RIA FIRM

We’ll Get You There

FREQUENTLY ASKED QUESTIONS

Why do RIAs need Oak Street Funding?
Registered investment advisors have limited access to capital from banks because of the intangible nature of their assets. RIAs can borrow money 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?
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 commercial lender with an experienced team that is flexible, accessible and responsive. We can customize our loan structures to meet the growing demand for RIA financing, and we have the capacity to loan up to $20 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 lender. 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?
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 team which allows us to expedite the process for our borrowers. The amount of time required to complete financing 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?
We take a risk-based pricing approach which encompasses a number of factors including 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 RIA loans.
Can I borrow additional funds before my loan is paid off?
Yes. Many of our customers have found this 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 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?
RIA customers are required to submit statements from their custodians, so Oak Street can reconcile the recurring revenue on a monthly or quarterly basis.
How can I use my funds?
When borrowing money from Oak Street Funding, your funds must be used for business purposes such as acquisitions, successions, working capital and debt restructuring.

FEATURED BLOGS

Can you ever get ahead of technology?

Colin Randall* is frustrated. His firm’s clearing partner just updated its software suite, and Colin discovered that the earlier version of Windows on three of the five computers in the firm’s office are incompatible. Terry, his friend who runs the local computer...

Are you creating a legacy or capital?

Are you creating a legacy or capital? As a longtime partner in your RIA firm, you’re proud of your professional expertise and what you’ve been able to accomplish. Whether you took the step of becoming a partner to have a bigger say in how your clients are served, to...

Are you ready for disruption and correction?

If you’ve been an RIA for any length of time, you know your clients well. The day after the Dow takes a 500-point dive, your phone is ringing off the hook as you walk into the office. She’s terrified. Does this mean she’s going to lose her life savings? Should he take...

How is your communications strategy?

In the ever-more-competitive financial services market, most RIAs are constantly looking for whatever will give them an edge over their competitors and keep clients from moving on. Some will share new insights others will add new lines of financial products, while...

Have questions? Talk with our experts for more information.