How do I increase the investment limit of my corporate lender account?

Your corporate Lending Loop account will initially be considered a non-eligible investor and have an investment limit of $10,000 of outstanding principal over a rolling 12 month period.  If you wish to increase the investment limit of your corporate lender account please reach out to your Dealing Representative, who will determine if the corporation meets the requirements. The requirements for each investor type are listed at the bottom of this article.

In addition to the requirements, Lending Loop will be required to gather documentation in order to confirm that the income of the corporation/persons meets the necessary requirements.  In order to provide sufficient proof that the corporation meets the requirements, you will be required to provide financial statements that have been prepared by a third-party accountant of the corporation’s most recent fiscal year. For the personal requirements we accept the following documents:

  • Notice of personal tax assessment or T4 last 2 years (2016, 2017) and recent pay stub
  • Balance sheet certified by an independent accountant
  • Letter from an independent account or legal counsel as to whether you meet the income or financial asset requirements required to be considered at your desired investor class.  Example templates available for download for accredited investors or eligible investors.
  • PDF statements of a bank and/or investment accounts and/or property assessments showing sufficient assets to surpass the regulatory threshold

Eligible Investor ($10,000 - $100,000)

  • A Corporation whose net assets exceed $400,00
  • A Corporation whose net income before taxes exceeds $75,000 in each of the 2 most recent calendar years and reasonably expects to exceed that income in the current calendar year
  • A Corporation of which a majority of voting securities are beneficially owned by eligible investors that personally qualify using one of the below requirements

INDIVIDUAL REQUIREMENTS

  • An individual whose net assets, alone or with a spouse exceed $400,000
  • An individual whose net income before taxes exceeded $75,000 in each of the 2 most recent calendar years and who reasonably expects to exceed that income in the current calendar year
  • An individual whose net income combined with that of a spouse exceeded $125,000 in each of the 2 most recent calendar years and who reasonably expects to exceed that income in the current calendar year

Accredited Investor ($100,000+)

  • A corporation that has net assets of at least $5,000,000 as shown on its most recently prepared financial statements
  • A corporation of which all the owners qualify as accredited investors themselves.

INDIVIDUAL REQUIREMENTS

  • An individual who, alone or together with a spouse, owns financial assets worth more than $1 million before taxes but net of related liabilities
  • An individual, who alone or together with a spouse, has net assets of at least $5,000,000
  • An individual whose net income before taxes exceeded $200,000 in both of the last two years and who expects to maintain at least the same level of income this year
  • An individual whose net income before taxes, combined with that of a spouse, exceeded $300,000 in both of the last two years and who expects to maintain at least the same level of income this year
  • An individual who currently is, or once was, a registered adviser or dealer, other than a limited market dealer

 

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