Financial & Investment Group - Security Based Lending

Security Based Lending - (Stock Loan) - The Equity Alternative

A securities based loan is an alternative loan for national or international clients who do not have equity, do not have cash or cannot raise funds to cover due diligence, third party fees and other lender fees and closing costs that are associated with real estate loans. It is also for those borrowers who prefer to use their securities as collateral for a loan that can be used for any purpose, personal or business.

Financing is based on eligible securities, such as publicly traded stocks, bonds, options, mutual funds, treasury notes and medium term notes (MTNs) that can be freely traded and are not restricted in any manner. Low interest fixed rates from 2.5% to 4.5% and up to 80% loan to value (LTV) with terms of 3, 5, 7 or 10 years. The loan is non-recourse meaning there is no personal liability. Closing in as little as 5 to 7 days after application and approval. There is a minimum loan amount of $100,000 with no maximum and the minimum average trading activity on stocks must be $50,000 (average volume times the current share price). Borrowers must have proof of ownership of the securities.

What cannot be used as collateral: 401ks, IRAs or any restricted retirement fund, Money Market Accounts, CDs, Annuities, Gold or Silver Mines, Commodities, Collateralized Mortgage Obligation (CMO's), Bank Guarantees and Warranties, Private Notes or Private Bonds, Bonds that are coming due within 3 years, Bearer Bonds. However these can be converted into cash, then the securities may be purchased and used as collateral.

No personal liability, no upfront fees of any kind, no income verification, no employment verification, no credit report, simple one page application. Close in seven (7) days. Potential clients are those unable to verify income, applicants without assets, the self employed, foreign nationals, condo hotels, condo conversions, unique properties, construction, bad credit and more. Brokers are protected.