Benefits
- Fixed interest rates between 2.5% and 4.5%
- Interest Only quarterly loan payments
- Loan terms of 3, 5, 7, or 10 years
- Fast Funding - In most cases... 7 - 10 days from the time of application
- No credit or income verification
- Funds may be used for any purpose including personal or business use
- Non-recourse loan. The only collateral are the pledged securities
- Loans available for up to 80% of the securities value
- The borrower keeps all dividends and upside market appreciation on the securities
How It Works
- Loan-to-value ratio and the interest rate are driven by what securities are pledged.
- No principal amortization or loan prepayment
- At the end of the loan term the loan may be renewed, refinanced, or paid off
- At pay off, the exact number of shares initially pledged is returned to the borrower
- Default trigger set at 80% of the loan amount not 50% of the securities value like typical margin loans. For example: securities value of $1MM, loan of $800k, default trigger at $640k (80% of the loan amount). If the securities value fell below $640k the borrower could walk away from the obligation of repayment of the loan and securities and keep the original loan proceeds ($800k) or contribute cash or securities to bring value back to $640k.
Criteria
- The stock must be free-trading without any restrictions.
- Retirement funds (401k's, pensions, etc), CD's, do not qualify for this program.
Simple Steps
Complete the Simple Quote Form listing the number and name of securities and symbol.
We will quickly determine the amount of the loan and the interest rate available and prepare a loan proposal for you.
If you agree to the terms the next step will be for you to provide proof of ownership of the securities. We will then verify the values and within a few days the loan proceeds are transferred into your bank account.
Upon repayment of the loan at the agreed upon terms the same amount of securities will be returned to you. It's that simple!
