Securities-Backed Lending
A securities-backed loan allows borrowers to access the inherent value of their freely traded stock position without having to liquidate their position in the open market. We provide several financing models including repurchase agreements (repo), reverse repurchase agreements, and collateralised stock loans whereby ownership of the securities remains with the borrower.
FCL collaborates and advises borrowers on optimal solutions to meet goals and objectives. The entire process is quick, transparent and confidential. Loan proceeds can be used for personal or business purposes, to leverage, diversify or hedge current market positions with no restrictions. Funding can be dynamic with loans closing in as little as 8 business days.
Global custodians are used where collateral is segregated and borrower has online access to pledged securities. We fund and service our own loans. We fund against publicly traded securities on most world public exchanges.
Loan terms are based on evaluation of the risk and future performance associated with the securities to be pledged as collateral. Loans are interest-only and non-recourse, the borrower has the option of simply walking away at anytime with no further liability. In the event of a loan default, there is no reporting to any credit bureaus or governmental agencies and no public notice is issued. There is no adverse consequence to the borrower’s credit.
Due to the unique tax and legal issues involved with securities-backed lending, borrowers should consult both tax and legal counsel.
For corporate borrowers and major shareholders:
If your company is listed on the stock market, we can provide loans supported by these securities.
The borrower's shares are only used as collateral and may increase in value in the future. The borrower can Apply for increasing the loan amount according to the MLA master loan agreement.
If the stock price rises during the term of the loan, the borrower shall retain 100% at the end of the term Market value. This arrangement allows attractive terms, including the provision of more than other financing instruments Lower interest rates.
Our loans are not only non recourse, but also non purpose, which makes the company borrowers The proceeds of the loan may be used for any purpose.
For individuals:
When you use the borrowing power of your eligible securities,
you will have immediate access to the funds you need while
still allowing you to pursue your long-term financial strategy.
A securitie-backed loan may be used for any purpose,
includingreal estate investments, bridge loans, personal
expenses, business expansion, debt/loan consolidation,
luxury purchases or simply providing a hedge for your
current investment portfolio.
By having a securities-backed loan in place, you do not
need to sell assets (which may have tax implications)
or secure a last-minute loan at unfavorable terms and
rates, so you’ll be better prepared for whatever comes
your way.
Finding liquidity using traditional lending sources can
be challenging, expensive and time consuming. Banks
and stock brokerage houses are an option, but typically
have a large amount of red tape to navigate, less-than-
desirableinterest rates and LTV ratios and may involve
intrusive credit checks.