Securities Based Loan Program

Personalized Mortgage Lending


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Securities Based Lending

This type of lending allows the borrower to use their investments to obtain funds for personal or business use. Using investments as collateral the borrower may be able to borrow money at low interest rate financing for up to 10 years which is very much like home insurance that would provide benefits for years to come.

Benefits
- Fixed interest rates between 3% and 5%
- Interest Only quarterly loan payments
- Loan terms of 3, 5, 7, or 10 years
- No closing costs, broker or transaction fees*
- Funds may be used for any purpose including real estate purchase, business expansion, etc**
- Non-Recourse Loan. The loan is only collateralized by the pledged securities - not real estate or other personal property
- Loans available for up to 80% of the securitiesí value
- The borrower keeps all dividends and upside market appreciation of the securities

How It Works
- Loan-to-value ratio and the interest rate are driven by what securities are pledged. The more liquid and actively traded securities the higher the loan-to-value ratio and lower the interest rate.
- 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 or collateral initially pledged is returned to the borrower.
- Default trigger is set at 80% of the loan amount ≠ not 80% of the securitiesí value like typical margin loans. For example: securities value of $1MM, loan of $800k, default trigger would be 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 and the borrower cannot own more than 10% or more in the company of the issuer.
- Retirement funds (401k's, pensions, etc), do not qualify for this program.

Simple Steps
Complete the Simple Quote Form listing the number and name of securities and stock symbol.
We will quickly determine the amount of the loan and the interest rate 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 your stocks, bonds or options. 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 stock or other pledged collateral will be returned to you. It's that simple!

Apply Now

* For loan transactions under $250,000 there is a Loan Administrative Fee.
** Proceeds of the loan may not be used to acquire publicly traded equity securities.


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800.445.3612

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