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Hedge current
portfolio positions and gain access to capital
resources through loans against free trading,
aged affiliate or restricted securities.
Make proper use of your assets while waiting for
performance, and hedge your position should the
asset move against you.
We will secure a
non-recourse, no margin call stock loan for 40%
- 80% of your stock's position value.
Whether you need to borrow cash for personal or
business purposes, these loans against stock can
be funded within as little as five business days
and are available to affiliates, non-affiliates
and common shareholders of publicly traded
companies on the U.S. exchanges, as well
as other major foreign exchanges. Big
Board or Large Cap stockholders are usually
eligible for high LTV's, while Small to Mid-Cap
stockholders can receive respectable LTV's based
on exchange, price and liquidity. With all
of our stock loans there are no out-of-pocket
expenses or up front fees.
The word "loan" is
typically synonymous with debt. This type of
financing differs from other methods as it
alleviates the risks associated with traditional
lending. As well as personal liability
associated with debt. In fact, as long as
a borrow has the right to walk away from
the loan, can you really call this debt?
A non-recourse
stock loan is a strategic "hedging tool" for
individuals, as well as an essential capital
raising instrument for corporations. Where
you obtain a non-recourse stock loan, you are
mitigating your risk by:
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Taking all or a portion of your cash off the
table today
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Protecting yourself today against market
downturn tomorrow
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Benefiting from upside appreciation of the
asset
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Retaining contractual ownership of the stock
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Bearing no margin maintenance requirements
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Receiving interest rates lower than most
margin accounts, bank loans or bond issues
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Deferring, reducing and in some cases
eliminating various tax consequences
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Avoiding unwanted "back
to market pressure" (typically associated
with corporate financing)
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Buffering the need for traditional Bank
recourse financing
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