Frequently Asked Questions

Yes, the lenders that we work with are long term investors and they appreciate the liquidity that shares of a public company provides.  They are interested in making loans, but also need to protect their downside.

Unfortunately no, not all companies have the requirements to be used as security.  While there is no minimum share price, there are volume requirements.  

There are very few straight up "no's", however we are not currently lending to companies that are listed in mainland China.  There are lenders who will lend to Hong Kong companies, even if they have restricted shares.

There are a few fees:

Closing costs of $5,000 USD

Loan origination fee, which is a small percentage of the loan

Annual Administration costs of 0.35% of the outstanding loan balance

The loans are denominated in US dollars.

Providing all documentation is in order, the loan can be closed within 10 business days. 

The loan is structured as non-recourse with an initial term of 60 months.  Any and all dividends received during the loan term will be credited against the loan balance.  There will be no margin call after the loan has been advanced.