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Margin Loans vs Securities Based Lending

Recently the question has arisen, “What is the difference between Margin Loans and Securities Based Lending?”

Here are a few of the differences-
Margin loans can only go up to 50% of the value of the stocks – we are able to go to 80%.
Margin loans are not allowed to lend on stocks valued at less than $10.00 per share – we offer the loan on any price share.
Margin loans rates are typically ?5-8% ARM’s – We are between 2.5 – 4.5% fixed rate.
Margin loans are FULL-recourse – ours are NON-recourse with no personal liability.
The “call” on margin loans is set at 80% of the stock value and they have one day to cure ? our “call” is set at 80% of the loan (approximately 60% of the stock value) and we offer 5 days to cure and since ours are non-recourse if the borrower cannot cure the loan default they can simply walk away.

“What is your minimum and maximum loan amounts?”
Our minimum loan amount is $50,000 and there is no maximum loan amount.

“Can you lend against securities that are traded in another country?”.
Yes. Any security (stocks, bonds, mutual funds, T-Bills, options) that is publicly traded anywhere in the world qualifies for this program. There are some exceptions such as China, Venezuela and others. Please contact us for an update list of countries that are excluded.

And an update as to stock dividends.
If the dividends of the stock exceed the interest rate on the loan then the dividend proceeds are first credited towards their loan payment and the balance is given to the borrower.