Quick and easy access to securities backed loans with rates between 2.5% to 4.5% fixed. Loan terms from 3, 5, 7 and 10 years. Access funds in as little as 7 to 10 days.
1. Securities Backed Loans
Prepared by: Aaron K. Gilbert, President
Optimum Funding Group, LLC
10940 S. Parker Road, #772
Parker CO 80134
2. Securities Backed Lending
โข Investors can utilize
their securities
portfolios of Stocks,
Bonds, Options,
Mutual Funds and/or
U.S. Treasuries to
secure quick access
to funds at great low
interest rates.
3. Loan Purposes
Any personal or business
purpose is acceptable
โข Payoff personal or
business debts
โข Payoff tax liens
โข Take advantage of
business opportunities
โข Buy or refinance Real
Estate
โข Take a long vacation trip
around the Worldโฆ
4. Benefits
โข Fixed interest rates between 2.5% and 4.5%
โข Interest Only quarterly loan payments
โข Loan terms of 3, 5, 7, or 10 years
โข No credit or income verification
โข Funds may be used for any purpose including personal or
business use
โข Non-recourse loan. The only collateral are the pledged
securities - not real estate or other personal property.
โข Loans available for up to 80% of the securities value
โข The borrower keeps all dividends and upside market
appreciation on the securities
โข Domestic or International securities accepted
5. How It Works
โข Loan-to-value ratio and the interest rate are driven by what securities are
pledged. The more liquid and actively traded securities the higher the
loan-to-value ratio and lower the interest rate
โข No principal amortization or loan prepayment
โข At the end of the loan term the loan may be renewed, refinanced, or paid
off
โข At pay off, the exact number of shares initially pledged is returned to the
borrower
โข 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.
6. Documentation Required
โข OFG Loan Application
and Fee Agreement
โ Obtain at:
www.securitiesbacked
loans.com
โข Copy of most recent
Brokerage Account
Statement showing
securities that are
eligible for financing.
7. Fees Collected
โข Processing Fee: $300.00
โข Origination Fee: Between 2% and 5%
depending upon the size of the loan funded.
LOAN AMOUNT FEE
$50,000 - $99,999 5%
$100,000 - $499,999 4%
$500,000 - $999,999 3%
$1,000,000 + 2%
8. Criteria
โข The stock must be free-
trading without any
restrictions.
โข Minimum Loan Amount:
$50,000
โข No Maximum Loan Amount
โข Retirement funds (401k's,
pensions, etc), CD's, do not
qualify for this program.
9. Time Frames
Here is the time-line and a quick overview of the steps for the completion of the transaction.
โข Submit a Request for Quote. Once we receive your request a Term Sheet is issued. Usually
within 24 hours.
โข The borrower will be asked to complete a simple 2 page application form. Neither income or
credit is not asked. It is simply who you are and where do you want the funds wired to.
โข A conference called is placed between the borrower and the Funder to answer any questions.
โข Loan Agreement is sent to the borrower to sign and they then transfer the securities to the
Funder.
โข Funder tracks the closing price of the shares for 3 days to obtain an average price.
โข The loan is disbursed based upon the loan-to-value previously agreed upon.
โข Borrower makes Interest Only payments quarterly.
โข Any dividends from the securities is credited to the loan payment and any excess is returned
to the borrower in the form of a check.
โข Note: Dividend payments made on behalf of the borrower towards the loan are not taxable.
โข At the end of the loan term the loan is paid off and the same amount of shares are returned
to the borrower.
โข The time frame from start to finish may be as little as 7-10 days.
10. Margin Accounts vs. Securities Backed
Loans
quot;What is the difference between Margin Loans and Securities Backed
Lending?quot;
Here are a few of the differences:
โข Margin loans can only go up to 50% of the value of the stocks - we
are able to go to 80%.
โข Margin loans are not allowed to lend on stocks valued at less than
$10.00 per share - we offer the loan on any price share.
โข Margin loans rates are typically 5-8% ARM's - We are between 2.5 -
4.5% fixed rate.
โข Margin loans are FULL-recourse - ours are NON-recourse with no
personal liability. The quot;callquot; on margin loans is set at 80% of the
stock value and they have one day to cure โ our quot;callquot; is set at 80%
of the loan (approximately 60% of the stock value) and we offer 5
days to cure and since ours are non-recourse if the borrower cannot
cure the loan default they can simply walk away.
11. Simple Steps
โข Complete a Loan Quote Request Form listing the number
and name of securities and symbol or send us a copy of
your most recent brokerage account statement. We will
quickly determine the amount of the loan and the interest
rate available and prepare a loan proposal for you.
โข If you agree to the terms the next step will be for you to
provide proof of ownership of the securities. We will then
verify the values and within a few days the loan proceeds
are transferred into your bank account.
โข Upon repayment of the loan at the agreed upon terms the
same amount of securities will be returned to you. It's that
simple!
12. Where to Next?
โข If you have any further questions or if you
wish to obtain a loan quote on your securities,
then please go to:
www.securitiesbackedloans.com
โข Within approx. 24 hours of submitting a Loan
Request Form, you will receive a proposal of
the terms and conditions we are able to offer
you.