Frequently Asked Questions

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About CFC

Who is Collateral Finance Corporation (CFC)?

CFC is a licensed California Finance Lender.  Established in 2005, CFC lends against precious metals and numismatic holdings.  CFC is a wholly owned subsidiary of A-Mark Precious Metals, Inc. a public traded company listed on the NASDAQ (symbol “AMRK”) that is a leading full-service precious metals trading company.  Founded in 1965, A-Mark reported revenue of $7.5 Billion for its Fiscal Year Ended June 30, 2018.

How is a CFC loan applied for?

Loan applications are made via CFC’s on-line portal.  CFC’s Operations Team can be reached at (800) 232-5767 to assist with an application.

Is someone available to respond to questions?

The CFC Operations Team can be reached on at  Support@CFCGoldLoans.com as well as (800) 232-5767 to assist with an application or answer questions on an existing loan.

Does CFC provide investment advise?

No.  CFC is a lender and does not offer any advice related to purchasing, holding or selling precious metals.

Application Process

Is there a minimum loan amount?

Yes.  CFC has a minimum loan size of $25,000.  This means that, based on a typical Loan-To-Value ratio of 65% – 75%, a borrower needs to have approximately $35,000 of precious metal collateral.

What type of assets does CFC accept as loan collateral?

CFC lends against bullion in the form of gold, silver, platinum and palladium as well as numismatic assets of coins and paper currency.

How much does CFC lend against qualified collateral?

CFC typically lends (the Loan-To-Value) up to 75% of the current spot price of precious metals and an LTV of up to 65% of the estimated market value of coins and paper currency.

How long does the application process take?

CFC endeavors to promptly process loan applications.  The typical time from the submission of an application to receipt of funds is ten or fewer business days.

How are bullion holdings valued?

CFC references spot prices provided by corporate parent A-Mark Precious Metals to determine the value of bullion collateral.

Do numismatic holdings need to be graded for CFC to extend a loan?

No.  While CFC recognizes the ratings provided by leading grading firms The Professional Coin Grading Service (“PCGS”) and The Numismatic Guaranty Corporation (“NGC”), CFC employs a full-time numismatist on staff to independently value (and, if graded, verify) coins and paper currency.

How are numismatic holdings valued?

CFC’s in-house numismatist references a variety of sources including leading third-party rating agencies, auction prices and independent expert opinion to determine collateral values.

What information is a borrower asked to provide to secure a loan?

Individual borrowers are asked to provide contact information, an estimate of their liquid assets and net worth.  A copy of a government issued ID (generally a driver license or a passport) is required to secure a loan as well as disclosure related to liens, judgments or pending litigation.

Are there any residency restrictions for a loan?

Yes.  Borrowers must be citizens or legal residents of either the United States or Canada.

Are there restrictions on the use of the loan's proceeds?

Yes. A borrower is required to represent that a loan’s proceeds will be used for commercial investment purposes.  The objective of this restriction is to ensure that someone is not borrowing capital to fund day-to-day personal expenses.

Does prior credit history/loan experience matter?

No.  Prior bankruptcies or a less than optimal credit record do not directly impact loan decisions.

Does a borrower need to have clear title to their collateral assets?

Yes. CFC will perform a search of relevant Uniform Commercial Code (UCC) filings to ensure that there are no claims on the proposed collateral.

Loan Terms

What is the typical term of a loan?

CFC loans are for 180 days.  Borrowers are generally offered the opportunity to renew their loan several weeks before maturity.  Most CFC loans are renewed for multiple terms.

Are there any loan fees?

No.  Loans do not have origination, pre-payment or any other fees with the exception of a storage charge on the full value of their collateral.

What interest rate does CFC charge?

Interest rates are based on a combination of factors including trends with key reference points such as the Federal Funds Rate and Prime Rate, loan size relative to value, collateral complexity and, as it relates to renewals, a borrower’s history of timely payments.

How is interest calculated?

Interest is calculated daily based on a 360 day calendar year.

How often is interest billed?

Interest is billed monthly.

How does a borrower receive a loan statement?

Loan statements are sent by e-mail.  Borrowers may also access their statements on CFC’s online loan platform.

How are loan payments made?

Payments may be made via ACH, check, credit card or bank wire.

Can a borrower access additional funds if the market value of their collateral increases?

Yes.  CFC will, on a case by case basis, consider requests to extend additional capital based upon market conditions and other factors.

Are loans subject to margin calls?

Yes.  A decline in collateral value based upon current market prices can result in a margin call.  The purpose of a margin call is to return a loan to an acceptable Loan-To-Value ratio. Borrowers are generally provided an opportunity to meet a margin call by supporting their loan with additional collateral or cash capital as well as authorizing CFC to monetize a portion of their existing collateral.

Can a loan be paid off early?

Yes.  A loan can be paid off any time without incurring any fees.  Loans may be repaid by bank wire, check or through the authorized sale of the underlying collateral.

Can a borrower request that a portion of their collateral be released during the loan term?

Yes.  A borrower may request that collateral be released either by providing substitute precious metal of equivalent value or, if the value of their collateral has increased during a loan’s term, monetizing a portion of that increase while remaining cognizant of CFC’s Loan-To-Value guidelines.

Shipping and Storage

Where is the collateral metal stored during the loan term?

CFC provides borrowers with the option to choose from a global network of secure and fully insured depositories.  Storage options in the United States include highly regarded facilities in Las Vegas and New York.  Borrowers interested in international depositories can, through a CFC affiliated company, access a storage network with locations in Canada, Switzerland and Singapore.

How is collateral shipped to the designated depository?

CFC provides borrowers with a range of shipping options via the United States Postal Service and UPS.

Is insurance available for shipping?

Yes.  CFC provides insurance coverage for approved shipments via the United States Postal Service and UPS.  CFC’s Operations Team is available to provide more details on the terms and conditions of insurance coverage.

How is collateral returned to a borrower when a loan is closed/paid off?

CFC works with a range of globally recognized shipping companies (primarily the United Stated Postal Service, UPS and FedEx) to return collateral to borrowers. The borrower is responsible for the cost of the return shipment while CFC provides insurance coverage.

Auctions

Can I get a loan on Auction Purchase?

CFC has a long standing relationship with Stack’s Bower’s Galleries and other leading numismatic auction houses. We often partner with these companies to support their auctions by providing financing for up to 70% of an item’s sale price at attractive interest rates. Please contact CFC or your preferred auction representative to learn more about the program.

Dealers

How does CFC work with dealers of precious metals, U.S. coins, world coins and paper currency?

CFC offers dealers competitive financing on their inventories to provide needed liquidity, the ability to swap collateral quickly and the opportunity to offer their retail customers third party financing for their purchases. In addition, CFC offers dealers competitive financing on their inventories to provide buying power before auctions.