what is the stock loan process?
The first step is to schedule a meeting with me to assess your needs to ensure that our product is suitable for you.
We accept eligible securities ranging from blue-chip stocks to penny stocks, lending against freely traded securities on various domestic and foreign exchanges.
If the first meeting is successful, we can generally provide a positive decision within 24 to 72 hours without requiring a credit check or financials.
Submission to underwriting:
Your request will be submitted to our underwriting team for loan terms.
Our in-house underwriting and credit committee is within SCG which allows for quick commitment without the need for outside approvals.
Loan terms and approval:
A 3-year term with a 5-year grace period is common, but terms can go up to 10 years fixed upon request.
After analyzing your collateral, I will provide a term sheet for your review and approval via a scheduled meeting.
Drafting of loan documents and collateral custodian account setup:
We will draft loan documents at no cost to you for your final approval.
Assistance will be provided to open a collateral custodian account in your personal or entity name for the placement of pledged shares.
Presentation of closing statement and disbursement:
SCG will present a closing statement of the exact loan proceeds for your final approval.
Once approved, the loan proceeds will be sent directly into your custodian account for immediate use.
Repayment process:
You will make quarterly interest-only payments until the loan is repaid and the securities are repatriated.