Date post: | 14-Dec-2014 |
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About InSource Founded 2001 Focus on Business Financing Specialty in Franchise, Equipment Financing,
Start-Up, Expansion, Working Capital
Securities Based Financing:A New Lending Option
What it is, and isn’t
The Lending Process
What It Is, and Isn’t! Securities-Based Financing
Not credit or income based Funds available in as few as 7 to 10 business days 70 to 90% of Portfolio Value Rates as low as 1.6%
What It Is, and Isn’t Don’t Confuse with Similar Options
Margin Loans Non-Recourse Stock Loans Transfer of Title Stock Loans
How are we different?
Why not a Margin Loan? Advance Rates
They are limited to 50% We do 70% to 90%
Calls They need to maintain that 50% ratio We do not
Why not a Non-Recourse Loan These products have been on the market for over
a decade Title to the underlying securities is transferred to
the Lender What if the Lender goes out of business? As of July 2010, most transfer-of-title loans are
considered sales by the IRS
Our Lending ProcessClient completes Questionnaire.
Provides Statement for review
Term Sheet prepared and reviewed with Client
Statement is reviewed. Client ID verified
Our Lending ProcessClient introduced to Brokerage firm
New account established and transfer commenced
(NO TITLE TRANSFER)
Loan Paperwork prepared and reviewed
Funds available typically within 48 hours
The BasicsInterest rates – 1.6% to 5.50% Fixed and variable rates
available
Minimum/maximum line amounts - Minimum line amount is approximately $55,000, with no set maximum.
The Basics
Loan to Value – From 70% to 90%
Documentation – Limited
Fast Closing – From receipt of the Client’s statement to cash in hand can take place in as few as 7-10 days
What QualifiesWhat Doesn’t Qualify Private company stocks Restricted stocks Stocks with little or no trading volume Real Estate Medium-term notes (MTNs) Standby Letters of Credit (SBLCs) Some foreign securities 401K - Managed pension plans
What Does U.S. and selected non-U.S. stocks Mutual Funds U.S. Treasury notes/bills/strips U.S. government agency bonds Municipal and corporate bonds Selected bank CDs Fannie Mae, Ginnie Mae CMO Exchange-Traded Funds (ETFs) Publically traded REITs Unit Investment Trusts Selected bank CDs
Most Common Uses
New Business Financing Down Payments for Other Financing Purchase of Existing Business or Real Estate Bridge Loans REO/Fix and Flip
For More Information, Call
Brian LinkInSource Capital Services