If you need money to complete your development project or acquire a distressed asset for pennies on the dollar and you own securities (stocks, bonds, mutual funds and other securities) you or your client should consider a securities loan. Distressed assets are trading for pennies on the dollar and if you have the experience to manage and stabilize them then why not borrow against your securities to acquire them? Most people borrow against the home they live in. And they borrow against their business property. And against the car they drive. So why not borrow against your securities especially since the terms are so good?
Benefits Of a Securities Loan:
- Interest rates between 4.0% and 6.0% - Fixed Interest Only
- No credit or FICO requirements €" In fact, you should not be asked for your credit score at all
- No minimum income requirements -
- Interest-only loan payments
- No upfront, application or due diligence fees
- Funds may be used for any purpose, personal or business use, including real estate purchase, business expansion, etc.
- No personal guarantee (a non-recourse loan). The loan is collateralized by the pledged securities only - not by real estate and not by other personal property
- No residency or citizenship requirements - foreign nationals qualify for this loan - world-wide
- Stocks held in some foreign stock exchanges qualify - call for details
- Close in a matter of days
- Minimum loan size - $500,000 - no maximum
- Terms of 3, 5, 7, or 10 years
- Borrower keeps all dividends and upside market appreciation of the securities
Securities Backed Lending may be the funding solution you've been looking for!
Remember, this type of non recourse lending allows the borrower to use their investments to obtain funds for personal or business use. Using your investments as collateral you are able to borrow money with low interest rate financing.