F & Q

What is securities based lending / (AKA) stock loans?
A stock loan is when publicly traded stocks/ securities are pledged for collateral for a loan for any purpose as the collateral that is used for the loan is the actual stocks/securities.

What is a non-recourse stock loan?
A borrower’s credit review or income verification is not required to be approved for a stock loan. Also with a nonrecourse loan, the borrower can walk away from the loan without having to pay back the loan as the only security for the loan pledged is the stocks securities. There is no cross-collateralization like other banks require to fund stock loans.

What is a non-title transfer stock loan?
The stock shares always remain in the borrower’s name for the whole duration of the loan. The borrower will always receive appreciation and dividends from the stock. Most borrowers appreciate this feature.

Why would a company/business want a stock loan?
Having this option to tap into the current value of the stock without having to sell is a very effective strategy. A company has access to low-cost capital to use the financing proceeds to inject back into the business for any reason complete M&A’s or simply have a cash reserve.

How long does a stock loan take to receive loan proceeds?
From the start to the closing date, a typical funding timeline is 4-10 days.

How long are the loan durations?
Loans are from 2 to 10 years depending on the borrower’s timeline requirements.

Where do you lend in the world?
We lend on 80 stock exchanges (& growing) in 195 countries.

What are the LTV’s ?
45-70% depending on the stock.

What are the loan amount requirements?
Minimum amount $1,000,000-$500,000,000 Plus.

What are the interest rates? We offer interest only stock loans, competitive fixed rates between 3.99%-5.99%.

Are they any costs upfront to receive a Term Sheet?
No. We never charge any upfront costs.

Can I receive a stock loan if the shares are not free trading/restricted? No. The shares must be free trading & the borrower must be the signatory authority.

Do I need to provide Income verification, Tax Returns, Financial statements, other collateral to secure the loan?
No. The only collateral is the shares that are being pledged.
There is no cross-collateralization.

We’d love to show you how easy and fast we can get you liquidity from your stocks.