Use your stock as collateral to secure a non-recourse loan!

With a stock loan, shareholders retain contractual ownership, enjoy the tax benefits from not having to sell their securities, and still profit from upside appreciation should the stock price rise. For free-trading shares, a stock loan also protects shareholders from falling stock prices. A stock loan is a non-recourse loan; if the loan defaults, the stock is surrendered and there is no further obligation.

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Program Highlights:

Interest rates as low as 3%
50 - 70% loan to value, depending on the quality of the stock
Non-recourse for free trading shareholders
Funding in 7 - 10 days
Almost all major exchanges including Hong Kong
Affiliates can be financed if the stock trades options
No credit checks, credit reporting, or background checks
Simple interest payments due monthly
Retain all or a portion of upside appreciation
3 -5 year terms
Term renewals for up to one additional year
No margin calls

Interest Rates

Interest rates are fixed between 3% and 5% and are determined by certain variables and conditions of the stock and the exchange it trades on. Simple interest payments are due monthly and the principal is due at term.

Upside Appreciation

At term, the borrower retains the benefit of the stock's appreciation upon repayment of all interest and principal due.

Domestic and International Exchanges

Almost all exchanges, US and International qualify for loans against securities. The Hong Kong Exchange is eligible but not mainland China.

Loan-to-Value

LTV’s range from 50% to 70%, depending on both the size of the position and the exchange where it is traded.

Terms

Loan terms are from 3 to 5 years with a 12 to 18 month prepayment lock out period. At loan term, there is an option to renew for one additional year.

No Margin Calls

A stock secured loan is not related to purchasing stock on margin, therefore the structure of this loan does not include the use of margin maintenance requirements.

Non-Recourse

The collateral is the only form of recourse in the event of a default of the loan. Should the share price decrease in value, this exit strategy allows the shareholder to either prepay the loan and reclaim their securities or forfeit them and walk away from their monthly interest obligation entirely.

Recourse

For affiliates with large positions, this form of recourse financing provides access to capital in a private transaction without having to sell their securities to market. This results in no quarterly registrations, no limited liquidity, and no loss of upside upon every sale allowing the shareholder access to their true net worth.