Check-list for applicant eligibility & acceptable types of securities for Security-backed Lines of Credit (SBLOC's)
Welcome to our 1st blogpost of 2012! This funding source was previously profiled on this blogfeed last year.
Link is http://SinCityFinancier.posterous.com/get-up-to-a-100000000-line-of-credit .
ELIGIBILITY:
Minimum price per share (or unit) is $5 with strong volume. Best terms for consistent trading above $10/share.Minimum average daily volume requirement is $50,000 per day on average.
Minimum portfolio value requirement is $100,000 with no maximum.Minimum initial withdrawal (draw) requirement is $55K and any amount thereafter. The difference between draw and release allocation may be used to pay monthly interest payments.
Foreign securities acceptable are Hong Kong, Canadian, European (EC) and selected non-euro markets that are at least $8/share. Minimum portfolio size must be $200K. Best rates for larger portfolios.
Restricted stock may be accepted if stock is otherwise eligible and if restriction ends within 2 months.
Pre-IPO stock can be funded 45 days after IPO (new stock listing) even with lock-ups, provided stock price/volume meets eligibility.
Interest rates are sliding scale to funds approved and vary from 1.2% to 4.5%
WHATS ACCEPTABLE: RELEASE RATE or LTV
* Publicly-traded, free-trading stocks over $5 50-70% of portfolio value * CD - maturity less than 1 year (transferable) 80-86% of portfolio value
* CD - maturity 1-2 years (transferable) 50-75% of portfolio value
* US Treasury bills, British gilts 90-97% of portfolio value
* CD - maturity over 2 years 50-70% of portfolio value
* Mutual Funds 70-92% of portfolio value
* Fannie Mae, Ginnie Mae CMO's 25-70% of portfolio value* US Government Agency Bonds 88-97% of portfolio value
* US Municipal Bonds 80-97% of portfolio value
* Corporate/Non-convertible Bonds Up to 72% of portfolio value
* Foreign Sovereign Debt Instruments 70-95% LTV depending on quality of instrument
* Exchange-traded Funds (ETF's) Up to 75% of portfolio value
* Unit Investment Trusts (UIT's) Up to 70% of portfolio value
* Corporate Bonds (investment grade) Up to 77% of portfolio value
* Investment grade Corp Bonds $50M & up Up to 97% of portfolio value
Globalcrossroadscapital.com isn't an advisor. Contractual clients questions on procedures of each lender, investor, or ABL funder listed on this blogfeed should be reserved for each $ source; if not already disclosed as a courtesy on blogfeed.
Jeffrey D. Allen, CEO
www.Globalcrossroadscapital.com
US Vet-owned, SBA-certified, DUNS-listed IR media firm
Comp consultation 500+ finance topic blogfeed
http://SinCityFinancier.posterous.comskype phone: SinCityFinancier
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