The first stock loan in the country to allow immediate (2 day) funding where the stocks stay in the client’s own account, own name, and never move and are never traded. A simple lien on the account is all it takes.
Enjoy all the stock loan features you´ve come to expect, including nonrecourse freedom to forfeit shares and owe nothing more to lender; all appreciation goes to the borrower; prepayment anytime without a penny of penalty; immediate return of shares by simply removing the lien; account statements direct from your brokerage; no margin calls for any reason; low interest rates from 4% to 8%; dividends passing through directly to the borrower; and full voting rights. Need more cash if the stocks rise while held in your account? No problem with a new generation stock loan program. Simply ask to to have the stock loan rewritten to get the extra cash that the collateral stocks represent. Done. And all that in borrower’s full sight in his own account.
Stocks never move, are never traded. All of the appreciation to the borrower. Walkaway and owe nothing, no negative credit rating. And if you want to prepay to unfreeze your stocks if they start going up (perhaps because you’d now like to sell them?) – no problem. Pay them off and the stocks are yours typically within hours if during normal brokerage operating hours.
For now you’ll need at least $2M in stocks. However, we expect this to come down to as low as $100,000 shortly. Though we cannot and will not claim any tax advantages for this, the truth is that the stocks stay in the client’s own account, and no sale occurs whatsoever. This alone may be of interest to the borrower’s tax advisors.