Dentists, Use Your Stocks As Collateral and Borrow Money With Terms Up To 10 Years.
- Stock Loans Interest Rates Between 2.5% and 4.5% - Fixed!
- Stock Loans No Points or Closing costs!
- Stock Loans Aggressive LTV Up To 80%!
- Stock Loans No Credit History and Income Required!
- Stock Loans Interest-Only Quarterly Loan Payments!
- Stock Loans Funds For Any Purpose!
- Stock Loans Fast Close - Matter of Days!
- Stock Loans Receive All Dividends and Upside Market Appreciation!
- Stock Loans Loan Terms of 3, 5, 7, or 10 Years!
- Stock Loans Non-Recourse Loan, No Collateral Except The Pledged Securities!
How It Works:
- Securities information is provided from the borrower. (A recent monthly statement works best.)
- The loan-to-value ratio and the interest rate are determined by what securities are pledged. The more liquid and actively the traded securities are the higher the loan-to-value ratio and the lower the rate.
- Term Sheet/Loan Commitment is then issued.
- Borrower reviews and approves the Term Sheet/Loan Commitment.
- Conference call is placed to answer any questions.
- The Pledge Agreement and Contract are forwarded to the borrower for signatures.
- The securities are then transferred to the lenders brokerage account.
- Lender tracks the closing price of the shares for 3 days to obtain an average price.
- The loan is then disbursed based upon the loan-to-value previously agreed upon.
- Borrower makes Interest-Only quarterly payments.
- During the loan term prepayment of the loan is not allowed.
- Dividends from the securities is credited to the quarterly interest-only loan payment first and any excess is returned to the borrower.
- Default trigger is set at 80% of the loan amount not 80% of the securities value like typical margin loans. For example: securities value of $1MM, loan of $800k, default trigger at $640k (80% of the loan amount). If the securities value fell below $640k the borrower could walk away from the obligation of repayment of the loan and keep the original loan proceeds ($800k) or contribute cash or securities to bring the value back up to $640k. The borrower would forfeit the collateral. Unlike margin loans this is a non-recourse loan so there is no personal liability should a default on the loan occur.
- At the end of the term the loan is paid in full and the shares are returned to the borrower.
- The loan may also be extended or refinanced.
The time frame for funding may be as little as 5-7 days.
- Publicly and Actively Traded Stocks!
- Mutual Funds!
- Treasury Notes (Not Restricted)
- Most Foreign Securities Acceptable.
What Can Not Be Used As Collateral:
- Retirement Funds!
- 401(k)'s, IRA's or Restricted Retirement Funds!
- Money Market Accounts!
- Gold or Silver Mines!
- Bank Guarantees or Warranties!
- Private Notes or Private Bonds!
- Bonds Coming Due Within 3 Years!
- Bearer Bonds!
- Minimum Loan Amount $100,000
- Minimum Loan Term 3 years
- Minimum average trading activity on stocks must be $50,000 per day. (Average volume x current share price.)
- Borrower must have proof of ownership of the securities.
No Credit History, No Income, No Employment, No Intended Use Of Funds!