Creative Options for a Growing Business

When you are trying to secure funding for your business, we understand that you have a number of options at your disposal. At International Funding Group, we choose to cater plans to a client instead of trying to fit a client into one of our solutions. Our financing options, such as stock loans, give you the ability to get creative in acquiring the money you need without putting you or your company at risk.

How It Works

We allow our clients to use publicly traded stock as collateral for a loan that features a low interest rate, eliminating the risk of a margin call. Thanks to our large funding capacity and emphasis on fast, flexible solutions, we can provide you funding in as little as seven to 10 days as long as your stock ownership qualifies.

There are many benefits to working with us on this solution, including:

  • Loan terms of 3 to 5 years with a one- to 2 year pre-payment lockout
  • A payment structure that features quarterly, interest-only options
  • There is no personal recourse if you default on the loan, as we only hold the stock as collateral
  • We do not have margin maintenance requirements
  • You maintain the benefit of potential appreciation of the securities
  • Loan-to-value ranges between 40 %  and 80 %

 

You can get started exploring your options today by simply contacting one of our International Funding Group representatives.

Frequently Asked Questions

Q: How can International Funding Group secure me more money than my broker can, or, in some cases, when my broker cannot lend me money at all?

A: The Securities Exchange Commission placed restrictions on which stocks brokers can lend against, and on how much they can lend their customers against “marginal” securities. Per our network of conventional lenders, International Funding Group has a greater range of options available to it.

Q: Why can't my broker hold the shares for International Funding Group during the loan term?

A: Stockbrokers are not set up to guarantee that their customers, to whom they owe their first loyalty, will not sell shares. In the case of an emergency devaluation, individual brokers are often overworked and unavailable to make emergency trades to protect even their clients, much less International Funding Group or our network underwriters.

Q: Where does International Funding Group keep its stock once transfer is complete?

A: International Funding Group or network underwriter maintains stock with reputable brokerage firms such as Scot Trade Securities and Merrill Lynch. The accounts, in addition to traditional federal SIPC Insurance, also enjoy $150 million in private insurance for stocks within our network.

Q: Why is there a delay from the delivery of my stock to the funding of the loan?

A: Because of recent changes in the law, stock transfer agents are no longer able to verify clear ownership of securities not in their physical possession. International Funding Group requires the time to verify clear ownership of any issues received. Prior securities counterfeiting problems and DTC transfer frauds have created the need for these increased security measures, which protect both the borrower, International Funding Group, and its network.

Q: How does International Funding Group achieve payment?

A: By official bank check sent by Federal Express Overnight or federal funds wire, directly into your checking or savings account.

Q: Can I redeem my loan early?

A: Yes. Your loan can be redeemed anytime usually with no prepayment penalty. This can be accomplished by either sending the outstanding balance to underwriter, or by calling at anytime and asking to liquidate the portion of stock, used as the foundation for your loan, necessary to pay the outstanding balance. In which case the balance of the stock will be returned to you promptly.

Q: Do I retain proxy (voting) rights for my stock?

A: No. Unfortunately it is impossible for underwriting, which are lenders, not a stock brokerage firm, to pass proxy rights through for the stocks we receive.

Q: Will I continue to receive dividends?

A: Yes. All dividends received for the stocks you have will be forwarded to you. For your benefit, should underwriting liquidate a portion for the stock (for example should the stock drop below the outstanding balance of your loan, or for other reasons permitted under the lending agreement) you will automatically be reimbursed for any dividend lost as a result of the exercise of discretion.

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