This type of lending allows the borrower to use their investments to obtain funds for personal or business use. Using your investments as collateral you are able to borrow money at low interest rate financing for up to 10 years.

Benefits
- Fixed interest rates usually between 3% and 5%
- Interest Only quarterly loan payments
- Loan terms of 3, 5, 7, or 10 years
- Low to No closing costs, broker and transaction fees
- Funds may be used for any purpose including real estate purchase, business expansion, etc**
- Non-Recourse Loan . The loan is only collateralized by the pledged securities - not real estate or other personal property
- Loans available for up to 80% of the securities’ value
- Borrower keeps all dividends and upside market appreciation of the securities

How It Works
- Loan-to-value and interest rate are driven by what securities are pledged. The more liquid and actively traded securities the higher the loan-to-value and lower the interest rate.
- No principal amortization or loan prepayment.
- At the end of the loan term the loan may be renewed, refinanced, or paid off.
- At pay off, the exact number of shares or collateral initially pledged is returned to you.
- Default trigger set at 80% of the loan amount ­ not 80% of the securities’ value like typical margin loans. For example: securities value of $1MM, loan of $800k, default trigger at $640k (80% of the loan amount). If the securities value fell below $640k the borrower could walk away from the obligation of repayment of the loan and securities and keep the original loan proceeds ($800k) or contribute cash or securities to bring value back to $640k.

Criteria
The stock must be free-trading without any restrictions and the borrower cannot own more than 10% or more in the company of the issuer.
Retirement funds (401k's, pensions, etc), do not qualify for this program.