borrowing against marketable securities
DESCRIPTION
TRANSCRIPT
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About InSource Founded 2001 Focus on Business Financing Specialty in Franchise, Equipment Financing,
Start-Up, Expansion, Working Capital
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Securities Based Financing:A New Lending Option
What it is, and isn’t The Sales Process The Lending Process
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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%
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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?
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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
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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
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The Sales Process
Rule #1: Know your Client…. What do they want to do? What resources do they have?
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The Sales Process
1. Complete Questionnaire2. Get Copies of Recent Account Statements3. Deliver to Brian Link
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Our Lending ProcessClient completes Questionnaire.
Provides Statement for review
Term Sheet prepared and reviewed with Client
Statement is reviewed. Client ID verified
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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
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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.
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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
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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
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Most Common Uses
New Business Financing Down Payments for Other Financing Purchase of Existing Business or Real Estate Bridge Loans REO/Fix and Flip
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For More Information, Call
Brian LinkInSource Capital Services