Product Highlights
Securities Based Lending
- Below Market Interest Rates - rates on loans presently range from 2.5% and 4.5%.
- High Loan Values – Loan to security value ratios up to 80%.
- Borrower retains all market appreciation opportunity and receives the benefit of any dividend or interest that the securities generate.
- No income and no credit criteria
- This is a Non-Recourse Loan – A loan with no personal liability. A non-recourse loan is secured by some form of collateral, here securities. If there is a default, the borrower keeps the loan proceeds and the lender only claims the collateral. The borrower’s liability is limited to the collateral pledged for the loan. The lender has no right to proceed against the borrower for any deficiency whatsoever.
- Eligible securities include publicly traded stocks, bonds, and mutual funds.
- Loan proceeds generally can be used for any purpose, with one exception, a borrower may do anything with the loan proceeds except purchase or carry marginable securities.
- Prompt response to a loan inquiry, usually within one business day of receiving the security information. Funds can be deposited into the borrowers account in three to five business days once the contract is signed and the transfer takes place.
- Flexible terms at loan maturity. At maturity, the borrower may renew the loan, possibly refinance, or pay off the loan.
