Realtors, CPAs, LO's...great product to supplement income!!!

Security Based Lending
 
FUNDS AGAINST ALL TYPES OF SECURITIES (Except 401K). WORLDWIDE
 
USE THIS PROGRAM TO REFINANCE A MORTGAGE OR FUND A MAJOR PROJECT. No limit on dollar amount.
Protect Your Stock Portfolio AND Get Cash. Our securities-based loan program allows you to leverage your securities portfolio and offers you protection from market decline without selling your securities.

No Credit Review Required. Since our loan is securities-based, there are no credit or income requirements. In addition, our program allows you to continue to reap the rewards of any appreciation and dividends generated by the pledged securities.

Eligible securities include stocks, bonds, penny stocks, mutual funds, and foreign exchanges.

Here are the program details:

• No Credit Requirements.
• Low Interest Rates: Fixed rate between 2% to 4.5%.
• Terms: From 3 to 10 years.
• LTV: From 35% to 80% of value of asset.
• Non-Recourse: You can walk away anytime.
• It is a Loan, Not a Sale

The program is very flexible. At the end of the term, the loan can be paid off, refinanced, or renewed. You keep all market appreciation and dividends.

You'll get a fast decision: You'll usually receive an answer on your loan within 2 business days of providing your securities information. Once the loan is signed, funds are deposited to your account within 5-7 business days.
 
Basically the loan uses the borrower's securities as collateral.  It's a non purpose loan, meaning the funds can be used for any purpose.  Most often, to fund projects or payoff a commercial note.
 
The interest rates are from 2- 4.5%
Eligible collateral are stocks, bonds, mutual funds, etc.
We cannot lend against hard assets...i.e., land, buildings, etc.
 
The loans are non recourse meaning the borrower can walk away no penalty if the loan falls below the LTV value.  This provides a great opportunity for borrowers to hedge against the market.  Most of my clients are higher level executives with heavy portfolios...This provides them access to capital on their portfolios.
 
 
Last deal:
Client paid off commercial note
Loan amount $30MIL
Interest rate 3.5%
The dividend yield was 4% on the securities that were pledged, rather than making quarterly payments he receives a check for the difference.
 
There are distinct benefits to our securities lending products as they compare with outright stock sales and margin loans and we'd like to outline the benefits and clarify any confusion among these choices.
 
Security Loans
·     Not taxable event
·     Non-Recourse-walk away if stock value drops below LTV value with no liability
·     Up to 80% LTV's
·     No margin calls-protection against stock volatility
·     Loans flexibility-almost any stocks at any price point including penny stocks, restricted stocks and options
·     Benefit from stock growth during loan term-upside potential
·     Low fixed rate loan
·     Privacy - no reporting
·     Flexible unlimited proceed usage-except margin securities
·     Large loan amounts accepted
·     Quick turnaround in funding process
·     Dividends credited towards repayment
 
Margin Loans
·     Non taxable but full recourse loans
·     Subject to margin call if stock price falls-subject to stock volatility
·     50% LTV maximum-government regulated
·     Higher variable interest rates in most cases
·     Highly regulated use of proceeds
·     Accessibility of funds thru "cash out" can be difficult
 
Stock Sale
·     Taxable event
·     No future growth in stock available
·     SEC reported in case of restricted stock
·     Public knowledge of sales in some cases with officers and major stockholders
For future reference...

Hong Kong shares are fine (H shares). Tokyo works. Australia, Malaysia, and Singapore work. If the stock is solely traded on mainland China exchange (Shanghai) we can not do it at this time. If it is dual listed on the Hong Kong exchange it does work. We've seen a lot of activity out of Tokyo lately--apparently it is very tough to get a traditional margin loan so we are seeing that business.
 These are the exchanges that don't work:
Shanghai
Korea
Vietnam
India
Bombay
 
 
 
I know it's a lot...Hope this helps!  If you have any prospects you want me to look at please fill out the inquiry sheet.  I can get a term sheet out in 24 hrs.