Stock as Collateral
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  1. #1

    Stock as Collateral

    Hello All,

    My client has a $5M portfolio of public stocks and needs $2.5M cash out.

    Who will fund this deal?

  2. #2
    1) Are they marketable/marginable?
    2) Are they restricted or unrestricted?
    3) Can they prove ability to payback?
    Last edited by Quick Funding Solutions; 07-05-2018 at 12:20 AM.

  3. #3
    Senior Member Reputation points: 227882
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    Funny question..... Why can't he just sell the stock?

  4. #4
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    A.B. Nicholas won’t do it?

  5. #5
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    Boris Pinkhasov I know he dabbles in this space but when it comes to money i tell everyone i give a referral to run it all by an attorney. Boris Pinkhasov

    Boris Pinkhasov
    O.(973) 200-8232
    F. (888) 661-7657
    C. (917) 436-5545
    TF646)558-7055 EXT 204
    Boris@stocks2cash.com
    www.Stocks2cash.com
    Marcus Clapman | Business Development | Cresthill Capital
    (High Commissions Payout Group)
    覧覧覧覧覧覧覧覧覧覧覧覧覧
    Tel: 917-521-6528 | Fax: 212.671.1473
    Email: bizdev@cresthillcapital.com
    http://www.cresthillcapital.com

  6. #6
    Thanks all.

  7. #7
    Karen37a
    Guest
    Stock is supposed to be used with Margin as per rules on the exchanges that is really the only way they recognize it legally. Apart from that people make 3rd party agreements where they will have their stock pledged to a company or bank in a private transaction.

    The problem with this is keeping tabs on the stock to make sure it doesn't get sold or margined again etc. It also depends on the quality of the stock and the exchange . Stocks under 5$ are considered penny stocks.

    Another problem is if there is a discrepancy there is no legal obligation by the 3rd party to uphold the contract.

    Most firms do not do this anymore because there is really nothing in it for them.

    Ceos who own major stock might be able to do it, but Goldman recently had a problem where someone went upside down on the stock and they took a loss for millions

  8. #8
    Karen37a
    Guest
    If he had bonds Non convertible baa or better

    Munis A1 , A

    Corporate baa

    You can pm me I know where to go

  9. #9
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    We can process accounts as low as 150k. No maximum limit.

    We can leverage the following:

    キ Securities
    キ Money Funds
    キ Mutual Funds

    Anything except cash, private stock, or physical assets.

    If you have access to any of those items we can arrange access to an account in about 5 working days if everything goes as usual.

    The client has to pledge securities in the account and can borrow against those securities. The lender determines your available credit based on the value of those securities as well as the eligibility.

    The investments in the account are not frozen and can be managed or traded as long as there is sufficient collateral to support the loan.

    The funds can be used for either personal or business reasons.

    The interest is charged on a per diem basis on only the outstanding loan used.

    The rate is based on a spread on the 1 month LIBOR rate which currently is approximately 0.57%. The rate is adjusted weekly. Depending on the size of the account a substantial discount of the spread can be applied.

    For example I have clients that are under a 2% rate and originally started less than 1.5% recently.

    There is approximately a 4 day approval process.
    Mike Lewis - commercial real estate loan broker / owner
    No up front fees loan broker
    Commercial real estate loans: Acquisition, refinance, construction and FAST bridge loans from $200k +

    tel/voicemail: 937-964-5355
    cell/voicemail: 440-637-5646
    corporate email: mikelewis@michaellewisgroup.com

    www.linkedin.com/in/cigarmike

    Veteran Owned

    WE CO-BROKER with an even 50/50 split and we both get paid by wire at close.

    We issue a combination mutual NDA / fee split, you introduce your CRE clients to us stating simply we handle your commercial real estate loans, we take it from there and keep you in the loop. When a loan you referred closes, you get paid at close by wire.If you can work with that please do not hesitate to contact us. Our loan forms are vanilla with no company name.

    Michael Lewis Group Commercial real estate loans

    http://michaellewisgroup.com/index.html

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