LOANS AGAINST
STOCKS & BONDS, CD,
T-BILL,CMO, or
CRYPTO CURRENCY
Loan Terms
Non-Recourse, Short Term Loans using Corporate Bonds, Stocks, CD, T-Bill, CMO, or Crypto Currency
LOCATIONS AVAILABLE:
LOAN LIMITS:
ELIGIBLE COLLATERAL:
LOAN TYPE:
LOAN AMOUNT:
INTEREST RATE:
POINTS:
CLOSING TIMELINE:
UP-FRONT LOAN COSTS:
UP-FRONT 3rd PARTY FEES:
Worldwide*
*This Lender is U.S. based and follows U.S. Laws and transacts only in U.S. Dollars or Euros.
$5 Million USD Minimum - No Maximum
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Corporate Bonds
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Stocks
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CD
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T-Bill
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CMO
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Crypto Currency
Fully non-recourse, Interest-only loan
35% to 60% of the 3-day average trading value of the collateral just prior to closing. All fees and prepaid interest are deducted from loan proceeds at closing, and the Borrower receives the net loan amount.
6% - 8% Interest Only, per annum
6% - 8% *Excluding intermediaries
20 business days
$1,000 Fee requirement to submit the instrument through lender's preliminary due diligence process whereby an independent investigator confirms that the instrument is not fraudulent.
$15,000 Deposit for legal fees to prepare the transaction documents, pay for transaction costs and filing fees.
Upfront Refundable Retainer Fee of approximately $3,500 to $5,000.*
*This program is offered through one of our trusted Arranging Sources
based out of New York City. This source does charge a fully refundable,
up-front Retainer Fee in order to engage the lender that offers this loan
option. This source is A+ rated with the BBB for over 20 years. Their
retainer is 100% refundable if no offer is made by the lender or if the
terms agreed to are different from the terms offered.
Frequently Asked Questions
HOW DOES VALUATION OF THE COLLATERAL WORK?
Borrower must demonstrate to Lender the current as-is market value of the collateral (i.e. "Bid Value"). For financial instruments, it may be possible to secure a bid from a viable bond/stock trading house. A copy of this Bid, or trading value, is provided to Lender, which will then be used to prepare the Term Sheet and subsequent loan documents.
** If a Bid Value cannot be presented by Client, or if the commodity is closely held and not publicly traded, the Lender will regretfully pass on the transaction.
WHAT OPTIONS DO I HAVE AT THE END OF THE LOAN TERM?
Borrower has the right to repurchase the collateral at any time up to one year, for the current loan balance.
Or, the lender can cash-in/sell the collateral to pay off the loan. (Anything received in excess of the loan principal balance is rebated to the borrower without setoff)
CAN I EXTEND THE LOAN?
If the Borrower wants to extend the loan, they may at a cost of next year's interest that will be due, prepaid - no additional points are required.
WHAT WILL THE LENDER REQUIRE?
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Details about the commodity, and copies of any write-ups, appraisals, assays, etc.
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A copy of the ACTUAL instrument, or account statement showing the current holdings for the commodity.
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A Term Sheet will be issued based on items #1 and 2 above, for review and acceptance by Borrower.
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The $1,000 due diligence fee will then be required.
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The $15,000 deposit for legal is sent to the Lender who will then have a Master Loan Agreement, and collateralized loan addenda (drafts) ordered, using all details contained in Term Sheet. (It will take 5 to 1 O days for documents to be completed.)
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Executed Master Loan Agreement and collateralized loan addenda
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A special purpose bank account is then established for this specific transaction (It will be either JPM or WFC per the loan docs).
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Client then receives specific coordinates or instructions on where to deliver the collateral along with the client's copy of the executed Loan Documents.
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Deliver collateral to Lender's bank / vault per the coordinates provided.
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Receiving bank verifies the commodity.
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Loan is Funded (if the size is greater than $25 Million, the loan distributions will tranche every 4 trading days).
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The use and distribution of the Borrower's net loan proceeds is completely managed by the Borrower.