STOCK LOANS and SECURITIES FINANCING

Securities Financing Stock Loan Stock LoansPlatinum Global Bridging Finance provides stock loans and securities financing funding through our panel of loan providers we have formed close relationships with. We can offer various investment and loan structures to release monies from your existing portfolio in as little as 7 to 14 days. We mainly recommend off market private lending institutions with access to capital from investment funds and high net worth lending pools not available on the open lending market. Our lenders range from Banks, Investment Banks, Private Family Offices, Financial Institutions, Private Institutions, Asset Managers, Hedge Fund Lenders, Specialist Stock Lenders all the way through to High Net Worth Private Individuals that can take a specialist view upon low volume traded stocks.

Our diverse lending panel is based around the globe in Europe, United Kingdom, South America, South Africa, Hong Kong, Malaysia, Thailand, Singapore, USA, and Asia. We cover all lending markets globally and can secure the best lending terms for our securities financing clients. We cover most types of securities financing, stock margin loans, Non Recourse Stock Loans, Repos (share repurchase agreements), Block Trades, Crypto Loans and our lenders can also look to loan against tradeable corporate bonds and other stock market tradeable instruments. If your financial product has an identifiable International Securities Identification Number (ISIN) code we can look for lending terms for you from our range of lenders. Loans are also known as securities based loans or  securities backed loans in the financial loan lending business. We help businesses release equity via public company loans, private loans, single stock loan, publicly traded loans, public exchange traded loans and stock secured loan.

Multiple Benefits of Securities Financing and Stock Loans

  • Obtain Liquidity Fast
  • Protect yourself from market volatility
  • Simple, fixed interest rates from 2.5%
  • Non-recourse loans and margin loans
  • Fast, easy and transparent Process
  • No upfront or hidden fees. Fees deducted from loan proceeds
  • No credit checks
  • No Personal Guarantees
  • 100% Privacy Guarantee
  • Flexibility in the use of your money
  • Competitive Loan to Values. From 45% up to 80% LTV
  • Quick closing and Funding within 10 days or less
  • Can loan on recent IPO stock issues no problem
  • Loans available on OTC stocks, OTCQX, OTCQB, OTC Bulletin Board OTCBB and OTC Pink Sheet markets. And also on  Alternative Investment Market AIM Stocks listed on the London Stock Exchange.
  • We have buyers ready for OTC listed stocks, OTCQX, OTCQB, OTC Bulletin Board OTCBB and OTC Pink Sheet markets
  • Our lenders offer loan transactions with rehypothecation and non-rehypothecation offering the client more loan options

What Is Securities Financing?

We help with capitalization through the release of a portfolio investment such as a securities non recourse loan, or other liquidity funding such as a stock financing transaction allows owners of publicly traded stock the flexibility to gain access to the locked up value of their freely traded stock position. The stock transaction program is designed specifically for corporations, its employees, officers and major holders of publicly traded companies while providing total privacy to our clients. Our goal is to help you obtain the best financing structures possible in today’s marketplace. If you’ve never considered a financial loan, share financing, or the unique proprietary forms of capitalization that will put liquidity in your pocket, we can help you understand how your liquidity options work with a pledged share plan.

We always go the extra mile to get you the best rates, lowest fees, and terms you deserve for your securities borrowing and lending.

How Long Does It Take To Secure Securities Finance and Stock Loans?

Our unique position with links to a number of securities lenders providers means we collaborate with owners of publicly traded stock on the terms of each and every stock lending financing transaction. Our process is quick, transparent and completely confidential. Financing proceeds can be used for personal or business purposes, or to diversify or hedge current stock positions. Funding is quick with a transaction closing in as little as 3 to 7 business days. Same day funding is available contact us to find out more.

What Are the Securities Financing and Stock Loan Amounts?

We can provide recourse and non recourse loans from $100,000 to $2bn USD through our network of private institutions. We do require the stocks being financed to have a minimum turnover but we do work with several securities financing houses that offer the lowest stock turnover in the business.

Terms of providing you with liquidity and funding are based on evaluation of the risk and future performance associated with the securities involved in the transaction. The term of the transaction is typically 3 to 5  years, with Interest payments or Maintenance Fees on quarterly or semi-annual bases. Our stock financing and provision of liquidity are interest only, or accompanied by modest Maintenance Fees, and additionally, are non-recourse. The recipient of funding has the option of simply walking away at any time with no further liability and no personal or corporate guarantees.

In the event of a default, our stocks and securities lenders do not report to any credit bureaus or governmental agencies, nor do we file any public notice. There is no adverse consequence to the client’s credit.

Due to the unique tax and legal issues involved with transactions involving publicly traded stock, anyone considering alternative financing should consult both tax and legal counsel.

Many people ask what are securities in finance? Securities in finance are essential so investors can access the stock market and invest for the longer term while hoping they can make a profit from their stocks rising. Its important to have an investment plan and portfolio risk assessment so that you have a target to aim for.

Securities Financing and Stock Loan Process

  • Capital Recipient (or “client”) submits inquiry for funding by providing a stock symbol or stock code and target transaction amount.
  • We determine the viability of the transaction, and calculates a maximum transaction amount, relative to the value of the stock and an interest rate, or Maintenance Fee, based on an assessment of both short and long term risks.
  • We issue a term sheet to client to review.
  • Terms are negotiated and finalized.
  • We send contract documents to client for review.
  • Final contract is negotiated and signed.
  • Both parties coordinate a delivery date with their respective brokerage.
  • Transaction is funded normally 3 to 7 days.
  • Stock transaction can be funded with 1 day in extreme situations.

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What Is A Non-Recourse Stock Loan?  Non Recourse Stock Loan

A non-recourse stock loan also known as collateral loans is a type of loan that uses shares in a publicly-traded company to secure the loan. It is an excellent way for individuals and business owners to tap into the value of their stock easily and quickly without having to wait too long for the money.

Securities based lending can be a critical financing source for entrepreneurs and can be used by companies or people to raise much needed financing. A securities loan is a resource they can quickly access to fund business operations.

The loan amount is determined by a loan to value (LTV) ratio which means the loan amount may be equal to 50% of the value of the shares needed to secure the loan.

In addition to other criteria, the maximum loan amount available to a borrower depends on:

  • Market conditions
  • Average trading volume
  • Historical stock price and volume performance
  • Total number of shared owned
  • Total stock market capital
  • Market sector

Why Would Someone Want A Non Recourse Stock Loan?

The ability to convert a majority of the current market value of securities into cash without selling them outright is an attractive option for many shareholders. With that value unlocked from their shares, individuals and business owners can get the liquidity they need with ease and without visiting the bank. Using asset backed lenders that can lend against stocks and securities is an ideal way to access liquidity fast and at low interest rates.

What Are The Benefits of A Non Recourse Stock Loan?

  • Liquidity –  Loans are a fantastic option when an individual or business owner needs a quick financing option. It turns equity into cash with ease.
  • Interest-only – No ambiguous or hidden charges; loans are an interest-only, transparent loan option. There are no never-ending charges that seem to extend the credit unnecessarily.
  • Accessible –  Loans are available to almost anyone. You don’t need a credit check to access one for your individual or business needs. The process is painless and straightforward, and your money is delivered to you most conveniently.
  • Privacy – It provides borrowers with a trustworthy source of capital. All transactions are private and kept in strict confidence.
  • Competitive – Global loans offer you competitive and flexible interest rates. You typically receive better terms than you would get from a traditional marginal loan.

Re-Cap of Benefits Of A Non Recourse Stock Loan

There are a number of key advantages to using funding of an equities related transaction from our stock lenders.

  • Fast transaction & funding
  • Non-recourse
  • No personal or Corporate guarantee.
  • Fast and easy loan closing.
  • No credit reporting in the event of a default
  • Private & confidential
  • Quick closing offering the ideal loan solutions.
  • Reduce the need for traditional bank recourse financing
  • No out-of-pocket expenses or up front fees
  • Low interest rates or Maintenance Fees
  • Fair share pricing using a three, five day or 30 day average
  • Flexible terms
  • Large transaction amounts accepted no problem
  • Minimum lending USD100,000
  • No maximum lending

Loan Against Securities Portfolio

For clients that hold existing stocks and share portfolios our lenders give you the ability to be able to release equity against the current portfolio balance. Portfolio lenders can allow a loan against securities portfolio so the client can use these funds for a range of other personal or investment purposes such as buying assets like property or even boats. The advantage of taking a stock secured loan rather than sell the shares can be that the shares have long term growth value and selling them the client loses out on the long term growth. Another advantage with taking a stock secured loan is that as you are not selling the shares then no tax is paid on any previous capital gains. In many countries capital gains tax is paid upon the sale of any stocks that have made material gains whilst the client has held the shares. The criteria is the same also for any loans against stocks

To obtain a loan against shares you can see the lending criteria below.

  • Minimum finance from USD100,000 for a securities based loan. Can finance lower lending amounts if shares are highly liquid and blue chip on major stock exchanges.
  • Loan to value up to 50% for blue chip portfolios. Portfolio value ideally USD500k but can be lower with liquid stocks
  • Alternative Investment Market (AIM) and OTC stocks and portfolios considered on highly liquid stocks
  • Acceptable securities blue chip shares on any exchange and highly liquid
  • Loans can be drawn down in GBP Sterling, Euro & US Dollar
  • Custody can remain with 3rd party
  • Margin loan with recourse ( NON title transfer )
  • Term Up To: 36 months ( early repayment allowed with full loan interests payable )
  • Loan rates from : 5% pa fixed
  • Interest servicing monthly after 1st year .

Why Work With Platinum Global?

UNPARALLELED PROFESSIONALISM

Our professionalism is formed on a foundation of knowledge gained through our broad international presence and experience developed through our services in global financial markets.

PERFORMANCE AND BENCHMARKS

Our consultants and financial advisors demonstrate a strong performance record in services for our ultra high net worth individuals and institutional clients, but they are
never content to rely on that record. Rather, they have established that record as a benchmark that is to be met and exceeded in all advisory and management services for individuals and corporate entities.

A COMPLETE SLATE OF SERVICES

We provide the highest quality of services under the aegis of a single entity. Our full-service capabilities offer superior coordination of investment advice, execution, reporting, and administration with an optimum fee structure that reduces duplication and service conflicts.

NATIONAL AND INTERNATIONAL NETWORK

Our consultants and advisors maintain relationships with key opinion leaders in both global and private financial institutions in North America, Europe and throughout the countries of Southeast Asia. We have access to worldwide securities lending  and worldwide loans with banks, family offices, ultra high net worth individuals, private institutions and many more lenders at our disposal.

24/7 – 365 SERVICES AND SUPPORT

Modern global investment markets operate around the clock. Our clients receive continuous support from our consultants and advisors on an everyday and at all times basis to verify timely execution of transactions and administration of services.

CONFIDENTIALITY AND PRIVACY

Our advisors and consultants maintain strict independence that enables them to consider the client’s financial goals above all else. We adhere to the strictest financial and
securities services regulations of professional financial regulatory bodies in the geographic markets and territories that we serve.

OUR INTERNATIONAL AND FINANCIAL NETWORK

Through our participation in multiple global debt and equity transactions, we have forged alliances with many of the top international investment and commercial banks. These alliances give our advisors and consultants access to transactions and expertise that they can then use to deliver superior financial advice and asset management services.

WHY USE A SECURITIES BASED LOAN?

 MOST STOCK’S QUALIFY WITH OUR UNIQUE LOAN PROGRAMS

☑ NO Personal Guarantee!

☑ NO Credit Review!

☑ NO Personal Income!

☑ NO Personal Tax Returns required!

☑ NO Business Income and NO Business Tax returns required to get a loan!

☑ You can reap 100% of all the rewards of any appreciation and dividends!

☑ We can loan you up to 70% of the value of your securities with no recourse!

☑ Low Fixed Interest Rate As Low As 2.5%!

THE SECURITIES LOAN BROKER YOU CAN TRUST

Our Specialty:

  • Loans Against Securities
  • Stock Based Loans
  • Block Trades
  • Corporate Bond Loans
  • Stock Portfolio Loans
  • Providing you loans for large and small cap stocks.
  • Closing your loan quickly and efficiently.
  • Helping you mitigate your portfolio risk through diversification.
  • Providing you with liquidity.
  • Offering flexible pledged share loan packages tailored to your individual needs.
  • Securing competitive interest rates.
  • Providing you your personal account executive to walk you through the process.
  • We speak to over 15 stock lenders on your behalf securing the most ideal loans.
  • We use private lenders which means you enjoy privacy and no releasing details of any loans you take.
  • Never any upfront fees. You pay on success of receiving the loan just before disbursement of funds.
  • Borrowed money can be used for any purpose.

Our loans offer a variety of benefits compared to some other types of loans. Some of the benefits of securities-based lending include:

  • Competitive interest rates on eligible securities
  • Freedom from personal guarantees
  • Non recourse stock loan. Client can simply walk away.
  • No personal loan only based on securities pledged
  • Top tier financial institution
  • No credit score check required
  • 30% to 40% Stock margin requirement
  • Share custodian brokerage account can be set up
  • Fast liquidity
  • Should borrower default. Lender simply sells the stock shares.
  • Competitive interest rates: With this type of loan, you can receive a more competitive interest rate than you would with a traditional loan. For those looking for reasonable interest rates with the potential for high loan amounts, this type of lending is a good choice.

Freedom from personal guarantees: Some lenders may have you pledge critical personal items as security, such as your car or your home, for example.

No credit check required: With most securities loans, an intensive credit check isn’t required for you to qualify. This makes them more accessible. With our team, you won’t have to worry about passing a credit check to participate in this type of lending.

Fast liquidity: This type of lending is also useful when it comes to fast liquidity. We can close your loan in as little as 48 hours and provide you with the necessary funds.

If the market is down, sometimes access to this type of loan may feel restricted. The amount of money you can receive for a loan will depend on how the market is doing. Your loan amount may also depend on factors like the number of shares, price, and current trading volumes.

We can help you navigate the landscape and get you set up with reasonable loan terms. We understand all the factors that go into this type of lending. We also know how to keep up with the changing landscape.

PUT OUR EXPERIENCE ON YOUR SIDE

As the premier stock loan broker with over 6 years of share loan experience we guarantee effective and comprehensive stock transaction for you or your business. Our reputation and history of successful transactions and clients speak for themselves. We pride ourselves in helping our clients – large or small, obtain streamlined financing even in today’s economy. We lend on most stock markets. We work with all types of asset based lenders that can provide the best loans at the lowest interest rates.

Let’s face it, Liquidity is king. So why would you not put your shares to work? Our loans are not only fast but they are safe, being that they are non recourse which is so important in this ever changing stock market. Its always advantages for client to be able to access securities loan funding when they are looking for available options when lending stocks.

 

Our Clients

Family Asset Management

We fund Family offices clients stocks to help them with solutions to finance investments, purchases, and cash flow.

Publicly Traded Companies

We help companies source efficient, cash flow and shareholder-friendly capital for any business need they require.

Executives, Directors, Board Members

We fund key persons in publicly traded companies to liberate capital in their primary company shareholdings while retaining their ownership of shares.

Personal Stock Holders

We work with personal clients and  assist them in optimizing their investments while meeting their cash flow needs.

Stock Exchanges We Cover

Hong Kong

Stock Loans Hong Kong
Stock Loans Hong Kong

Singapore

Singapore Stock Loans
Singapore Stock Loans

NORTH AMERICAN STOCK EXCHANGES

  • Alberta Stock Exchange, Canada
  • Montreal Stock Exchange, Canada
  • Toronto Stock Exchange, Canada
  • Vancouver Stock Exchange, Canada
  • Winnipeg Stock Exchange, Canada
  • Canadian Stock Market Reports, Canada
  • Canada Stockwatch, Canada
  • AMEX, United States
  • New York Stock Exchange (NYSE),United States
  • NASDAQ, United States
  • The Arizona Stock Exchange, United States
  • Chicago Stock Exchange, United States
  • Chicago Board Options Exchange, United States
  • Chicago Board of Trade, United States
  • Chicago Mercantile Exchange, United States
  • Kansas City Board of Trade, United States
  • Minneapolis Grain Exchange, United States
  • Philadelphia Stock Exchange, United States

ASIAN STOCK EXCHANGES

  • Sydney Futures Exchange, Australia
  • Shenzhen Stock Exchange, China
  • National Stock Exchange of India,India
  • Bombay Stock Exchange, India
  • Jakarta Stock Exchange, Indonesia
  • Indonesia NET Exchange,Indonesia
  • Nagoya Stock Exchange,Japan
  • Osaka Securities Exchange, Japan
  • Tokyo Grain Exchange, Japan
  • Tokyo International Financial Futures Exchange (TIFFE), Japan
  • Tokyo Stock Exchange, Japan
  • Korea Stock Exchange, Korea
  • Kuala Lumpur Stock Exchange, Malaysia
  • New Zealand Stock Exchange, New Zealand
  • Karachi Stock Exchange, Pakistan
  • Lahore Stock Exchange, Pakistan
  • Singapore International Monetary Exchange Ltd. (SIMEX), Singapore
  • Taiwan Stock Exchange, Taiwan
  • The Stock Exchange of Thailand, Thailand

EUROPEAN STOCK EXCHANGES

  • EASDAQ, Belgium
  • Zagreb Stock Exchange, Croatia
  • Helsinki Stock Exchange, Finland
  • Paris Stock Exchange, France
  • LesEchos: 30-minute delayed prices, France
  • MATIF, France
  • Frankfurt Stock Exchange, Germany
  • Athens Stock Exchange, Greece
  • Budapest Stock Exchange, Hungary
  • Italian Stock Exchange, Italy
  • Macedonian Stock Exchange, Macedonia
  • Russian Securities Market News, Russia
  • Ljubljana Stock Exchange,Inc., Slovenia
  • Barcelona Stock Exchange, Spain
  • Madrid Stock Exchange, Spain
  • MEFF: (Spanish Financial Futures & Options Exchange), Spain
  • Stockholm Stock Exchange, Sweden
  • Swiss Exchange, Switzerland
  • Istanbul Stock Exchange, Turkey

SOUTH AMERICAN STOCK EXCHANGES

  • Chile Electronic Stock Exchange, Chile
  • Santiago Stock Exchange, Chile
  • Bogota stock exchange, Colombia
  • Nicaraguan Stock Exchange, Nicaragua
  • Trinidad and Tobago Stock Exchange, Trinidad and Tobago
  • Caracas Stock Exchange, Venezuela
  • Venezuela Electronic Stock Exchange, Venezuela
  • Colombia Stock Exchange
  • Lima Stock Exchange
  • Mexican Stock Exchange
  • Santiago Stock Exchange
  • Bolivian Stock Exchange
  • Buenos Aires Stock Exchange
  • Bolsa de Comercio de Bahía Blanca
  • Mercado Abierto Electrónico

AFRICAN STOCK EXCHANGES

  • The South African Futures Exchange(SAFEX), South Africa
  • Lusaka Securities Exchange
  • Ghana Stock Exchange
  • Malawi Stock Exchange
  • Johannesburg Stock Exchange
  • Stock Exchange of Mauritius
  • Casablanca Stock Exchange
  • The Egyptian Exchange
  • Nairobi Securities Exchange
  • Nigerian Exchange Group
  • Dar es Salaam Stock Exchange

MIDDLE EASTERN STOCK EXCHANGES

  • Tel Aviv Stock Exchange, Israel
  • Beirut Stock Exchange, Lebanon
  • Palestine Securities Exchange, Palestine
  • Istanbul Stock Exhange, Turkey
  • Abu Dhabi Securities Exchange
  • Bahrain Stock Exchange
  • Bahrain Financial Exchange
  • Cyprus Stock Exchange
  • Dubai Financial Market
  • Dubai Gold and Commodities Exchange
  • Tehran Stock Exchange
  • Iraq Stock Exchange
  • Amman Stock Exchange
  • NASDAQ Dubai
  • Kuwait Stock Exchange
  • Malta Stock Exchange
  • Muscat Securities Market
  • Qatar Exchange
  • Saudi Stock Market
  • Damascus Securities Exchange

NON-RECOURSE

Loans offer you the flexibility of being able to walk away from the loan at any time without hurting your credit rating or having to bring in additional collateral or cash like you do with traditional margin loans. No personal guarantee is required for our securities backed loans.

NO CREDIT CHECK REQUIRED

We are a direct lender and the loan is only secured by the stock portfolio. Our loan packages are all under-written in-house so you communicate directly with the lender and receive personalized service and attention to detail.

COMPETITIVE (LTV) RATIO

The loan to value we offer is based on market conditions, market sector, historical stock performance, and anticipated future stock performance. Typical LTV ratios range from 45-65%.

FAST CLOSING AND FUNDING

Since our loans are underwritten in-house, we can get to closing quickly and fund your loan within 3-7 business days. Your funds will be wired directly into your bank account. Most lenders in this space have anticipated closing times of 2-3 weeks.

LOW RATES AND FLEXIBLE TERMS

We offer competitive rates based on the current prime interest rate and loan terms of 12, 24, and 36 months. Since rates can change, we encourage you to start the application process as soon as possible so we can lock you into the best rate.

PRIVATE AND CONFIDENTIAL

Your transaction is completely private and confidential. All information regarding your loan is stored securely in our processing center, and only we have access to the details of your loan.

Frequently Asked Question’s

Since the credit crunch of 2007, traditional lending for small companies has declined significantly. Banks now do not have the appetite to lend out money. This is due to minimum solvency requirements imposed on the banking sector. This has significantly restricted the flow of capital. Banks have responded by concentrating their lending to larger cap corporations, to the detriment of other businesses. When banks lend to small cap companies they require more security and higher rates. Consequently, a number of other financial solutions have arisen which aims to bridge this funding gap. One area that has grown significantly in recent years for listed companies is non-recourse loans. Surprisingly, many financial directors are still not that familiar with this important area of finance. This email aims to give a basic overview of Non-Recourse Loans, explaining what they are, how they work, along with their advantages and limitations.

 A Non-Recourse Loan is simply pledging security of the company in the form of ordinary shares to receive a company loan. This type of loan does not require director guarantees so the risk is solely the Company’s. A lender will agree to lend against this stock security. Like all lending, the more security pledged in comparison to the size of the loan, the less risk to the lender. Similarly, the higher trading volume or liquidity of the stock results in less risk to the lender as they can sell their holding should the Company breach the rules of the lending agreement. Non-Recourse Loans by definition is a loan against the value of a stock or portfolio of stocks whereby the shareholder (OWNER) can borrow up to 80% of the stock value (in some cases higher) of the portfolio’s market value “without selling the shares“.  Like a home equity loan for stocks but much better, you borrow against the appraised value of the portfolio, pay a below prime interest rate for the term of the loan and then at term end, you either pay off the loan and receive your stock back with any stock appreciation, refinance the loan or, if the stock price has fallen below the LTV amount, forfeit the shares without paying back the loan (non-recourse) with no liability or effect on your credit rating.

 The first stage is the borrower will outline their lending needs. This will result in a Draft Term Sheet assuming that a deal can be reached. This Draft term sheet will include an overview of the loan, including the size of the loan, it’s duration, the interest rate, the Loan-to-Valuation (LTV), fees, and the security pledged. This draft term sheet will also include default situations along with remedies and certain liquidity requirements. The lender will stipulate how and when funding will be completed.

Assuming that the potential borrower is happy with the terms of the loan, a Definitive Loan Agreement will be delivered for signature by both parties. Once a formal contract has been entered into (Controlled Agreement), the borrower is required to establish a Securities Account with the Lender’s specified broker to hold the Security in electronic format. When the Lender receives notification that the security has been deposited and cleared, the Lender will remit funds. The Lender is required to wire funds within five working days after confirmation of delivery and clearance of Pledged Securities. It is important for the borrower to understand that the lender is not selling these shares and does not have ownership of them. These shares stay in the Company’s name and the Lender does not have access to the Custodial account unless a default occurs and both parties cannot find a suitable compromise. The specifics of this will be explained within all the necessary documentation.

1/ Swift lending decisions. Through our contacts, we are often able to get an agreement in principle within 24 hours. Furthermore, the lending process is short and money can often be with borrowers within a few days.

2/ Competitive lending rates. Through our contacts we are able to lend at very cheap rates, typically 3-6% plus a one-off arrangement fee of 2%, plus a 0.25% charge for legal fees.

3/ Transparent lending. The loan agreement is simple and easy to understand.

4/ Flexibility. Often you can have an agreement in place to have access to X amount of money, and only deposit security for each tranche of money you need. This has benefits for many project financing needs, where you are uncertain of the exact amount of money required.

5/ Protection. You do not relinquish ownership of your security. It is held in a third-party custodial account.

1/ Not all companies qualify for them. For a company to qualify they must have been a public listed company for a minimum for three years with a market capitalisation currently in excess of $100 Million USD. Additionally, they must have unencumbered security to pledge.

2/ A company needs to have a reasonable trading volume. If there is little liquidity in the stock then it would be difficult to lend as the lender has no way of liquidating security in a timely way in the event of default, and once they start to sell the value of the Stock/Security will quickly go down in value.

3/ For large amounts of lending, funds will need to be sent in tranches, due to liquidity issues of the underlying security. This may not be ideal for the borrower, as they may need the funds in one hit.

4/ Funds are sent in US Dollars. This may not be suitable for all borrowers.

5/ Security is often capped at 50-60% LTV. This is necessary to obtain cheaper lending rates.

Disadvantages of Non-Recourse Stock Loans

Any publicly traded security are eligible. Stocks, bonds, ETF’s (exchange-traded fund), ADR’s (American Depositary Receipt), Foreign Stocks are ALL eligible. Typically, we look for a minimum $350,000 daily trading volume for each publicly traded stock. Major Stock Exchange stocks are preferred.

Africa Egypt, Morocco, South Africa
Americas Canada, Brazil, Chile, Colombia, Mexico
Asia China, Hong Kong, Indonesia, Japan, Malaysia, Pakistan, Philippines, Singapore, South Korea, Sri Lanka, Taiwan, Thailand, Australia, New Zealand
Europe Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Italy, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, United Kingdom
Eastern Europe Bulgaria, Croatia, Cyprus, Czech Republic, Estonia, Greece, Hungary, Latvia, Lithuania, Poland, Romania, Russia, Slovakia, Slovenia, Turkey, Ukraine
Middle East Dubai (DFM), Dubai, (NASDAQ), Qatar, Israel, Abu Dhabi, Jordan, Lebanon, Bahrain, Oman, Saudi Arabia

NO, this is a “non-recourse” loan; the lender cannot come after you personally. There is NO personal liability associated with the security loan. The only security for the loan is the stock collateral and the only recourse the lender has is against the stock. You have NO personal liability exposure. NO liens.

NO, the Securities loan is not reported to the credit agencies and there is NO public record of this loan. Even if you elect to walk away from the loan and default because, for example, you have more money then the stock is worth, it is NOT reported. The institutions are privately owned and loan HNWI and family office money so they dont have any reasons to want the press or credit agencies getting involved as the lending agreement is nothing to do with these financial and media entities.

Many securities are allowed to be put up as collateral. Some of the other countries include Canada, UK, European countries, Hong Kong, Israel, Australia, India, and Korea, to name just a few. We work with clients located all over the world and we arrange stock loan financing on exchanges all over the globe.

The LTV’s vary depending on the quality of the securities being collateralized. With high quality large cap stocks you can expect LTV’s up to 80% (sometimes higher) while with small cap or non main exchange securities the LTV’s will be more conservative and lower. This means it can be as high as 80% LTV but can be Lower. It depends upon the quality and type of security owned. Each loan is evaluated on a case-by-case basis. The highest LTVs are offered to high quality securities such as Blue Chip stocks.

Stability, trading volume and share price are factors in determining the interest rate, term and Loan to Value. Good stocks, like good investments, always get the best terms. Typically, we look for a minimum $75,000 daily trading volume for each publicly traded stock.

The most attractive interest rates and terms and conditions are available to those stocks with good strong and steady volume and price, and low volatility. Prices over $5/share typically get best prices as long as volatility is low and volume is strong and steady. Berkshire Hathaway, Amazon, Facebook, Tesla and Apple are considered blue chip stocks and ideal cases.

Strong and steady volume is highly prized as it allows some predictability. The leading indicators when determining the eligibility of a stock as collateral are going to be exchange, volatility, share price, liquidity, trends, filings, short term trading volume and long term trading volume.

From 2.6% Fixed interest Rate: This means it can be as low as 2.6% and can be Higher. It depends upon the quality and type of security owned. (Interest Only) Stability, trading volume and share price are factors in determining the interest rate. Loans for “bonds”, the interest rate may be lower, particularly T Bills.

YES we can arrange share collateral loans for clients based in any country. Provided that the stock is listed on a major exchange and has good trading volume. We have successfully closed many loans with borrowers living in Europe, Asia, United States, Canada, Mexico and many countries around the world. Your location or where you live does not matter. If your stock is traded on a foreign stock exchange, we can help also.

NO credit report is required and NOT requested. Whether you have great credit, bad credit, or no credit, there is no need to be concerned. NO credit report is pulled. The securities loan is secured against the pledged stock so no credit reports are required.

NO, your income and employment is not required and not requested. Our simple application does not ask or require this information. The loan is secured against your assets which is the publicly traded stock you are putting up as collateral.

Loans can close in as little as 5-7 days depending on the speed at which the borrower processes the paperwork.  Simply send us the below information and we will have your loan term sheet with you within 24 hours.

  • Stock Ticker
  • Stock Exchange Stock Is Listed On
  • Amount of Shares Held
  • Loan Amount Required
  • Term Required In Years

You can do anything with the cash from the stock loan proceeds. Buy a business, buy a home, pay-off a mortgage, buy art, super cars, business expansion, investment real estate, etc. The money is yours to do as you feel as its loaned against the clients portfolio or stock holding.

Yes, you will receive a credit against the interest payment of all amounts equal to dividends, interest or other distributions on the stock during the term of the loan. However, you do not get the dividend directly.

No you are not personally liability. If you do not make the interest payments when due or fail to repay the principal when due, our only recourse is against the collateral which is the shares, and not you. The loan will be terminated and cancelled. You get to keep the money received from the securities and the lender gets to keep all interest in the stock. The default or termination is  not reported to any credit references or any media organisations.

The stock secured loan transaction is a non taxable event per section 1058 of the Internal Revenue Code. The sale of stock will become a taxable event but in most countries and jurisdiction’s taking loans against your portfolio of stock is not taxable. (you will need to consult a lawyer or accountant in your country of residence to confirm this)

Yes, most types of bonds are eligible, such as the US Treasuries, Corporate bonds, etc. T Bills can be pledged as collateral with fixed interest rates from 2% and sometimes lower. And, we may be able to structure the terms as a matching, where all the coupon interest from the bond goes toward the interest due on the loan. This means that no interest payments would be due on the loan. Pretty much any financial instrument that has an ISIN code can be eligible for collateral loans. Different lenders specialize in different asset classes so best to speak with us about your individual asset class to see if loan stock  or lending can be issued.

It is important to know that risks are involved with any type of stock transaction due to the changing nature of stocks. With that said, stock loans are often placed in a low risk investment category. This is due to various reasons, but mostly due to the non-recourse nature of many stock loans and the fact the lender holds your stock collateral and can sell the stock to cover the remaining loan balance.

The stock is transferred to the lender which has full title, but you retain all beneficial interests in the securities. You will receive any dividends, interest or any other benefits that flow from the stock during the term of the loan.

Yes. Transfers occur via secure, nationally and internationally accepted transfer using the DTC system – the safest and most common system in the U.S. securities industry. Stocks reside in these transfer accounts to await the hedging process, or are moved directly into the lender’s U.S. safekeeping account for the duration of the loan term, depending on the loan program chosen. Confirmations of every step of the transfer process, by phone and e-mail, are provided upon request to every client. DTC transfer is a common stock transfer method used by banks and brokerages throughout the U.S, Europe, Asia and many foreign countries, with an excellent record for security and transparency.

On a non-recourse loan you, the borrowers, have NO personal liability. There are general rules regarding tax treatment of a default which you would be best advised by a tax lawyer specialist. The amount realized is the difference between the loan amount and the cost basis in the stock.

There are two different loan programs or options to choose from.

Option ONE: If the stock portfolio decreases in value, the borrower can default without penalty. This means NO cash or additional shares are required. Just walk away from the loan without making a payment. It’s not callable.

Option TWO: If the value of the stock falls below the agreed minimum value in the contract, then there is an event of default. The minimum value is 80% of the loan amount, or whatever is agreed upon. While the interest rate and interest payment remain constant, due to the volatility of the collateral, the contract may require the borrower to contribute additional cash or shares to keep the loan viable. The decision to give additional cash or securities is solely in the borrower’s hands. The borrower could choose not to risk more capital and terminate the loan, or the borrower could choose to keep the loan in good standing by curing the default caused by the loss in value of the collateral.

The additional cash or shares tendered to cure the default do not become part of the collateral for the loan are not subject to repayment or refund at any time. At origination, the borrower and the lender agreed to a minimum fair market value for the collateral of the loan. The payment of the additional cash or securities establishes a new lower minimum fair market value and higher risk threshold for the lender and borrower alike. Those funds “buy-down” the price of the security to set a new floor for the stock and thus maintain the minimum value ratio between the amount of money loaned and the minimum value of the security for which the lender is willing to be at risk.

For example, assume the stock had a full market value of $10 per share when the loan was made. Also, assume the loan terms established a 70% LTV, so the loan was for 70% of the full market value or $7 per share. If the value of the stock falls below 80% of the loan amount, here $7, then there is a default which can be cured by the borrower. In this example, the share price would have to go below $7 x 80%, or $5.60 per share. For a default to occur, the share price in the example must fall more than 44%.

Get in touch to hear more about our share loan program.

If you would like to know more about the terms used on our website please visit our Securities Glossary of Terms page

Stock Loans | Securities Financing | Stock Loan Brokers April 8, 2020