This document discusses borrowing against marketable securities through InSource Capital. It offers loans of 70-90% of the portfolio value at interest rates as low as 1.6%, with funds available within 7-10 business days. Unlike margin loans or non-recourse stock loans, these loans do not require transferring title of the underlying securities. Qualifying securities include stocks, mutual funds, bonds, and ETFs. Common uses of the funds include business financing, down payments, and real estate purchases.

1. Borrowing Against
Marketable Securities
Brian Link
brian@InSourceCapital.com
818-783-7462

2. About InSource
 Founded 2001
 Focus on Business Financing
 Specialty in Franchise, Equipment
Financing, Start-Up, Expansion, Working Capital

3. Securities Based Financing:
A New Lending Option
 What it is, and isn’t
 The Lending Process

4. 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%

5. 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?

6. 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

7. 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

8. Our Lending Process
Client completes Questionnaire.
Provides Statement for review
Statement is reviewed.
Client ID verified
Term Sheet prepared and
reviewed with Client

9. Our Lending Process
Client introduced to Brokerage firm
New account established and transfer commenced
(NO TITLE TRANSFER)
Loan Paperwork prepared and reviewed
Funds available typically within 48 hours

10. The Basics
Interest 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.

11. 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

12. What Qualifies
What Doesn’t Qualify What Does
 Private company stocks  U.S. and selected non-U.S. stocks
 Restricted stocks  Mutual Funds
 Stocks with little or no trading volume  U.S. Treasury notes/bills/strips
 Real Estate  U.S. government agency bonds
 Medium-term notes (MTNs)  Municipal and corporate bonds
 Standby Letters of Credit (SBLCs)  Selected bank CDs
 Some foreign securities  Fannie Mae, Ginnie Mae CMO
 401K - Managed pension plans  Exchange-Traded Funds (ETFs)
 Publically traded REITs
 Unit Investment Trusts
 Selected bank CDs

13. Most Common Uses
 New Business Financing
 Down Payments for Other Financing
 Purchase of Existing Business or Real Estate
 Bridge Loans
 REO/Fix and Flip

14. For More Information, Call
Brian Link
InSource Capital Services
brian@InSourceCapital.com
818-783-7462