For corporate borrowers and major shareholders:
If your company is stock market listed we can offer loans that are backed by these securities.
Our loan facility uses equities as loan collateral including those held back in treasury for a fixed period, typically a term of 1 to 5 years. A borrower may decide to enter into a transaction with Union Pacific using equities as collateral and may believe the stock will increase in value in future. Rather than liquidate the equity holding, the borrower transfers the shares as collateral to Union Pacific or to an independent custodian and receives the loan proceeds.
If the stock price increases during the loan term, the borrower retains 100% of the market value at the end of the tenor. This allows attractive terms, including lower interest rates than offered by other financing vehicles.
Our loans are non-recourse and importantly also non-purpose, which allows the corporate borrower to use the loan proceeds for whatever and any purpose. Whether used for business expansion, to retire more expensive debt, or for personal reasons, our corporate clients have total flexibility with their capital.
When you use the borrowing power of your eligible securities, you will have immediate access to the funds you need while still allowing you to pursue your long-term financial strategy.
A securities backed loan may be used for any purpose, including real estate investments, bridge loans, personal expenses, business expansion, debt/loan consolidation, luxury purchases or simply providing a hedge for your current investment portfolio.
By having a securities backed loan in place, you do not need to sell assets (which may have tax implications) or secure a last-minute loan at unfavorable terms and rates, so you’ll be better prepared for whatever comes your way.
Finding liquidity using traditional lending sources can be challenging, expensive and time consuming. Banks and stock brokerage houses are an option, but typically have a large amount of red tape to navigate, less-than-desirable interest rates and LTV ratios and may involve intrusive credit checks.
We work closely with our clients to offer a bespoke lending solution that is simple to understand and dynamic in delivery.