Asset Based Loan (888) 806-4768

Asset Based Loan explained…

Watch the video below to learn how an Asset Based Loan can work for you.

S&C Loan Consultants

Call Now for a Free Consultation appointment.

888-806-4768

______________________________________________________________________________________________________

Asset Based Loan:

A Stock Loan is a type of Asset Based Loan.  It is the lending of funds collateralized by shares of a publicly traded stock that you OWN, on any domestic or foreign stock exchange. It gives the borrower access to the liquidity of the assets  without actually selling the stock(s). An investor can easily leverage the value of his stock and achieve liquidity inside days.  The term of the stock loan is typically three to ten years and the shares are returned upon repayment of the loan.

There are many benefits that place a stock loan at the leading edge of decision making when attempting to leverage one investment instrument without selling outright because selling often isn’t a solid decision or the preferred choice.

But what about a margin loan?

It used to be, but sophisticated speculators and stockholders are moving from the margin environment to a hedged stock loan from a scattering of private banking groups who offer much more enticing terms. Compared with the traditional margin loans, it offers the flexibility of having the ability to walk away from the loan at anytime without hurting the credit rating or having to bring in extra collateral or cash.

A Non-Recourse Stock Loan – An Asset Based Loan with NO personal liability. A non-recourse loan is secured by some form of collateral, your securities. If there is a default, the borrower keeps the loan proceeds and the lender only claims the collateral. The borrower’s liability is limited to the collateral pledged for the loan. In fact, the borrower has the right to walk away from the loan, can you really call this debt?

With a non-recourse asset based loan, the individual or business entity is not held liable so there is never any effect on your credit record.

Use the cash for any purpose! Buy a home, buy a business, real estate, investment property, pay-off a mortgage, virtually anything.

A credit report is NOT required, and NO income or employment verification is done. It’s a True NO DOC Loan (NO documentation). With this type of asset based loan you can get your cash in as little as 7 days. It’s a quick and easy process! Just one simple phone call or application and you’ll receive the terms for your loan usually within 2 business days.

In a volatile market like we are all experiencing today, an asset based loan allows you, the borrower, the flexibility of letting your stock/mutual fund portfolio work for you. The borrower gets to benefit in the event of a market downturn, yet still retain upside potential should the price per share increase during the term of the loan. If the price of the stock significantly decreases, you can walk away from the loan, and if the stock increases, you can pay off the loan and keep the upside.

Increase your borrowing power without liquidating investments by pledging eligible securities in your portfolio to secure financing to buy a home, refinance, business loan, capital investment, or for any other purpose. Using securities as collateral makes sense, especially if you need to borrow more than a lender is willing to provide or if you want to avoid selling off personal assets.

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 value amount, forfeit the shares without paying back the loan (non-recourse) with no liability or effect on your credit rating.

Here a just a few ideas for the use of the Asset Based Loan funds:

• Use the Loan Funds to buy a home/property with NO mortgage
• Use the Loan Funds as a “Down Payment” to buy a home & Apply for a Mortgage
• Use the Loan Funds as a “Down Payment” and obtain “Seller” Financing
• Pay Cash for the home and apply later for a “cash-out refinance” with Mortgage Broker
• Start a business.  Finance a new business with your own capital investment. Easy business financing!
• Capital reinvestment in current business.  Accounts Receivable can also be the collateralized asset.
• Pay off high interest credit cards or other secured or unsecured loans.
• Non-Purpose Loan: Funds can be used for anything, (except purchasing additional securities on margin).

Prospective Stock Loan Borrowers: Self-Employed, Stated Income, NO DOC, Stated Assets, Bad Credit or No credit, Foreign Nationals, Retired, Unemployed, ineligible for Full Doc, Owner-Builder Construction, small and large business owners, etc. It’s very difficult for these borrowers to obtain traditional financing today.

Difficult Properties to Finance: Condo Hotels, Condo Conversions, NEW condo projects, Short-Term Rental homes, unique properties, residential & commercial land, log homes, modular homes, co-ops, etc.

Mortgage Broker: Your client can apply for a mortgage. The Stock Loan can be used as a “down payment” for the purchase of the home and the mortgage financing. You get TWO loans.

Real Estate Broker: If your client is “short” on cash to buy a home, the Stock Loan is perfect. Or your client can’t qualify for a mortgage, but owns securities that can be used to pay CASH for the home. Seller financing is an option, because buyer has the Loan Funds to negotiate a successful sales contract.

Securities Owner: Why SELL your securities NOW? Many of us know that eventually most securities will recover and increase in value. KEEP your securities and enjoy the appreciation, dividends, value increases that belong to you. Pledge your securities as collateral and get the cash you need. Also, selling your securities may trigger a capital gains tax.

As you know, there are thousands of securities ranging from Penny Stocks to Blue Chip Stocks and everything in between. A Stock Loan request is carefully evaluated based on many different factors.

For more information, enter your contact information and one of our loan consultants will get back with you within 24 hours.

______________________________________________________________________________________________________

ASK FOR A *FREE* CUSTOM QUOTE – NO OBLIGATION - *FREE* CONSULATION

______________________________________________________________________________________________________

Features of a Stock Loan:
›  Flexible Lending terms: Several months to several years  ›  Inexpensive:  Below market, interest only payments › Non-Recourse:  Never at risk for more than the pledged assets ›  Use of Funds:  Virtually no restrictions on loan proceeds	›  Simplicity:  No credit or loan review approval process  ›  Quick: Loan closings typically within a week ›  Access to Capital:  from $30,000 to $100 million ›  Upside:  Borrower can benefit from asset appreciation

______________________________________________________________________________________________________

.

______________________________________________________________________________________________________

ASK FOR A *FREE* CUSTOM QUOTE – NO OBLIGATION – *FREE* CONSULATION

______________________________________________________________________________________________________

.

____________________________________

Asset Based Loan Blogosphere

Asset based lending hedge funds

The Asset-based lending hedge funds are the system of lending hedge funds to a person while keeping the asset of a person as a security measure. The Asset-based lending hedge funds are newly offered schemes by many hedge fund companies. [...]

Asset Banks & Asset Based Loan

http://rgfunds.com. A great overview of how an Asset Based Loan and bank can work. Visit the site above for more information on this and various alternative investment opportunities. [...]

Canadian Asset Based Lending Solutions

Canadian business owners and financial managers continue to hear the term ‘ Asset Based Lending ‘ in the context of the Canadian commercial financing environment. [...]  Asset Based Loan