HEFFX to Offer Stock Loans in Asia
A stock loan allows borrowers the flexibility to gain access to the locked up value of their freely traded stock position without having to actually liquidate their position in the open market. The Squadron stock loan program is designed specifically for corporations, its employees, officers and major holders of publicly traded companies while providing total privacy to HEFFX clients. HEFFX goal is to help you obtain the best financing possible in today’s marketplace. If you’ve never considered stock loans or share financing before, HEFFX can help you understand how they work.
HEFFX collaborate with the borrower on the terms of each and every loan. The HEFFX process is quick, transparent and completely confidential. Loan proceeds can be used for personal or business purposes or to diversify or hedge current stock positions. Funding is quick with loans closing in as little as 7 to 10 business days.
HEFFX can process loans from $500,000 to $50,000,000 USD.
There are a number of key advantages to a securities loan.
Fast transaction closing & funding
No credit reporting in the event of a default
Private & confidential
Reduce the need for traditional bank recourse financing
No out-of-pocket expenses or up front fees
Competitive loan to value ratio (LTV)
Low interest rates
Fair share pricing using a three day average
Large loan amounts accepted
Loans terms are based on evaluation of the risk and future performance associated with the securities to be pledge as collateral. The term of the loan is typically three years, with interest payments on quarterly or semi-annual bases. Our stock 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 Squadron does not report to any credit bureaus or governmental agencies, nor file any public notice. There is no adverse consequence to the borrower’s credit.
Due to the unique tax and legal issues involved with stock loans, borrowers should consult both tax and legal counsel.
Stock Loan / Share Financing Process
Borrow submits inquiry for loan by providing a stock symbol and target loan amount.
Lender determines the viability of the loan, and calculates a loan-to-value ratio (LTV) and the interest rate, based on an assessment of both short and long term risks. Lender issues a term sheet to borrower to review.
Terms are negotiated & finalized
Lender sends contract to borrow for review.
Final contract is negotiated & signed
Both parties coordinate a delivery date with their respective brokerage firms or securities to fund the stock loan.
Stock Loan is funded.