Securities Based Lending – Secure Loans Against Your Collateral

Securities-Based Lending: A Powerful Lending Strategy For Personal Or Business Use

Securities-based lending is a financial strategy that has gained popularity among savvy investors in recent years. By utilizing securities as collateral, individuals can access funds through a securities-backed line of credit or a securities-based line of credit. This powerful lending method allows borrowers to leverage their investment portfolios to secure loans, providing them with liquidity and flexibility to meet various financial needs.

The advantages of securities-based lending are numerous. First and foremost, this strategy allows borrowers to retain ownership of their securities, avoiding the need to sell them to access cash. This can be particularly advantageous for long-term investors who want to maintain their investment positions while still having funds readily available. Additionally, securities-based lending often comes with lower interest rates compared to traditional loans, making it a more cost-effective option for borrowers.

The flexibility in loan terms and repayment options further adds to the appeal of securities-based lending, catering to the unique financial goals of each borrower. Whether it be funding a business expansion, purchasing real estate, or covering personal expenses, securities-based lending provides a professional and well-rounded solution.

Securities As Collateral

• Securities-based lending allows borrowers to retain ownership of their securities
• Avoids the need to sell securities in order to access cash
• Particularly advantageous for long-term investors who want to maintain investment positions
• Lower interest rates compared to traditional loans
• More cost-effective option for borrowers
• Flexibility in loan terms and repayment options
• Catering to unique financial goals of each borrower
• Funding business expansion, purchasing real estate, or covering personal expenses

Benefits of Securities-Based Lending

Securities-based lending provides numerous benefits for individuals looking to access financing while leveraging their investment portfolios. By utilizing securities as collateral, borrowers have the unique advantage of accessing funds without needing to sell their stocks or other financial instruments. This allows borrowers to maintain their investment positions and potentially benefit from future market gains. With a security-based loan, individuals can unlock the value of their investment portfolios and freely use the borrowed funds for a variety of purposes, such as personal expenses, business investments, or real estate acquisitions.

One of the key benefits of securities-based lending is the flexibility it offers in terms of loan terms and interest rates. Unlike traditional loans that often come with rigid repayment schedules and fixed interest rates, security-backed loans can be customized to meet the specific needs of the borrower. This flexibility allows borrowers to choose repayment terms and interest rates that are most advantageous to them. Additionally, securities-based lending typically offers more competitive interest rates compared to other forms of borrowing, making it a cost-effective financial strategy for those who qualify.

In conclusion, securities-based lending provides individuals with the opportunity to borrow against their stock based loans, portfolios and other securities, while still retaining ownership of their investments. This form of lending offers the benefit of flexibility in loan terms and competitive interest rates, allowing borrowers to access funds without disrupting their investment strategies. With the potential for favorable tax treatment and the ability to unlock the value of their portfolios, securities-based lending presents a powerful financial strategy for high-net-worth individuals and investors seeking liquidity and growth opportunities.

How Securities-Based Lending Works

Securities-based lending, also known as security backed loans or securities-based loans, is a financial strategy that allows individuals and businesses to borrow money using their investment securities as collateral. This unique form of borrowing enables borrowers to tap into the value of their investment portfolios without having to sell their securities or disturb their investment strategies.

To initiate a securities-based loan, borrowers typically provide their investment securities, such as stocks, bonds, or mutual funds, as collateral to the lender. The lender then evaluates the value and marketability of the securities and determines the loan amount that can be extended to the borrower. These loans are usually structured as lines of credit, allowing borrowers to access funds whenever needed, and the interest rates are often competitive with traditional loan options. By leveraging their investment portfolios, borrowers can enjoy increased liquidity and financial flexibility while still retaining ownership and potential growth of their securities.

Securities-based lending can be an attractive financial tool for individuals and businesses seeking immediate access to cash while preserving their investment strategies. However, it is crucial for potential borrowers to understand the risks and terms associated with these loans before committing to them. Working with a professional financial advisor who specializes in securities-based lending can provide valuable guidance in evaluating the suitability and benefits of this lending option for individual financial goals and circumstances. By leveraging their investment portfolios strategically, borrowers can unlock the potential of their assets to meet their liquidity needs and pursue their financial objectives.

Our Tailored Securities-Based Lending Solutions

When it comes to finding the right financial solution for your needs, our tailored securities-based lending solutions are designed to meet your specific requirements. A securities-based loan allows you to leverage your investment portfolio to access liquidity without having to sell your assets. With competitive securities-based lending rates, you can take advantage of the value of your investments while retaining the potential for growth.

At [Company Name], we understand that each client has unique financial goals and circumstances. That’s why our experienced team of professionals will work closely with you to create a customized securities-based lending solution that aligns with your objectives. Whether you need short-term liquidity or want to fund a specific project, our loan securities options can provide you with the flexibility and convenience you need. With our tailored approach, you can feel confident that your securities-based lending solution is optimized to suit your individual needs.

The Role of Collateral in Securities-Based Lending

Collateral plays a crucial role in securities-based lending, as it acts as security for the loan. In this type of lending, borrowers can obtain a loan on securities they already own, such as stocks, bonds, or mutual funds. By pledging these assets as collateral, borrowers can access funds without having to sell their investments.

One of the advantages of using securities as collateral is that it allows borrowers to maintain their investment positions while accessing liquidity. The value of the collateral is taken into consideration when determining the loan amount and interest rates. Securities-based lending typically offers competitive interest rates compared to other forms of borrowing, such as credit cards or personal loans. Moreover, borrowers have the flexibility to use the loan proceeds for various purposes, such as home renovations, education expenses, or debt consolidation. By leveraging their investment portfolio, borrowers can benefit from a securities-based line of credit that aligns with their financial goals and objectives.

Choosing the Right Securities for Your Loan

When considering a securities loan or security-backed lending, it is crucial to choose the right securities to use as collateral. The main advantage of using stocks as collateral is their liquidity and high market value. Blue-chip stocks from reputable companies are often preferred due to their stability and reliability. These stocks are considered less risky and may result in more favorable loan terms and interest rates. On the other hand, volatile stocks or those from companies with uncertain financial performance may not be suitable for loans against securities. It is important to carefully evaluate the risk associated with the chosen securities to ensure the loan remains manageable and secure.

In addition to blue-chip stocks, other eligible securities may include government or corporate bonds, mutual funds, exchange-traded funds (ETFs), and certain types of annuities. The type of security chosen will depend on various factors, such as the desired loan amount, loan-to-value ratio, and the nature of the underlying securities. Financial institutions offering securities-based lending will typically provide a list of approved securities, as well as guidelines for eligible collateral. Working closely with a financial advisor or loan specialist can help individuals make informed decisions and select the most appropriate securities for their loan needs.

Interest Rates and Terms in Securities-Based Lending

The interest rates and terms in securities-based lending differ from traditional loans due to the unique nature of borrowing against securities. When obtaining a line of credit against stocks or opting for a stock-backed loan or equity-backed loan, borrowers can benefit from competitive interest rates that are often lower than those of traditional options. These lower interest rates are typically a result of the collateral provided by the securities, which mitigates the lender’s risk.

In addition to favorable interest rates, borrowers also have the flexibility to choose from various loan terms in securities-based lending. The terms can be customized based on individual needs, allowing borrowers to align the repayment schedule with their financial goals. It’s important to note that the terms of the loan will depend on factors such as the value and type of securities being used as collateral, as well as the borrower’s creditworthiness. By understanding the interest rates and terms associated with borrowing securities, individuals can make informed decisions about leveraging their assets for financial growth and liquidity.

Tax Implications of Securities-Based Lending

When considering the tax implications of securities-based lending, it is essential to understand the potential impact on your financial situation. One key aspect to consider is the securities backed line of credit rates. These rates may vary depending on the lender and the type of assets that are used as collateral. It is crucial to assess the interest rates carefully to ensure that you can comfortably manage the payments and minimize any potential tax implications.

Another important factor to consider when it comes to tax implications is the distinction between stock-based loans and stock-based lines of credit (SBLOC). While both options provide access to liquidity using stocks as collateral, there may be differences in the tax treatment. It is crucial to consult with a tax professional who can guide you through the specific tax implications of each option and help you determine which one aligns with your financial goals. By understanding the tax implications of securities-based lending, you can make informed decisions that maximize your financial benefits while minimizing any potential tax consequences.

Understanding Loan-to-Value Ratios in Lending

Understanding loan-to-value (LTV) ratios is essential when considering borrowing against securities or obtaining a securities-based loan. LTV ratios determine the maximum amount that can be borrowed against the value of the securities being used as collateral. When availing of a securities-backed loan, banks typically require a certain LTV ratio to protect themselves from potential losses. This ratio is calculated by dividing the loan amount by the value of the securities. Different banks may have varying LTV requirements, so it is crucial to understand the specific LTV ratio set by the lending institution. In most cases, higher loan-to-value ratios may result in higher securities-based loan rates.

Borrowing against securities can be a strategic financial move, especially for high-net-worth individuals seeking liquidity options. When evaluating securities-backed loan rates, it is important to consider the LTV ratio established by the lender. A favorable LTV ratio can result in more competitive interest rates and more flexible loan terms. It is important to conduct thorough research and compare offerings from different financial institutions to ensure the most favorable rates and terms for your securities-backed loan. By understanding the relationship between LTV ratios and securities-based loan rates, individuals can make informed decisions when leveraging their assets for borrowing purposes.

Securities-Based Lending for High-Net-Worth Individuals

High-net-worth individuals often have complex financial portfolios that require tailored lending solutions. Securities-based lending provides these individuals with a unique opportunity to unlock the value of their investments while maintaining the flexibility and control they need.

One of the key benefits of securities-based lending for high-net-worth individuals is the ability to obtain a portfolio-based loan. Unlike traditional loans that are based on income and creditworthiness, securities-based lending allows borrowers to use their investment portfolios as collateral. This means that borrowers can access funds without selling their assets, potentially avoiding capital gains taxes and maintaining their long-term investment strategies. Additionally, securities-based loans offer competitive interest rates compared to other forms of credit, such as a brokerage line of credit or traditional mortgage. The interest rate on a securities loan is typically tied to a benchmark, such as LIBOR, and can be lower than the rates offered on other types of loans. This provides an attractive option for high-net-worth individuals who want to leverage their assets for additional liquidity without incurring high borrowing costs.

Leveraging Securities for Liquidity and Growth

Leveraging securities for liquidity and growth is a strategy that allows individuals to unlock the value of their investment portfolios. By borrowing money using stocks as collateral, investors can access funds without needing to liquidate their assets. This approach is particularly beneficial for those who want to maintain their stock positions while still having the flexibility to pursue other financial objectives.

With a loan based on stocks, individuals can secure attractive securities-backed lending rates that are often lower than conventional loan options. These rates are determined by factors such as the quality and diversification of the securities pledged as collateral, as well as the overall creditworthiness of the borrower. By borrowing against their share portfolio, investors can take advantage of the potential growth of their investments while putting the borrowed funds to work in other areas of their financial plan.

Overall, leveraging securities for liquidity and growth provides a powerful tool for investors seeking to expand their financial capabilities. Whether it’s for personal expenses, business ventures, or investment opportunities, this approach allows individuals to tap into the value of their portfolios without disrupting their long-term investment strategies. It’s a smart way to access capital while still participating in the potential upside of the stock market.

Our Expert Team in Securities-Based Lending

When it comes to navigating the complex world of securities-based lending, having a seasoned team of experts by your side can make all the difference. Our team of professionals is well-versed in the intricacies of this specialized field, ensuring that you have access to the knowledge and guidance you need to make informed decisions. Whether you are considering a loan backed by stocks, exploring securities-based lending interest rates, or looking for information on security-backed loan interest rates, our team can provide you with the expertise you need to navigate these areas with confidence.

With years of experience in the industry, our team understands the unique challenges and opportunities that come with securities-based lending. From structuring customized securities-backed mortgages to offering tailored solutions based on your individual needs and goals, our experts are well-equipped to guide you through the process. Our team takes the time to understand your specific situation and objectives, working closely with you to develop a strategy that aligns with your financial goals. By leveraging their extensive knowledge and experience, our team can help you optimize your portfolio and unlock the potential of your securities-based assets.

Case Studies: Successful Securities-Based Lending Scenarios

Securities-based lending, also known as investment-backed lending, has become a popular financial strategy for individuals looking to capitalize on their invested assets. One successful scenario involves using a stock portfolio as collateral to obtain a securities line of credit. By leveraging their holdings, borrowers can access a line of credit that is secured based on the value of their investments. This allows them to unlock the potential of their portfolio while still maintaining ownership and potential upside.

Another case study showcases the benefits of securities-based lending for high-net-worth individuals. With a securities line of credit, these borrowers can access funds without the need to sell their investments. This approach not only provides them with liquidity but also allows them to continue benefiting from potential market growth. By utilizing their securities as collateral, these individuals can leverage their portfolio to expand their businesses, diversify their investments, or undertake other financial endeavors. This innovative lending solution offers flexibility, convenience, and the opportunity to maximize the value of one’s portfolio.

Maximizing Your Portfolio with Securities Baed Lending

Securities-based lending offers a strategic approach to maximize your investment portfolio. By leveraging your holdings, you can access the liquidity you need for other financial goals without selling your securities. This type of lending is commonly known as stock-based lending, share-backed lending, or collateralized lending. It allows investors to use their stocks, bonds, or other eligible securities as collateral to secure a loan. Stock loan lenders provide a valuable service by allowing individuals to tap into the worth of their portfolio while still participating in potential market gains.

The benefits of securities-based lending are evident for high-net-worth individuals looking to optimize their investment strategy. Through this innovative approach, you can continue holding your securities and potentially benefit from future appreciation, while also accessing capital for personal or business needs. This financial solution caters to diverse objectives, such as funding education, acquiring real estate, or expanding a business. Furthermore, the terms and interest rates associated with securities-based lending are typically more favorable compared to traditional loans, making it an attractive option for savvy investors.

Securities-Based Lending vs. Traditional Loans

Securities-based lending, also known as share-backed financing, offers a unique alternative to traditional loans. Unlike traditional loans that typically require personal assets, such as real estate or vehicles, as collateral, securities-based lending allows individuals to use their shares as security for a loan. This type of loan is especially attractive for individuals with substantial investments in stocks or other securities. By leveraging the value of their portfolio, borrowers can access the funds they need without needing to sell their assets.

With securities collateralized loans, borrowers benefit from increased flexibility and liquidity. Unlike traditional loans, securities-based lending typically has fewer restrictions on the use of funds, allowing borrowers to freely invest in new opportunities or cover unexpected expenses. Moreover, the value of the loan is directly linked to the value of the securities, which means borrowers may have the potential to borrow larger sums compared to traditional loans. Overall, securities-based lending provides a powerful financial strategy for individuals looking to leverage their securities for growth and liquidity.

Securities-Based Lending for Business Expansion

As businesses look to expand and grow, they often face the challenge of securing the necessary funds to fuel their ambitious plans. This is where a securities-based lending program can prove to be a powerful financial strategy. By leveraging their existing investment portfolio, businesses can unlock the value of their securities through securities-based borrowing. This allows them to access immediate funds without selling their investments, providing a flexible and efficient solution for business expansion. With a securities-based lending program, businesses can utilize their SBL securities as collateral to secure the financing they need, enabling them to seize new opportunities and drive growth.

The benefits of utilizing a securities-based lending program for business expansion are manifold. Firstly, this approach allows businesses to maintain ownership and control over their investment portfolio, mitigating the risk of divesting valuable assets. Additionally, a securities-based loan typically offers competitive interest rates and terms, ensuring cost-effectiveness and enhancing the financial feasibility of expansion plans. Moreover, the tax implications of securities-based lending can be advantageous, as the interest paid on the loan may be tax deductible. With a comprehensive understanding of loan-to-value ratios and careful consideration of the appropriate securities to pledge as collateral, businesses can effectively leverage securities-based lending to unlock the full potential of their portfolio and fuel their expansion endeavors.

The Application Process: Getting Started

The application process for securities-based lending is a straightforward and efficient way to access funds using your existing investment portfolio as collateral. To get started, you will need to gather the necessary documentation and reach out to a reputable financial institution that specializes in this type of lending. Begin by assessing your financial goals and determining how much capital you need for your specific purpose, whether it’s funding a business expansion or personal investment opportunity. Once you have a clear idea of your objectives, compile the required paperwork, such as proof of identification, investment statements, and a completed loan application. Be sure to carefully review the application to ensure all information is accurate and complete. By taking these initial steps, you’ll be on your way to harnessing the power of securities-based lending for your financial needs.

A key aspect of the application process is selecting the right financial institution to work with. It’s essential to partner with a reputable and experienced lender who can provide personalized guidance throughout the lending journey. Look for a lender that understands the intricacies of securities-based lending and has a track record of successfully assisting clients in achieving their financial goals. Additionally, consider the level of expertise the lender’s team possesses. A team comprised of seasoned professionals with extensive knowledge of the lending industry will be able to offer valuable insights and tailor solutions that align with your unique circumstances. By choosing the right lender, you can confidently navigate the application process and embark on a lending journey that maximizes the potential of your investment portfolio.

Managing Your Securities-Based Loan

Once you have obtained a securities-based loan, it is important to effectively manage it to ensure the best possible outcomes. Firstly, regularly monitoring your loan balance is crucial. By keeping track of your outstanding balance, you can make informed decisions about how much to borrow and when to repay. This can help you optimize your liquidity and ensure that you have sufficient funds available when needed.

In addition, staying informed about the market value of your securities is essential. Regularly assessing the performance of your underlying collateral enables you to understand how changes in market conditions may affect your loan. By closely monitoring the value of your securities, you can take proactive measures to mitigate potential risks and maintain a healthy loan-to-value ratio. This will not only help you protect your investment but also enable you to take advantage of any favorable market movements that may arise.

The Future of Securities-Based Lending Trends

Securities-based lending is a financial strategy that has gained significant popularity in recent years. As the landscape of lending continues to evolve, it is important to understand the future trends that may impact this industry. One key trend that is expected to shape the future of securities-based lending is the increasing use of technology. With advancements in artificial intelligence and machine learning, lenders will be able to analyze and assess potential borrowers more efficiently and accurately. This automation will streamline the application and approval process, making it faster and more convenient for borrowers to access funds.

Another trend that is likely to emerge is the expansion of securities-based lending to new markets and industries. Traditionally, securities-based lending has been primarily utilized by high-net-worth individuals, but we can expect to see more businesses and entrepreneurs leveraging their securities for growth and expansion. This shift will open up new opportunities for borrowers and lenders alike, as it provides a flexible and accessible financing option for businesses in need of capital. As securities-based lending continues to gain traction, it is crucial for borrowers to stay informed about these trends and consider how they can benefit from this powerful financial strategy.

Contact Us for a Personalized Lending Consultation

For individuals seeking customized financial solutions, our team of professionals is here to guide you through the securities-based lending process. With our expertise and personalized approach, we are committed to understanding your unique financial goals and tailoring a lending solution that meets your specific needs. Whether you are looking to unlock the value of your securities, maximize your portfolio, or expand your business, our team is ready to provide you with a personalized consultation.

During the consultation, our experts will analyze your portfolio, evaluate your financial objectives, and discuss the various options available to you. We understand that each client has distinct requirements and risk tolerance levels. Therefore, we will work closely with you to identify the most suitable securities for your loan, considering factors such as liquidity, market value, and potential growth. Our team will also explain the interest rates, terms, and tax implications associated with securities-based lending, ensuring you have a comprehensive understanding of the process.

By choosing to consult with our team of professionals, you can gain valuable insight and guidance that will assist you in making informed financial decisions. We are here to assist high-net-worth individuals in leveraging their assets and achieving their financial objectives. To start the conversation and embark on a tailored lending journey, we invite you to get in touch with us today.

What is securities-based lending?

Securities-based lending is a financial strategy that allows individuals to borrow money by using their investment securities as collateral.

What are the benefits of securities-based lending?

The benefits of securities-based lending include access to liquidity without selling securities, potentially lower interest rates compared to traditional loans, and the ability to maintain investment strategies.

How does securities-based lending work?

Securities-based lending works by pledging investment securities as collateral for a loan. The loan amount is typically a percentage of the value of the securities, and the borrower pays interest on the loan.

What tailored solutions do you offer for securities-based lending?

We offer personalized lending solutions based on individual needs and goals. Our team will work with you to understand your financial objectives and create a customized lending plan.

What is the role of collateral in securities-based lending?

Collateral in securities-based lending refers to the investment securities that are pledged to secure the loan. These securities provide a level of protection for the lender in case the borrower is unable to repay the loan.

How do I choose the right securities for my loan?

The selection of securities for your loan depends on various factors such as their value, liquidity, and stability. Our expert team can guide you in choosing the appropriate securities to maximize your borrowing capacity.

What are the interest rates and terms in securities-based lending?

Interest rates and terms in securities-based lending vary depending on factors such as the loan amount, the pledged securities, and the borrower’s creditworthiness. We offer competitive rates and flexible terms tailored to each individual’s situation.

What are the tax implications of securities-based lending?

Tax implications of securities-based lending may vary, and it is recommended to consult with a tax advisor. Typically, interest paid on securities-based loans is not tax-deductible, but selling securities to repay the loan may trigger capital gains taxes.

What is loan-to-value ratio in lending?

Loan-to-value ratio in lending is the ratio of the loan amount to the value of the pledged securities. It helps determine the maximum amount that can be borrowed and the risk associated with the loan.

Is securities-based lending suitable for high-net-worth individuals?

Yes, securities-based lending is often suitable for high-net-worth individuals who have substantial investment portfolios. It allows them to access liquidity without disrupting their investment strategies.

How can I leverage securities for liquidity and growth?

By using securities as collateral for a loan, you can access liquidity while still maintaining ownership of your investments. This allows you to seize opportunities for growth without the need to sell securities.

How experienced is your team in securities-based lending?

Our expert team has extensive experience in securities-based lending. They are knowledgeable in the field and can provide personalized advice and assistance throughout the lending process.

Can you provide examples of successful securities-based lending scenarios?

Yes, our case studies highlight successful securities-based lending scenarios, showcasing how individuals have effectively utilized this strategy to achieve their financial goals.

How can I maximize my portfolio with securities-based lending?

Securities-based lending can be used strategically to unlock the value of your portfolio, providing you with additional funds for investment opportunities, diversification, or other financial needs.

What is the difference between securities-based lending and traditional loans?

Securities-based lending differs from traditional loans as it utilizes investment securities as collateral, allowing borrowers to access liquidity without selling their securities. It may offer more favorable terms and flexibility compared to traditional loans.

Can securities-based lending be used for business expansion?

Yes, securities-based lending can be a valuable tool for business expansion. By leveraging your investment securities, you can secure funds to finance business growth initiatives without disrupting your investment strategy.

What is the application process for securities-based lending?

The application process for securities-based lending typically involves a consultation with our team, providing necessary documentation, evaluation of the pledged securities, and completing the loan application. Our team will guide you through each step.

How do I manage my securities-based loan?

Managing a securities-based loan involves monitoring the value of your pledged securities, making interest payments on time, and ensuring compliance with the loan terms. Our team can assist you with the ongoing management of your loan.

What are the future trends in securities-based lending?

The future of securities-based lending is expected to involve advancements in technology, increased accessibility, and expanded product offerings. Staying informed about these trends will help borrowers make informed decisions.

How can I contact you for a personalized lending consultation?

To schedule a personalized lending consultation, please contact us at [phone number] or email us at [email address]. Our team will be happy to assist you and provide tailored guidance based on your specific needs.

WHAT IS SECURITIES-BASED LENDING

Securities Based Lending provides a convenient and flexible way to access the value of your invested assets while keeping them at work toward your longer-term goals. Whether you are considering a major purchase or looking for sources of funding for your small business or a bridge loan, Our Securities Based Lending can help.

If you have a taxable investment portfolio, you may use those assets as collateral to establish a non-purpose line of credit to manage your cash flow needs. Your share portfolio enables you to access a portion of the value of taxable investment assets held here without requiring the liquidation of those assets, allowing you to maintain your portfolio’s current exposure to the market.

Securities Based Lending allows you to pledge a wide range of your assets under management from a variety of taxable accounts. Depending on your need, this can give you the flexibility to draw on multiple sources of funding.

Our lending solutions are extremely convenient. While traditional financing options such as a mortgage or commercial lending can take weeks or months to solidify, the steps you take to access our lending solutions on average the approval process takes around 2 weeks, although more complex situations may require additional processing time.

Once approved, you will have access to your line of credit via wire transfer.

While your securities-based lending portfolio will be pledged to the lending institution as collateral for the duration of the loan, you may continue to hold the stock portfolio and will receive the benefits of any dividends, interest or capital appreciation that may accrue in the account as long as the loan remains in good standing.

We can help with your borrowing needs to provide more complete and valuable insight into your total financial picture. It can also create opportunities for consolidation or optimization of existing, higher-interest loans.

SECURITIES BASED LENDING CRITERIA

• We can source finance from £250,000 for securities-based lending. We can finance lower lending amounts if shares are highly liquid and blue chip on major stock exchanges.
• Stock loan to value up to 65% loan to value for blue chip portfolios
• Alternative Investment Market (AIM) portfolios are considered highly liquid stocks
• Acceptable securities are blue-chip shares on any exchange and highly liquid
• Loans can be drawn down in RMB, GBP Sterling, Euro & US Dollar
• Custody can remain with 3rd party
• Margin loan with recourse (NON-title transfer )
• Loan Term: 36 months up to 5 years ( early repayment allowed )
• Loan rates from 3% pa fixed
• Interest servicing monthly or quarterly on our stock loans.

We Can Help If You Are Needing:

• Securities based lending
• Securities based loan
• Security backed lending
• Securities backed loans

Raise funds without liquidating your portfolio

Selling portfolio assets in order to access the liquidity you need may result in tax liabilities. With a Portfolio Loan, you could take advantage of the freedom to access funds and to borrow against securities without selling your existing stock portfolio assets.

Convenient access to funds

The faster you can react, the better. You’ll receive a decision on your loan within days rather than weeks. Funds can be drawn down in RMB, US dollars, GBP or Euros.

Simple transfers

If your assets are managed elsewhere, We can help ensure a smooth transfer of your assets to help you release funds from your stock portfolio allowing you to secure securities-based lending.

Securities-Based Lending Secured Against Your Investment Portfolio

A securities-backed loan is a type of margin loan that lets investors borrow against their stock portfolio at a low-interest rate. The idea is that the portfolio loan is collateralized by your stock positions from the portfolio lenders.

With that money, you can use your portfolio lending loan for anything really – from home improvement, and house purchase to paying down other debt, and much more.

If you have a large amount of money tied up in your portfolio (maybe through your own investing, or you received stocks as part of an IPO), you may not want to sell your positions if you need cash. That’s where the portfolio line of credit comes in letting you take a loan against your stocks and shares. You can simply borrow against your positions, without having to sell your portfolio.

Furthermore, by not having to sell your positions, you also can avoid potential taxes levied on the sale of stocks – which if you have highly appreciated stock, can be huge.

You’re allowed to borrow up to 70% of your stock portfolio to purchase securities or any other asset you choose to purchase. Your loan accrues interest, but you can pay it back anytime – either through a cash deposit or by actually selling some securities and using that cash.

What Are The Risks Of Securities-Based Lending

It’s important to realize that there are risks involved in a margin loan – just like any other type of debt.

There are three main risks when it comes to a margin loan, portfolio line of credit or securities-backed loan.

1. First, if you use the money to invest, you could lose the money (and as a result, your losses are magnified).
2. Second, interest rates on the loan could change. Right now, we’re at historical lows for interest, but rates could rise in the future. Theoretically, they could also go down as well – which would be a small win.
3. Finally, you could be subject to a maintenance call. If your portfolio value declines, your account can trigger a maintenance call and you either have to deposit new cash or sell a portion of your portfolio to cover the loan. While you’ll usually be notified of the need to deposit extra money, if your portfolio experiences significant losses, the brokerage may sell your stocks automatically to cover the loan (due to being legally required to).

What Are The Best Use Cases For Securities Based Lending

There are a few use cases where we see using a stock portfolio for securities-based lending or as frequently known as stock loans as making a lot of sense. These use cases do rely on you having a solid portfolio position (likely at least $100,000 or more), and most of the portfolio is highly appreciated stocks – meaning you don’t want to sell them. Plus, we’re also working under the assumption that you can afford the loan whether or not it’s a margin loan.

Debt Consolidation: If you have other debt (such as credit cards), it could make a lot of sense to consolidate your debt into a margin loan. You would likely save huge amounts in interest – since the best margin loans are at 3.5% or less, while credit cards are double-digits.

Car Financing: If you need to purchase a new car, using a margin loan could make sense. The rates are likely lower than you could get for a purchase.

Home Improvement: If you’re looking to do a renovation or addition, it could make sense to use a portfolio line of credit instead of a.

Purchase More Shares: If you are looking to leverage up against your existing portfolio of stocks and shares then you can borrow against your existing stock portfolio to purchase more shares in case you think the market is going to increase in value. There is more risk to your existing portfolio but there is also more upside potential for the future.

We don’t like using a margin loan to purchase more stocks. Yes, it can magnify your returns, but it can also magnify your losses as well – and that can hurt you financially.

Benefits Of Securities-Based Lending

Flexible, hassle-free lending solutions with ongoing support from your personal Lending Specialist.

Ease and flexibility

There’s no stock loan application charge and you can buy and sell assets at any time, provided you have sufficient collateral with us.

Space to grow

Thousands of globally traded assets have been approved as collateral, and the number is growing.

Diversification

If you use this service for leverage, you can re-invest, increasing the gross value of your portfolio and potentially increasing diversification. However, while investment leverage can magnify gains in a rising market, it can also magnify losses when the market falls.

Dedicated support

Our stock lending portfolio relationship managers will be with you every step of the way, from arranging your initial first tranche of stock portfolio lending right up to make sure your last tranche stock portfolio loan is issued.

Liquidity

Make an immediate purchase, take advantage of an opportunity or be assured of a line of credit for short-term borrowing.

Leverage

Introduce strategic leverage to your investment portfolio – it could amplify returns in a rising market, though a market fall would amplify losses.

• With a leveraged investment, you would be responsible for repaying the loan and interest on it. Adding leverage to your portfolio may amplify returns in a rising market, although losses may also be amplified if the market falls
• Interest rates on the loan may exceed any gain on the investment. They may also change during the term of the loan
• There may be an extra risk if you borrow in a different currency to the currency of the assets in your portfolio
• We recommend you consult your tax adviser before using the service

We will review your portfolio and, if the value drops, or the value of your exposure increases, or if there isn’t enough collateral to support the exposure, our lenders will ask you to add more cash or securities to your portfolio. If this isn’t possible, we may have to sell some or all of your assets.

Understanding Securities-Based Lending

Generally offered through private institutions, family offices and private banks, lending against your stock loan portfolio is mostly available to people who have a significant degree of wealth and capital.  Client’s stock portfolios would tend to be valued from USD500,000 upwards as minimum loans for blue chip shares traded on major stock exchanges tend to be from USD100,000 upwards. People tend to seek out securities-based portfolio loans if they want to make a large business acquisition or if they want to execute large transactions like real estate purchases. Such loans may also be used to cover tax payments, vacations, or luxury goods by taking a securities-backed loan.

Here’s how the process works.

• Lenders determine the value of the loan based on the borrower’s investment portfolio. In some cases, the issuer of the loan may determine eligibility based on the underlying asset. It may end up approving a loan based on a portfolio consisting of blue chip liquid and less liquid stocks.
• Once approved, the borrower’s securities—the collateral—are deposited into a custodian account.
• The lender becomes a lien-holder on that account.
• If the borrower defaults, the lender can seize the securities and sell them to recoup their losses.

In most cases, borrowers can get cash within just a few days. It’s also relatively cheap—the rate borrowers are charged is generally variable based on the 30-day London InterBank Offered Rate (LIBOR). Interest rates are typically two to five percentage points above LIBOR, depending on the sum.

Also known as securities-based portfolio borrowing or non-purpose portfolio lending, shares-based portfolio borrowing has been an area of strong growth for private institutions since the global financial crisis. In fact, stock portfolio-based lending accounts and balances have surged since 2011, facilitated by the steady rise in equities and record-low interest rates. Such credit is popular because it tends to be easier to obtain and requires far less documentation than a traditional loan.

Securities-Based Lending Funding Process

• Capital Recipient (or “client”) submits an inquiry for funding by providing a portfolio stock symbol or portfolio stock code and target transaction amount.
• We determine the viability of the transaction and calculate 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 the client to review.
• Terms are negotiated and finalized.
• We send contract documents to clients for review.
• The final contract is negotiated and signed.
• Both parties coordinate a delivery date with their respective brokerage.
• The transaction is funded normally in 3 to 7 days.
• Stock portfolio transactions can be funded within 1 day in extreme situations.

HOW WE CAN HELP WITH YOUR SECURITIES-BASED LENDING

• You will instantly Gain access to Money & Liquidity fast, privately, easily and cheaply using your publicly traded stocks and securities.
• Ponder this…as an expert, we have helped people like you fulfil their financial goals.
• Get liquidity for any purpose using your securities, reduce concentrated risk exposure and solve complex puzzles to permit you to instantly achieve your life goals.
• Almost all Major Worldwide Stock Exchanges are accepted as well as borrowers from around the globe.
• Now you can PROTECT your stock portfolio and GET CASH with our non-recourse stock loan or other structures.
• We lend against securities free trading on most foreign exchanges, message us now to get solutions to your specific needs.
• Many clients wisely use our stock loans to invest in their business, to buy real estate, to buy luxury items, boats, cars, rare art etc. or just to have cash on hand.

 Major Benefits Of Securities-Based Lending

1) You are not personally liable for the loan if you choose the non-recourse portfolio lending option when taking a securities-backed loan.

2) You are not personally guaranteeing the loan, so you may not be required to disclose to others the details of the stock loan, for privacy many borrowers prefer this feature benefit.

3) You will have a clean personal balance sheet that leaves room for other refinancing and acquisition financing opportunities and can make borrowers more attractive to lenders.

4) Our stock portfolio lenders have no recourse against you  – They cannot go after you personally if the lender sustains a huge loss of money on your loan, The stock lender takes the loss and all the risk, you are not at risk of repaying any losses from a sudden collapse in the price of the securities pledged for your loan.

5) The lender’s loan structure provides access to you to ongoing sources of capital with other financial companies because their stock loan is non-recourse.

6) You can walk away from the loan, the day after the loan is funded and not be liable for any future interest payments or principal repayment with stock lending non-recourse loans.

7) Your personal Credit, financials, income, and tax returns do not come into consideration with a non-recourse loan.

8) In the case of a default, the lenders can only seize the collateral pledged for the loan and cannot go after any of your other personal assets.  You are safer with a non-recourse loan and have more options and security than with a recourse bank loan or a margin loan.

9) You do not have to disclose liability on financials, partners, or other financial lenders due to the fact that you are not obligated to pay back the loan and for you this may be a major benefit why you want this structure for privacy and so it does not impact your personal financial statement.

10) You have less risk and you do not have a forced obligation for a balloon payment so if in the future… you lack money then you can easily decide to walk where with a recourse balloon payment loan with a bank or brokerage you would be forced to pay it off risking all your other personal assets.

When you, as a borrower, take out a large recourse loan with a financial brokerage or bank you put everything you own at risk if the collateral collapses.  Our lender’s non-recourse loans are a huge benefit for you as you are able to enjoy all the benefits of a non-recourse loan while also offering you the benefits of realizing upside appreciation if your collateral increases in value.

We are not legal or tax advisors.  All 10 of these benefits are at the direction of your legal and tax advisors.  You should always consult your legal and tax advisor for specific advice on any loan considered.

International portfolio loans and global stock loans and share loans are offered for our global clients in North America, Asia, Europe Share Financing, the Middle East, Central America, South America and Africa. The above details on stock loans and secured loans available are a general overview. Please refer to terms in Stock Lending Term Sheets and  Stock Loan Closing documents for specific terms applicable to you.

THE SECURITIES PORTFOLIO LOAN LENDER YOU CAN TRUST

Our Specialty:

• Portfolio Loans and Securities Loans
  
• Providing you with portfolio stock loans for large-cap and small-cap stocks.
  
• Closing your loan quickly and efficiently.
  
• Helping you mitigate your portfolio risk through diversification.
• Providing you with liquidity.
  
• Offering flexible loan packages tailored to your individual needs.
  
• Securing competitive interest rates.
  
• Providing you with your personal account executive to walk you through the process.
  
• We speak to over 15 stock portfolio lenders on your behalf securing the best stock 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 the success of receiving the stock loan just before the disbursement of funds.

PUT OUR EXPERIENCE ON YOUR SIDE

Why Work With Platinum Global Securities-Based Loans

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 stock and share financing markets.

PERFORMANCE AND BENCHMARKS

Our consultants and share portfolio 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 NOT JUST STOCK PORTFOLIO LOANS AND LENDING

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 stock 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 every day and all-times basis to verify the 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 debts and equity transactions, we have forged alliances with many of the top international investment houses, family offices, private lending institutions and private 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.