INTERNATIONAL STOCK LOANS from USD 1 Million
Lending Area: International
NO UPFRONT FEES We also do BLOCK STOCK Purchases (OTC too!)
Is your firm a listed public stock company or are you an stock investor and need access to inexpensive and secure financing? Securities-based financing is a low cost option to consider for any reason. The benefit of getting a stock loan with us versus your stock broker is that your loan is non-recourse, which means that you never get a margin call when your stock decreases in value.
Stock loans are securities-based loans where the terms of the loan are governed by a "Securities Lending Agreement," also know as the Control Agreement, which requires that the borrower provide the lender with collateral, in the form of stock or other securities, of value equal to or greater than the loaned securities plus an agreed upon margin, and the stock is pledged as collateral for the loan.
In most countries, you retain ownership of your stock that is held in your own brokerage account, so that you continue to receive dividends and benefit from capital appreciation until the loan matures assuming the stock price rises; however, should the share price fall in value, you have the option to walk away from your loan with no further obligations.
So, you can either:
1) regain control of your stock by paying off the loan, or
2) if the value of the pledged stock has 'fallen below' the amount you owe (including interest), you can simply walk away from the loan and only forfeit your stock; the lender cannot try to recover any of the loan amount or interest from you, and your credit rating is not affected.
- Approvals: same day or within 24 hours
- Arranger Fee: 2 pts to 6 pts, paid at closing from loan proceeds; most loans are at 4 pts
- Interest Rate: range from 1% to 8% depending on the liquidity and risk involved. Most loans are 3% to 5%
- Lender: direct lenders (private investment groups, high net worth individuals, and endowments)
- Loan-to-Value (LTV): 40% to 90%, usually 50-75%
- Loan Amount: from USD $1 million
- Non-Recourse: the company stock is the only security
- Payments: interest only, paid in advance (monthly or quarterly)
- Prepayment Penalty: borrower may not prepay the loan for a minimum of 18 months
- Processing Time: loan can close in 5-7 days depending on the speed at which the borrower reviews/returns the documents
- Repayment Term: 2-3 years. Most loans are 3 years (see also Prepayment Penalty).
- Stock Type: public exchange traded only, freely traded, and unrestricted
- Market Capitalization: minimum around 100 million
- Trading Volume: average trading volume (in USD) for last 4 weeks must be equal or greater than loan amount.
OTC: minimum trading volume, $3,000/day. Stock is eligible for block sale after 2 weeks of being listed.
FOR LOAN/SALE APPROVAL (Less than 24 Hours)
Please Provide: (email here)
1) stock symbol:
2) exchange traded on:
3) loan amount (or # shares available):
Time frame for funding is normally 5-7 days.