EQUITY BASED FUNDING PROGRAM
(Asia)
It is a fairly simple transaction. They're flexible and relatively easy to get. Any publicly traded stock can be used as
the basis for a loan.
Some interestting points are:
- TYPICALLY LOWER RATES THAN OTHER FORMS OF CREDIT.
- ACCESS TO CASH WHEN YOU NEED IT.
- APPROVAL WITHIN 3-5 BUSINESS DAYS WITH NO CREDIT CHECKS.
- NON RECOURSE LOAN (THE ONLY COLLATERAL IS THE PLEDGED SECURITIES).
- INTEREST RATES ARES LOW (TYPICALLY LOWER RATES THAN OTHER FORMS OF CREDIT).
- LOAN TO VALUE RANGING FROM 60 -65%
- LIMITED DOCUMENTATION - NOT CREDIT OR INCOME BASED.
- DIVIDENDS PAID DIRECTLY TO CLIENT.
- CLIENT RECEIVES 100% OF PORTFOLIO APPRECIATION.
- WIDE RANGE OF ELIGIBLE SECURITIES.
- FUNDS MAY BE USED FOR ANY PURPOSE (REAL ESTATE PURCHASE, REFINANCE, BUSINESS EXPANSION, ETC.)
Options if borrower defaults : If the value of the pledged stock has
fallen below the amount the customer owes (including interest), then
the customer can simply walk away from the loan, turning over the
stock to the lender and keeping the money that had been loaned - This is
a non recourse loan so if the borrower defaults he (she) keeps the
original loan proceeds and the lender keeps the pledged securities.