Policies, Procedures and Internal Controls
AFG is a structured specialty finance company that self imposes certain internal controls in its lending business. Familiarizing yourself with these policies will be greatly helpful as we develop a lending relationship with you.
1. Borrower down payment: AFG will always require the borrower to contribute a minimum of twenty percent (20%) real cash “at risk” equity to each loan. In certain instances, the company will require the borrower to contribute more than 20%.
2. Funds for property improvements / reconditioning: AFG does not provide funds for property improvements and reconditioning. The borrower is responsible for contributing additional funds to complete the redevelopment process.
3. Asset location concentration limits: The company may limit its funding of assets if the geographic location of a group of assets financed by the company is too intense. This is examined on a case by case basis.
4. Borrower and loan concentration limits: The company limits the amount of money it is willing to loan to any single borrowing customer, in addition to the number of loans to any single borrowing customer.
5. Funding Commitments and funding timeframes: AFG does not guarantee a funding date or exact funding time. We make a concerted effort to deploy loan funds quickly in order to meet our Borrowers needs and our reputation is pristine in meeting those commitments. At times, based upon deal flow and work load, funding may be delayed past our typical delivery timeframes.
6. Loan funding timeframes: We are capable of funding loans the same day we receive the loan application provided the borrower complies with all information requests from the company. A typical funding timeframe would be the next day after the application is received.
7. Property / Asset valuations: All valuations are prepared in house within hours of receipt of the borrowers loan application. An on-site physical inspection of the asset is a requirement prior to loan commitment. The borrower should be prepared to arrange for access (if possible) to the proposed collateral by members of the AFG inspection and due diligence staff. In the event of an adverse occupancy the AFG staff can conduct an inspection based upon exterior condition only.
8. Title / Escrow: AFG works with all recognized credible Title & Escrow Companies where the Insurance Underwriter is recognized and highly rated in terms if financial strength.