INVESTMENT ADVISOR

We’ll Get You There

INVESTMENT ADVISOR FAQS

When people work with Oak Street Funding, we hear some frequently asked questions. Here are some of our most popular investmest advisor FAQs. 

Why do investment advisors need Oak Street Funding?
Investment advisors have limited access to capital from banks because of the intangible nature of their assets. Advisors who need a business loan can obtain a cash flow loan from Oak Street Funding to grow their business based on the value of their future fees, even though they are intangible.
Why should I do business with Oak Street Funding?
This is one of the most important investment advisor FAQs! Oak Street Funding has provided hundreds of millions of dollars to financial services professionals across the country since 2003. We are a technology-driven, niche lending company with an experienced team that is flexible, accessible and responsive. We can customize our loan structures to meet the growing demand for investment advisor financing, and we have the capacity to loan up to $30 million. For us, it really is about the relationship and not the transaction. From development to divestiture, we’ll help you get there.
Is Oak Street Funding a direct lender?
Yes, we are a direct, non-SBA specialty lending company. We provide in-house loan processing, underwriting and servicing. Your loan will not be sold to another organization.
What are the steps involved in obtaining financing from Oak Street Funding?
This is another one of our most popular advisor FAQs. Knowing what to expect when you need a business loan can bring peace of mind.

Step 1: The first step is an analysis of your cash flow that will be used as collateral for your loan by one of our sales managers.

Step 2: Based on this review, we will propose preliminary loan terms.

Step 3: Once you have agreed to preliminary terms, your loan coordinator will guide you in gathering all of the required documents for our underwriting team.

Step 4: Once all required documents are received, you will be assigned an underwriter who will work through the due diligence process.

Step 5: Once the loan documents are signed and approved, we will fund the loan proceeds.

How long will it take to put my financing in place?
All decisions are made by the Oak Street Funding team which allows us to expedite the process for our borrowers. The amount of time required to complete the business lending process depends on the timeliness of information provided by you and any respective parties to the transaction. Once all required documents are in, the approval process can be completed in as little as three weeks. More complex transactions may take longer to close.
What fees will I have to pay to complete a financing?
An estimation of costs associated with the loan are presented on our term sheets. Once you have reviewed and agreed to the quoted terms, we require a non-refundable, good faith deposit which will be credited towards your closing costs at funding. There is also an origination fee that varies depending on the size and terms of your loan, as well as any third-party costs such as a UCC filing fee, legal fees or a valuation fee.
What if I do not like the financing alternatives presented to me?
Before beginning the underwriting process, we determine the type, purpose and costs of financing, and you pick the structure. We are very straightforward about what is and is not possible. You are not required to accept any financing offer.
What is your interest rate?
This may be at the top of our advisor FAQs list! The short answer is, it depends on a variety of factors. We take a risk-based pricing approach which encompasses a cash-flow analysis, a leverage component, credit health, and an overall review of the firm’s business performance.
What length of terms do you offer?
Our terms vary by product, but typically they range from 7 to 10 years for investment advisor loans.
Can I borrow additional funds before my loan is paid off?
Absolutely! Many of our customers have found our lending capital to be an excellent way to take full advantage of the value of a growing business. Several of our borrowers have requested a second or even third loan. When they need a business loan and understand how easy the process is, they tend to return to Oak Street Funding.
What ongoing commitments will I have with Oak Street Funding once I have a loan funded?
Investment advisor customers are required to submit statements from their custodians, so Oak Street Funding can reconcile the recurring revenue on a monthly or quarterly basis.
How can I use my funds?
Oak Street Funding provides a variety of cash flow loans, including acquisition loans, succession loans, and work capital loans.

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