Securities Lending
As a specialists in helping clients unlock significant liquidity using your securities as collateral, Julmor will help you secure high-value finance. Whether you are looking to purchase a new property or need to raise capital to invest in your business, the stock market or diversify risk, Julmor has the experience and ability to deliver the most competitive alternative finance solution for you.
Single Stock Loans
If you need access to capital, you can use a single stock portfolio as collateral. With a stellar reputation and track record delivering these highly complex transactions, Julmor is one of the only firms to operate in this part of the market.
What Can You Use Securities-Backed Lending for?
Because the application process for securities-backed lending is relatively straightforward and quick, it can be faster to apply and receive securities-backed lending than to obtain a green light on a mortgage. It’s for this reason that securities-backed lending is often associated with property financing. Securities-backed lending can be particularly useful if you want to buy an investment property or second home very quickly and you wish to bypass the mortgage application process for any number of reasons. Securities-backed lending can also be used to your advantage if you are competing to buy a property against cash buyers.
While securities-backed lending is often employed in property financing, it is also used in other situations. Borrowers might choose to use securities-backed lending to reinvest in the stock market, purchase art, diversify a portfolio of single stocks or simply a much-needed cash injection to cover an emergency or opportunity. Entrepreneurs or business owners often use securities-backed lending to leverage opportunities or start a business-related scheme, project or plan.
In scenarios where the proceeds of securities-backed lending is used to reinvest or diversify a portfolio, there is always an inherent risk. Asset prices and investments can fluctuate or lose value. You will need to make sure you will be able to redeem your loan should this happen. Ultimately, what you use securities-backed lending for will depend on your needs, expertise, broader financial situation and appetite for risk.
Who Is Eligible for Securities-Backed Lending?
As a general rule, you will need to have an investment portfolio of at least €100,000 before Julmor will consider you for this type of financing. Your securities will also have to meet Julmor’s eligible criteria before being considered for securities-backed lending. Julmor works with clients from around the world in a variety of different currencies for your ease and convenience. Julmor is used to working with international borrowers who have multiple business interests, investments, and income streams, and as a result, securities-backed lending is a truly global solution. Julmor is open to working with borrowers of any nationality.
What Is the Maximum Duration of Securities-Backed Lending?
Securities-backed lending varies in duration, there isn’t a cut-off or cap you need to keep in mind. However, if you need a long-term financing solution, securities backed lending may not best solution for your financing needs.
How Much Can You Borrow with Securities-Backed Lending?
Very generally, Julmor can offer offer securities-backed lending at around 50% of the value of your securities (i.e., a €5 million loan collateralised against securities with a marketable value of €10 million). In some cases, you will be able to get a little more, but this will depend on your situation and securities, and will very much be at Julmor’s discretion. The type of securities you own, how much you want to borrow, and the terms of your loan may also influence the amount you can borrow.
How Much Do Securities-Backed Loans Cost?
Securities-backed lending can be very attractive from a cost perspective. Especially compared to more ‘mainstream’ lending (i.e., consumer loans, credit cards, etc), fir this reason securities-backed lending can be very cost effective.The fees you pay will depend on your securities, your financial situation and the overall risk of the transaction. Securities-backed lending is granted on an individual basis, and as a result, there is no standard fee.
Case Study
Client: Irish high net worth tech investor
Loan Amount: €7,500,000 (50% LTV)
Share Value: €15,000,000
Shares type & location: NASDAQ listed shares, liquid, €800B market cap, trading volume 100m, shares in electronic form
Fees: 5.5% pa approximately