RECENT FROM Uncategorized
Private Wealth Banks and “Exotic” Loans
I recently read an article about the ability of private wealth banks to make loans that are very exotic and rare in the sense that you must have a large liquid portfolio to participate. There was a client that wanted to borrow money while leaving the bulk of his funds as security in the bank. He needed 4 million dollars and had 5 million dollars in his account at this facility. The bank suggested he buy single corporate bonds A+ at 3.17% fixed for 1O years. Now that the bank had the full collateral, they lent the client the funds at libor plus 3O bps. which came to 1.6O% and at interest only. The net effect was he was making 1.57% net on his bonds and had the interest free money to purchase his commercial deal. While this only can be done by a small portion of the market, there are exotic and exciting ways that banks know of for this “private client” to cleverly invest and borrow money.
RECENT FROM Uncategorized
Private Wealth Banks and “Exotic” Loans
I recently read an article about the ability of private wealth banks to make loans that are very exotic and rare in the sense that you must have a large liquid portfolio to participate. There was a client that wanted to borrow money while leaving the bulk of his funds as security in the bank. He needed 4 million dollars and had 5 million dollars in his account at this facility. The bank suggested he buy single corporate bonds A+ at 3.17% fixed for 1O years. Now that the bank had the full collateral, they lent the client the funds at libor plus 3O bps. which came to 1.6O% and at interest only. The net effect was he was making 1.57% net on his bonds and had the interest free money to purchase his commercial deal. While this only can be done by a small portion of the market, there are exotic and exciting ways that banks know of for this “private client” to cleverly invest and borrow money.
RECENT FROM Uncategorized
Private Wealth Banks and “Exotic” Loans
I recently read an article about the ability of private wealth banks to make loans that are very exotic and rare in the sense that you must have a large liquid portfolio to participate. There was a client that wanted to borrow money while leaving the bulk of his funds as security in the bank. He needed 4 million dollars and had 5 million dollars in his account at this facility. The bank suggested he buy single corporate bonds A+ at 3.17% fixed for 1O years. Now that the bank had the full collateral, they lent the client the funds at libor plus 3O bps. which came to 1.6O% and at interest only. The net effect was he was making 1.57% net on his bonds and had the interest free money to purchase his commercial deal. While this only can be done by a small portion of the market, there are exotic and exciting ways that banks know of for this “private client” to cleverly invest and borrow money.
Private Wealth Banks and “Exotic” Loans
I recently read an article about the ability of private wealth banks to make loans that are very exotic and rare in the sense that you must have a large liquid portfolio to participate. There was a client that wanted to borrow money while leaving the bulk of his funds as security in the bank. He needed 4 million dollars and had 5 million dollars in his account at this facility. The bank suggested he buy single corporate bonds A+ at 3.17% fixed for 1O years. Now that the bank had the full collateral, they lent the client the funds at libor plus 3O bps. which came to 1.6O% and at interest only. The net effect was...
I was recently interviewed for an article in TemPay’s “Staffing Times” Magazine
TemPay is a staffing service whose basic model is to lend money to small and mid-size staffing firms and do their back-office work. This can range from pay-roll, taxes, accounting and day to day operations that they have mastered over time. When I met TemPay a couple of years ago, their bank HNB decided they wanted to get out of the finance space and asked Larry Holstein, the president, to look for another funding facility because they no longer had an appetite for funding finance companies. HNB ( Huntington National Bank ) had also very strict limits on the line they had given TemPay including only 52% loan on...
Commercial Banking to re-finance property!
How does one find the best deal out there? Contact a specialist! Stuart@thelquiditysource.com
The Story Behind the Testimonial: David K. Powers, Private Banker
“Stuart Gelb and the Liquidity Source have demonstrated an ability to identify the most efficient financing programs for clients by leveraging many long standing banking relationships. In the area of receivable finance, Stuart is an expert and continuously helps clients implement creative strategies and obtain favorable financing terms. Stuart and I have worked together on several Private Client cases and he has delivered time and time again!” David K. Powers, Private Banker The Story Behind the Testimonial: A managing director at a major New York Bank needing private wealth funding before risking...
The Story Behind the Testimonial: SS&G
posted on: Jan 9, 2011 | author: Stuart Gelb
“SS&G has used Stuart on several occasions in an investment banking role to secure debt in some tough deals. He was successful in all cases, in situations that I doubt we would have succeeded. He has a tremendous network of senior, mezz and private lenders. He also works incredibly hard to understand the deal and his diligence is equally impressive.” Gary Shamis, CPA, M. Acc. Managing Director, SS&G The story behind the testimonial: SS&G is a highly successful accounting firm with over 6 offices in the midwest. A key client of theirs is in the staffing industry and their bank changed their model and was not going to...
The Story Behind the Testimonial: DS-Concept Factoring, Inc.
posted on: Nov 2, 2010 | author: Stuart Gelb
Here is another example of how The Liquidity Source can and will help businesses out of a sticky situation, when banks are unable (or unwilling) to help. “The Liquidity Source is a great asset and referral of deals in the trade finance arena. Mr. Stuart Gelb is a total professional with invaluable experiences in supply chain management, wholesale, retail and trade financing. Stuart’s succinct insight into the working cash flow needs of a SME makes him one of the best financial match-maker in our industry. Stuart’s natural talent as a financial auditor and his keen understanding of financial reports helps both lenders and...
The Story Behind the Testimonial: P&F Industries, Inc.
posted on: Oct 16, 2010 | author: Stuart Gelb
I like to take some of the testimonials that clients of The Liquidity Source have sent us and give some of the back story behind them. In this way, we can help people understand just how The Liquidity Source can be a valuable ally in today’s financial marketplace. “With the help of Mr. Stuart Gelb of The Liquidity Source, P&F Industries was able to identify and resolve specific financial challenges surrounding our business over the course of the last year. His leadership and advice helped establish us with a new financial institution better equipped to accelerate our success and take the company to the next level. Mr. Gelb...