantage of this opportunity that was once only available to high net worth individuals. Call or email me for a stock loan quote today.

Brokers are welcome and protected.

Overview

Types of Stock
- Free-Trading
  *Must trade on AMEX, NASDAQ, or NYSE and most international
    exchanges
  *We also do Pink sheets/ OTC
  *Trade at greater than $0.50 per share

Terms:
-Short Term
-Mid Term
-Long Term

Choice of renewal
-Increase Loan Amount
-Increase Loan Term
-Terminate Early (US Citizens only)

Choice in exit strategy
-Pay out of pocket

Traditional Lenders:
-Unwilling to use stocks as collateral, leaving you with few options.

Brokers:
-Most Brokers who are able to margin your stock, often give you only a small percentage of the true market value.

Stock Lending

There are two kinds of stock loans; margin loans and stock-based loans. Margin loans are provided by a stock broker. Stock brokers can typically only offer loans up to 50% of the value of the stock. Stock-based loans are provided by a conventional lender such as a bank or finance company. Conventional stock lending companies can offer loans up to 80%.

Stock lending is simple. Almost any publicly traded stock is used as the foundation for a loan. The borrower lets the lender know how many shares of a certain stock they want to use. The stock lender reviews the stock and determines a loan amount. An offer can be given to the borrower the same day. Once the borrower accepts the loan offer, their stock is delivered to the stock lender. This can be done in one of two ways: by transfer on the books of the Depository Trust Company or by physical delivery in certificate form. The loan is then funded after receiving the certificate and after verification of the provenance and marketability of the shares.

Unlike typical loans, stock-loans are determined by the type of stock, not the borrower. Using stock as the foundation for a loan allows a smart investor to take advantage of many of the same lending options as conventional loans, but under less scrutiny and with more privacy. One's credit score, credit history, household income and property do not play a role in determining the amount of money to be borrowed.

There are no credit checks performed. With a stock-loans, the stock is under consideration for the loan, not the borrower. The stock-loan provider reviews the history of the stock and establishes a loan amount based on the stock.

Stock-based loans are a type of hedging strategy. This is because the borrower is reducing their risk of investment. Whether the loan proceeds are used for home remodeling, purchasing more stock options, paying off debt, or corporate financing, the borrower will increase their assets.

Small Loans from $100,000 to $500,000 plus, using your stock as a foundation.

Small Stock Loans

Giving you money for the things that matter.

Graham Financial Associates can help use your stocks to their full potential as a foundation for the things that matter most. Our diverse clientele use their loans for things like:

• Down payments on properties/ home improvements
• Paying off high interest debt
• Reinvesting into further holdings
• Expanding an existing business or starting a new one

Our loans let you maintain many benefits of ownership.

The borrower receives all shares of stock back when the loan is paid off, along with any increases due to splits or stock dividends.

No matter how valuable your stock becomes, to reclaim your shares requires only paying off the principal and interest on the loan.

Our interest rates are low based on prime plus one percent.

Large Loans from $500,000 to $100,000,000 plus, using your stock as a foundation.

Large Loans

Moving your investments forward

Graham Financial Associates - Securities Lending Department has a system in place to help you reach your financial goals. Borrow up to 80% of the market value of your stock. With qualified loan specialists providing stock based loans well into the millions of dollars, you no longer have to give up market potential. As the stock you post with Graham Financial Associates increases in value, you can borrow more money on a quarterly basis throughout the life of the loan. These loans can give you the cash flow to help you diversify your assets, invest in non-stock properties, or plan for retirement. Your financial goals can be met while you retain many of the benefits of stock ownership. During the life of the loan you are provided with many options in choice of terms, renewal, and exit strategies. We will work with you to develop a plan that helps you reach your goals. Contact me by phone or email for the stock loan quote. Graham Financial Associates - Securities Lending Department can help you move your investments forward.

Graham Financial Associates Stock Loans

With a Graham Financial Associates stock loan you retain many benefits of stock ownership while profiting from the equity you have built in your investment. Just some of the benefits are:

Immediate liquidity:

Borrow up to 80% of the market value of your stock;

Low interest rates:

Interest rates stay at 1 point above the current prime lending rate at the time of closing- no surprise increases, no unexpected rate increases to damage your financial planning later;

Very low attractive interest rate:

4.5% or less interest is fixed for long loan terms;

Interest only payments:

Interest only rates allow you to borrow with the lowest possible payments.

Borrower chosen term:

Chose a term between 3 and 10 years, with the option to extend the loan indefinitely as long as your payments are kept current.

No closing costs:

Graham Financial Associates does not burden its clients with closing costs or other up front fees of any kind;

No margin calls:

Should the value of the stock used as a foundation for your loan drop below the outstanding balance of your loan Graham Financial Associates will not request accelerated repayment. Graham Financial Associates will never make any margin-like calls demanding additional money.

We now have overseas involvement:

Graham Financial Associates partners are worldwide based financial institutions to develop programs and provide funding for your loans.

Graham Financial Associates Penny Stock Loan

With a Graham Financial Associates penny stock loan you retain stock ownership while gaining the benefit of using the equity you have built in your investment. For our purposes, a penny stock is one which has had an average market price of under $2.00 a share for the past 52 weeks. Brokers will not, as a rule, consider such a stock for margin lending, but we will! Just some of the advantages of borrowing from us are:

Immediate liquidity:

Borrow up to 80% of the market value of your stock.

Low interest rates:

Interest rates stay at 1 point above the current prime lending rate at the time of closing no surprise increases, no unexpected rate increases to damage your financial planning later.

Interest only payments:

Interest only rates allow you to borrow with the lowest possible payments.

Borrower chosen term:

Chose a term between 3 and 10 years, with the option to extend the loan indefinitely as long as your payments are kept current.

No closing costs:

Graham Financial Associates does not burden its clients with closing costs or other up front fees of any kind.

No margin calls:

Should the value of the stock used as a foundation for your loan drop below the outstanding balance of your loan Graham Financial Associates will not request accelerated repayment. Graham Financial Associates will never make any margin-like calls demanding additional money;

We now have overseas involvement:

Graham Financial Associates partners are worldwide based financial institutions to develop programs and provide funding for your loans.

Please don't hesitate to contact me if you have any questions!

For FREE Quote, Contact me!
http://www.grahamfinancialassociates.com/contact_us

FINRA Issues Warning on Stock-Based Loan Programs 

FINRA Investor Complaint Center
9509 Key West Avenue
Rockville, MD 20850-3329
Fax: (866) 397-3290
Phone: (240) 386-HELP (4357)

Investment-Related Scams

Letter of Credit Fraud

Legitimate letters of credit are never sold or offered as investments. They are issued by banks to ensure payment for goods shipped in connection with international trade. Payment on a letter of credit generally requires that the paying bank receive documentation certifying that the goods ordered have been shipped and are en route to their intended destination. Letters of credit frauds are often attempted against banks by providing false documentation to show that goods were shipped when, in fact, no goods or inferior goods were shipped.

Other letter of credit frauds occur when con artists offer a “letter of credit” or “bank guarantee” as an investment wherein the investor is promised huge interest rates on the order of 100 to 300 percent annually. Such investment “opportunities” simply do not exist. (See Prime Bank Notes for additional information.)

Tips for Avoiding Letter of Credit Fraud:

• If an “opportunity” appears too good to be true, it probably is.
• Do not invest in anything unless you understand the deal. Con artists rely on complex transactions and faulty logic to “explain” fraudulent investment schemes.
• Do not invest or attempt to “purchase” a “letter of credit.” Such investments simply do not exist.
• Be wary of any investment that offers the promise of extremely high yields.
• Independently verify the terms of any investment that you intend to make, including the parties involved and the nature of the investment.

Prime Bank Note Fraud

International fraud artists have invented an investment scheme that supposedly offers extremely high yields in a relatively short period of time. In this scheme, they claim to have access to “bank guarantees” that they can buy at a discount and sell at a premium. By reselling the “bank guarantees” several times, they claim to be able to produce exceptional returns on investment. For example, if $10 million worth of “bank guarantees” can be sold at a two percent profit on 10 separate occasions—or “traunches”—the seller would receive a 20 percent profit. Such a scheme is often referred to as a “roll program.”

To make their schemes more enticing, con artists often refer to the “guarantees” as being issued by the world’s “prime banks,” hence the term “prime bank guarantees.” Other official sounding terms are also used, such as “prime bank notes” and “prime bank debentures.” Legal documents associated with such schemes often require the victim to enter into non-disclosure and non-circumvention agreements, offer returns on investment in “a year and a day”, and claim to use forms required by the International Chamber of Commerce (ICC). In fact, the ICC has issued a warning to all potential investors that no such investments exist.

The purpose of these frauds is generally to encourage the victim to send money to a foreign bank, where it is eventually transferred to an off-shore account in the control of the con artist. From there, the victim’s money is used for the perpetrator’s personal expenses or is laundered in an effort to make it disappear.

While foreign banks use instruments called “bank guarantees” in the same manner that U.S. banks use letters of credit to insure payment for goods in international trade, such bank guarantees are never traded or sold on any kind of market.

Tips for Avoiding Prime Bank Note Fraud:

• Think before you invest in anything. Be wary of an investment in any scheme, referred to as a “roll program,” that offers unusually high yields by buying and selling anything issued by “prime banks.”
• As with any investment, perform due diligence. Independently verify the identity of the people involved, the veracity of the deal, and the existence of the security in which you plan to invest.
• Be wary of business deals that require non-disclosure or non-circumvention agreements that are designed to prevent you from independently verifying information about the investment.

“Ponzi’ Schemes

“Ponzi” schemes promise high financial returns or dividends not available through traditional investments. Instead of investing the funds of victims, however, the con artist pays “dividends” to initial investors using the funds of subsequent investors. The scheme generally falls apart when the operator flees with all of the proceeds or when a sufficient number of new investors cannot be found to allow the continued payment of “dividends.”

This type of fraud is named after its creator—Charles Ponzi of Boston, Massachusetts. In the early 1900s, Ponzi launched a scheme that guaranteed investors a 50 percent return on their investment in postal coupons. Although he was able to pay his initial backers, the scheme dissolved when he was unable to pay later investors.

Tips for Avoiding Ponzi Schemes:

• Be careful of any investment opportunity that makes exaggerated earnings claims.
• Exercise due diligence in selecting investments and the people with whom you invest—in other words, do your homework.
• Consult an unbiased third party—like an unconnected broker or licensed financial advisor—before investing.
  
  
  

For more information:

- Bernie Madoff Case
- Stanford Case
- Wholesale Grocery Distribution Ponzi Scheme
- ATM Ponzi Scheme
- Victims Turn Tables with Ponzi Scheme

Pyramid Schemes

As in Ponzi schemes, the money collected from newer victims of the fraud is paid to earlier victims to provide a veneer of legitimacy. In pyramid schemes, however, the victims themselves are induced to recruit further victims through the payment of recruitment commissions.

More specifically, pyramid schemes—also referred to as franchise fraud or chain referral schemes—are marketing and investment frauds in which an individual is offered a distributorship or franchise to market a particular product. The real profit is earned, not by the sale of the product, but by the sale of new distributorships. Emphasis on selling franchises rather than the product eventually leads to a point where the supply of potential investors is exhausted and the pyramid collapses. At the heart of each pyramid scheme is typically a representation that new participants can recoup their original investments by inducing two or more prospects to make the same investment. Promoters fail to tell prospective participants that this is mathematically impossible for everyone to do, since some participants drop out, while others recoup their original investments and then drop out.

Tips for Avoiding Pyramid Schemes:

• Be wary of “opportunities” to invest your money in franchises or investments that require you to bring in subsequent investors to increase your profit or recoup your initial investment.
• Independently verify the legitimacy of any franchise or investment before you invest.

Market Manipulation or “Pump and Dump” Fraud

This scheme—commonly referred to as a “pump and dump”—creates artificial buying pressure for a targeted security, generally a low-trading volume issuer in the over-the-counter securities market largely controlled by the fraud perpetrators. This artificially increased trading volume has the effect of artificially increasing the price of the targeted security (i.e., the “pump”), which is rapidly sold off into the inflated market for the security by the fraud perpetrators (i.e., the “dump”); resulting in illicit gains to the perpetrators and losses to innocent third party investors. Typically, the increased trading volume is generated by inducing unwitting investors to purchase shares of the targeted security through false or deceptive sales practices and/or public information releases.

A modern variation on this scheme involves largely foreign-based computer criminals gaining unauthorized access to the online brokerage accounts of unsuspecting victims in the United States. These victim accounts are then utilized to engage in coordinated online purchases of the targeted security to affect the pump portion of a manipulation, while the fraud perpetrators sell their pre-existing holdings in the targeted security into the inflated market to complete the dump.

Tips for Avoiding Market Manipulation Fraud:

• Don’t believe the hype.
• Find out where the stock trades.
• Independently verify claims.
• Research the opportunity.
• Beware of high-pressure pitches.
• Always be skeptical.

For more information:
- Operation Shore Shells investigation

Pre-IPO Stock Funding Now Available

Through an exclusive arrangement with a top U.S./Global wealth management service we are able to arrange for lines of credit using private, pre-IPO stocks as collateral.
 

  - Line of credit
  - No pre-payment penalty
  - Rate and terms are on a case-by-case basis
  - Loan amounts from $250K to $5M
  - May need full financials on the company including current

    revenue.
 

Our goal is to enhance the ability to meet the financial needs of borrowers and financing professionals while building long-lasting strategic alliances for continued ethical business relationships.