|
 |
NO LOAD, NON-RECOURSE STOCK LOAN
We have built a global consortium of lending institutions that provide private funding for our borrowers.
McKinley Infocapital, Inc. is the premier provider of no-load stock loans. We provide no-load, non-recourse stock and mutual fund portfolio loans with up to 80% LTV. Through our global network of financial institutions, we access below market, fixed-rate interest loans which facilitates our clients' ability to access capital in a tax-free and private transaction without having to sell stock into the market.
With a loan through Capital Stock Lending, you can receive liquidity from your asset today while protecting your downside and maintaining upside potential.
What We Do:
Secure stock loans against thousands of securities - including OTC, Pink Sheets & foreign exchanges;
Secure either:
- High LTV, longer term, low interest rate loans, or
- Low LTV, short term, high interest rate loans.
Help individuals access the capital they need tax-deferred, while still benefiting from upside appreciation.
How it works:
- Flexible Lending terms: Several months to several years
- Inexpensive: Below market, interest only payments
- Non-Recourse: Never at risk for more than the pledged assets
- Use of Funds: Virtually no restrictions on loan proceeds
- Simplicity: No credit or loan review approval process
- Quick: Loan closings typically within a week
- Access to Capital: from $50,000 to $10 million
- Upside: Borrower can benefit from asset appreciation
|
|
|
 |
|
|
|
|
McKinley Infocapital Loan Process
At McKinley Infocapital, we have put together a proven process to turn around your loan in as quick as 72-hours. We have streamlined the process so we can work together quickly to meet your immediate cash needs.
- Request loan quotes from McKinley Infocapital, online, via the phone, or by email here and you will have a response within a few hours.
- Receive loan quote(s) and term sheet(s) for review. Choose offer. One or more detailed proposal(s) are generated describing all loan features.
Attend conference call with HLLC staff to assure understanding of terms. This enables us to assure that the transaction is feasible and also affords the client an opportunity to ask questions prior to issuance of any loan documents.
- Execute/sign Term Sheet to lock in terms. This shows that you understand and accept the offer as you understand it, but does not bind you to accept or move forward in any way with the loan if you should change your mind. This document must be signed before the actual loan contract can be delivered.
- Receive formal loan documents. The loan docs are emailed to the client for review.
- Execute/sign Loan Documents. These may be faxed to speed up the process.
- Transfer of stock collateral to custody of U.S. loan fund manager. Your broker will transfer your stocks, at your command, to our U.S. custodial account. If certificate, the certificate must be sent to a registered transfer agent first, which will add approximately 7 business days to the timeline.
- Loan closes, hedges settle. (Loan proceeds are received 3-4 business days after receipt of collateral and completion of hedging).
Loan Programs
We are able to customize loan programs to meet most borrowing requirements.
Our loans have ranged from a low of about $30,000 to a high of $50,000,000
and we have the ability to write loans well in excess of $100,000,000
| Product |
FREEDOM |
FLAGSHIP |
PRIME |
| Stock Markets |
NYSE, AMEX, NASDEQ small cap, NASDAQ NMS, OTC BB |
NYSE, AMEX, NASDEQ small cap, NASDAQ NMS, OTC BB, and OTC pink sheets |
NYSE, AMEX, NASDEQ small cap, NASDAQ NMS, OTC BB, OTC pink sheets, and
most foreign stocks |
| Price / Volume |
$1.00 per share min. Volume of $50,000 per day over prior 4 weeks |
$5.00 per share minimum. $200,000 per day average volume |
$50,000 per day average volume |
| Interest Rates |
Prime + 1 variable rate |
5.50% to 13% fixed for the term of the loan |
3.99% to 9.99% fixed for the term of the loan |
| Interest Payments |
Paid monthly |
Accrue to loan maturity or paid quarterly at the borrowers choice |
Paid quarterly |
| Loan to Value (LTV) |
50% to 80% LTV depending on the quality of the underlying stock |
75% to 90% LTV depending on the quality of the underlying stock |
35% to 75% LTV depending on the quality of the underlying stock |
| Loan Term |
2 to 5 years |
2 to 10 years |
2 to 5 years |
| Margin Calls |
None |
None |
Callable if portfolio value drops 20% below loan value |
| Pre-payment options |
Anytime |
None |
None |
| Notes |
Quarterly review of portfolio balance with the option to withdraw cash if the stock price increases |
Loans are available with limited capital appreciation accruing to the borrower. Interest rates are typically 3% lower for a capped loan |
Loan may be renewed at maturity at no additional cost |
| |
No margin calls at any time |
No margin calls at any time |
|
| |
Loan may be renewed at maturity at no additional cost |
Loan may be renewed at maturity at no additional cost |
|
|
|
|
|
