General Terms:
- Loan duration is three years with the borrower having the option to extend one or two additional years. The loan can't be prepaid during the three year period.
- Legends remain on the certificates!!!
- Interest rates of 3-4%. Interest
only payments are due quarterly..
- Corporation retains ownership of stock.
- This is a collateral loan - not
a margin loan. There will be no annoying margin calls in the
event of a price decline.
- Loan-to-value varies from 65% to
80%.
- The loan is non-recourse and thus not personally guaranteed by the corporation. If the stock falls significantly in value, you have the option to walk away from the loan without adverse consequences.
- Quick loan processing.
- Borrow up to 9.9% of your
company's market capitalization.
- Your company must have a market capitalization exceeding $250 million.
1) After speaking with one of our loan officers to see if your company's stock qualifies, you can usually receive a non-binding term sheet within 24 hours.
2) If the non-binding terms are generally acceptable, you simply fax in the signed term sheet. Within 2 to 3 business days you will receive a detailed contract and allowed ample time to conduct any due-diligence you deem necessary. You are not committed to the transaction until the actual transfer of the shares.
3) Funding can occur in as little as 3 business days following the acceptance of the contract.
Click here for more information on a Public Company Restricted Stock
Loan!