(Flag Loan,
85% LTV stock loan variant offering strong security, ten-year track
record, low borrower cost, and and full upside participation)
Underwriting Requirements
NYSE, AMEX, NASDAQ NMS, NASDAQ small cap, OTC Bulletin Board, some OTC Pink Sheets, and most foreign shares.
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Average Daily Volume
$50,000 or greater. Multiply the average 4-9-week volume times current bid price to obtain this figure.
Features / Benefits:
Interest Rate range:
8.25% - 8.75% (CAP); 9.8-13% (FLAG).
LTV of 85% for both Flag Loan and Cap Loan
Retire margin debt, buy a property, expand a business and get more cash
with rates of 85% (90% LTV in special cases) against your stock,
instead of the standard 50% offered in margin accounts.
Non-Callable.
These loans cannot be called for any reason, regardless of how low prices drop.
Available Internationally
Eligible exchanges in the UK, Australia, Korea, and Japan. Creative, locality-specific solutions.
Lower Rates with a Cap
Cap the upside growth on your portfolio beyond a specific percent while
we hold it as collateral, and get a lower interest rate in return with
the same 85% cash. If you think your stock's price will stay stable or
decline during the loan term, a Cap Loan may be perfect for you.
Limited Recourse Should You Default
If your stock depreciates you have the choice to default without
attachment of other assets or any negative effect on your credit rating
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All the Growth in Portfolio is Yours
Choose a Flag Loan
if you expect the stock price to rise dramatically during the loan
term. Take advantage of bargain investments in the market while knowing
you remain invested in the upside future of your portfolio. Or get some
of the upside with a Cap Loan and trade if off for a lower interest rate. The choice is yours.
Cut Your Interest with Dividends
Apply your dividends when issued to your loan's accrued interest and owe less.
Pay Quarterly or Let It Accrue
Choose
how you want to service the loan based on your personal cash flow
situation. Take a balloon payment at the end if you feel it will be
worth more at maturity, or pay quarterly and owe only the principal at
maturity. Just let us know.
Low Cost to Borrower
Points only, paid from loan proceeds; zero out-of-pocket or up-front
expenses. Structured to ensure your cash-in-hand and payback
preferences are always met.
Quarterly Account Statements
Receive comprehensive quarterly account statements to monitor the
performance of your asset versus your obligation, Remain informed
throughout your loan.
Multiple Exit Choice
Ask
us to sell some of the stock to pay off the loan; or walk away form
repayment by exercising the nonrecourse provision. If your stock has
appreciated in value over the loan term, consider a rollover --
renewing your loan on the same or even new terms adjusted to your
preferences for a nominal fee.
We're ready to discuss our core Structured Securities Loan programs, as well as the many variants and features, with you today.
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