Securities Backed Loans
Janus Commercial Finance accesses a diverse investment portfolio
and offers Securities Backed Loans from $100,000 and up. This type of
lending allows the borrower to use their investments (stocks, mutual
funds, bonds or other securities) to obtain funds for personal or
business use. Using investments as collateral it is possible to
borrow money at low interest rate financing for up to 10 years.
Benefits• Fixed interest rates between 2.5% and 4.5%
•
Interest Only quarterly loan payments
• Loan terms of 3, 5,
7, or 10 years
• No credit or income verification
• Funds
may be used for any purpose including personal or business use
• Non-recourse loan. The only collateral are the pledged
securities - not real estate or other personal property.
•
Loans available for up to 80% of the securities value
• The
borrower keeps all dividends and upside market appreciation on
the securities
• Domestic or International securities
accepted
How It Works• 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 the lower the interest rate
• No
principal amortization or loan prepayment
• At the end of the
loan term the loan may be renewed, refinanced, or paid off
•
At pay off, the exact number of shares initially pledged is
returned to the borrower
• 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.
Documentation
Required•
Loan Application and Fee Agreement
• Copy of
most recent Brokerage Account Statement showing securities that
are eligible for financing.
Fees Collected
• Processing
Fee: $300.00
• Origination Fee: Between 2% and 5% depending
upon the size of the loan funded. Please call for more details.
Criteria• The stock must be free-trading without any
restrictions.
• Minimum Loan Amount: $100,000
• No Maximum
Loan Amount
• Retirement funds (401k's, pensions, etc), CD's,
do not qualify for this program.
Simple StepsComplete the
Loan Quote Request Form
listing the number and name of
securities and symbol. We will quickly determine the amount of
the loan and the interest rate available and prepare a loan
proposal for you. 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. Upon repayment
of the loan at the agreed upon terms the same amount of
securities will be returned to you. It's that simple!
Time
FramesHere is the time-line and a quick overview of the
steps for the completion of the transaction.
• Submit a
Request for Quote. Once we receive your request a Term Sheet is
issued. Usually within 24 hours.
• The borrower will be asked
to complete a simple 2 page application form. Neither income or
credit will be asked for or verified.
• A conference called
is placed between the borrower and the Funder to answer any
questions.
• Loan Agreement is sent to the borrower to sign
and they then transfer the securities to the Funder.
• Funder
tracks the closing price of the shares for 3 days to obtain an
average price.
• The loan is disbursed based upon the
loan-to-value previously agreed upon.
• Borrower makes
Interest Only payments quarterly.
• 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.
• Note:
Dividend payments made on behalf of the borrower towards the
loan are not taxable.
• At the end of the loan term the loan
is paid off and the same amount of shares are returned to the
borrower.
• The time frame from start to finish may be as
little as 7-10 days.
CLICK ONE OF THE LINKS ABOVE TO ACCESS
THE LOAN QUOTE REQUEST FORM OR TO COMPLETE YOUR APPLICATION. |
