ZZStockLoans.com
Providing Liquidity Solutions via Securities-Based Loans (Stock Loans)
ZZStockLoans.com provides International Financing and Liquidity Solutions directly from Private Lenders for the Trade, Business, Investment, and/or Personal Needs of High Net-Worth (HNW) and Ultra-High Net-Worth (UHNW) Individuals. Our private capital firm is leading the way in global equities finance enabling you to gain instant access to Liquidity without selling your shares of Stock/Equity/Securities.
We provide Low Fixed-Interest(!) Non-Recourse(!), Non-Transfer-of-Title(!) Securities-Based (Stock) Loans (SBL) - also known as Loan-Stock Instruments (LSI), [Stock/Equity] Portfolio Loans, Leveraged Equity Loans (LEL), or just simply: Stock Loans - with the stocks/equities/securities that you own (and retain title-of-ownership throughout the term of the Loan) which you pledge as collateral for the Loan Funding Liquidity.
Loans are in Client/Borrower's choice of USD or local global currencies sent by SWIFT-BIC bank-wire that arrives within 24-48 hours on average after a Loan Application and Funding Process that takes approximately 1-2-3 weeks (i.e. 5-10-15 business (banking) days Mondays - Fridays, excluding banking holidays) - depending upon how fast the Client/Borrower completes that necessary steps of the Loan Application and Funding Process.
Do you have need for financial liquidity for trade, business, investment, or perhaps for personal needs - i.e. for any legal and lawful purpose?
Do you perhaps want to hedge and de-risk (or at least reduce the risk of) a currently-held securities position without forfeiting its title of ownership, appreciation of value, or receipt of dividends?
Do you want a Loan that does not entail any personal financial risk - with NO personal or business credit checks, NO personal or business income verification, NO personal or business tax returns, and NO personal or business liability whatsoever?
Do you want a Loan that allows you the option to walk away from the Loan at any time with no penalties whatsoever?
Does this sound too good to be true?
If so, then let us broaden your horizons and enlighten you.
If you own publically-traded securities like stocks/equity, bonds, ETFs, etc., then you can get money/liquidity/funding quickly, privately, confidentially, easily, and at low cost (i.e. low fixed-interest only Loan with NO UPFRONT FEES, NO LOAN APPLICATION FEES, AND NO HIDDEN FEES WHATSOEVER - our Loans are exclusively LOW FIXED-INTEREST ONLY, PAID ONLY AFTER LOAN IS APPROVED AND LOAN PROCEEDS ARE RECEIVED BY THE CLIENT/BORROWER) for any purpose using your publically-traded stocks/securities as collateral.
International, global Borrowers from around the are welcome!
The entire Loan Process - of Loan Application, Loan Approval, and Loan Funding via SWIFT-BIC Bank Wire-Transfer to Client/Borrower's Bank Account - can be completed FAST within 1-2-3 weeks (i.e. 5-10-15 business banking days) depending upon how quickly the Client/Borrower moves forward to provide all necessary documents detailed in the Loan Procedure below listed in the FAQs section.
ZZStockLoans.com provides International Financing and Liquidity Solutions directly from Private Lenders for the Trade, Business, Investment, and/or Personal Needs of High Net-Worth (HNW) and Ultra-High Net-Worth (UHNW) Individuals.
We provide LOW(!) Fixed-Interest(!), Non-Recourse(!), Non-Transfer-of-Title(!) Securities-Based (Stock) Loans (SBL) - also known as Loan-Stock Instruments (LSI), Loan Stock, [Stock/Equity] Portfolio Loans, Leveraged Equity Loans (LEL), or more commonly: Stock Loans.
Loans are in the Borrower's choice of USD or local global currencies.
Main Qualifications of the Borrower: Ownership of the Underlying Collateral of Stocks / Equity / Securities - Does the Client/Borrower actually own that collateral?
Minimum Loan/Funding Amount: $1 Million USD.
Maximum Loan/Funding Amount: NO MAXIMUM - The Loan amount that we can offer you depends upon the value of the underlying stock collateral. Financing Capital Liquidity Available Upwards of $1+ BILLION USD - it all depends upon the value of the underlying stock collateral. There has never been a Loan that we could not fund.
Loan to Value (LTV): A typical Loan is funded for between 40% - 70% of the underlying collateral's value. Average funding amount (i.e. Loan-to-Value (LTV)) is in the range of approximately ~55% of the value of the collateral with an Average Daily Trading Volume of at least $50k USD per day for at least 30 days - However, to reiterate: It all depends upon the value of the underlying stock collateral.
Average Loan/Funding Amount: $2-10 Million USD, but also on both sides of this price range.
The entire Loan Process - of Loan Application, Loan Approval, and Loan Funding via SWIFT-BIC Bank Wire-Transfer to Client/Borrower's Bank Account - can be completed FAST within 1-2-3 weeks (i.e. 5-10-15 business banking days) depending upon how quickly the Client/Borrower moves forward to provide all necessary documents detailed in the Loan Procedure below listed in the FAQs section.
A Stock Loan (also known as a Loan-Stock Instrument (LSI) or Loan Stock, a [Stocks/Equity] Portfolio Loan, a Securities-Based Loan (SBL), a Securities-Based Line of Credit (L/C), or a Leveraged Equity Loan (LEL)) is simply a Loan based upon the portfolio of a single stock/equity or the portfolio of multiple stocks/equities that you own (with Title-of-Ownership) which is pledged as collateral for the Loan. Loan Stock refers to shares of publicly-traded common stock or preferred stock that are freely traded and unrestricted which are used as collateral to secure a Loan from another party, i.e. the Lender. This type of financing is also known as Portfolio Loan Stock Financing as well as Securities-Based Lending (SBL).
This should not be confused with Securities Lending where the stocks/equities/securities are Loaned for the purposes of short-selling. Neither should Stock Loans be confused with Margin Loans.
The term Securities-Based Lending (SBL), i.e. Stock Loans, refers to the practice of making Loans using securities as collateral. Securities-Based Lending (SBL) provides quick and ready access to capital liquidity that can be used for almost any purpose such as buying real estate, purchasing property like jewelry or a sports car, investing in a business, or financing international trade.
Generally offered through large financial institutions, private banks, and private lenders, Securities-Based Lending (SBL) is mostly available to people who have a significant degree of wealth and capital. People often tend to seek out Securities-Based Loans (SBL) if they want to make a large business acquisition or if they want to execute large transactions like real estate purchases. Such Loans may also be used to cover tax payments, as investment/hedging strategies to serve as de facto Put Options, to purchase luxury items, real estate, vacations, etc.
Here's how the process works: The Lender determines the value of the Loan based on the Client/Borrower's investment portfolio. In some cases, the Lender may determine eligibility based on the underlying asset, i.e. the Actuals, e.g. the Lender may consider the value/price of the actual Physical Commodity of Gold Bullion when considering a Loan to an owner of Gold-Related Securities such as Gold-Mining Stocks and/or Gold-Related ETFs.
The Lender also may consider and end up approving a Loan based on a portfolio consisting of U.S. Treasury Notes or Corporate Bonds rather than Stocks. Once approved, the Borrower's securities - the collateral - are deposited into a Custodian Account. The Lender becomes a lienholder on that account. If the Borrower defaults, the Lender can seize the securities and sell them to recoup their losses.
The Lender may maintain physical control of the shares, often through a Custodian Brokerage Account in the name of the Borrower, until the Borrower pays off the Loan. At that time, the shares would be returned to the Borrower, as they are no longer needed as collateral.
With a Securities-Based Loan (SBL), i.e. a Loan-Stock Instrument (LSI) or a Stock Loan, the Borrower does not lend the stocks to anyone. Instead, the Borrower pledges the securities to a Custodian Brokerage Account opened in the name of the Borrower (who retains Title-of-Ownership throughout course of the Loan Period) as collateral for a Non-Recourse, Non-Transfer-of-Title Loan from the Lender.
In most cases, the Borrower can get cash liquidity within just a few days. Such credit is popular because it tends to be easier to obtain and requires far less documentation (and liability) than a traditional Loan.
In order to apply for a Stock Loan, the Client/Borrower will need to provide the Stock Brokerage's Account Statement that proves ownership of the proposed Stock/Equity to be pledged as collateral for the Non-Recourse, Non-Transfer-of-Title Stock Loan.
A Stock Loan (i.e. a Loan-Stock Instrument (LSI) or Loan Stock) is a relatively new financial instrument that leverages the higher returns possible with stocks, or stock-like instruments, to create a Loan-like (i.e. a fixed-rate) Loan-Stock Instrument (LSI) that is beneficial for both Lenders and Borrowers. The new financial instrument takes advantage of the fact that on average the stock market grows over time.
For example, a Lender (e.g. a Bank or Private Lender) will give a Borrower a certain amount in cash as a Loan. At the same time the Lender will also buy a certain amount of Stock or Stock-like security (e.g. an ETF or Mutual Fund). The Borrower will make periodic payments that will depend on the Loan amount and the value of the underlying Stock.
The philosophy behind this procedure to create a risk-free (i.e. hedged) portfolio is quite similar to the Black-Scholes formalism in option theory. Creation of the risk-free (i.e. hedged) portfolio is possible because the change in the underlying security offsets the change in the value of the Loan (i.e. the amount that the Borrower has to repay).
A Stock Loan (i.e. a Loan-Stock Instrument (LSI) or Loan Stock) combines fixed-rate instruments (e.g. Loans, etc.) with other financial instruments that have higher volatilities and returns (e.g. Stocks, Mutual Funds, Currencies, Derivatives, Options, etc.). A Stock Loan depends on the value of underlying security (e.g. Stock) in such a way that when the value of the underlying security increases, the value of the Loan decreases.
To reiterate: On average the stock market always seems to go up. Therefore, according to the described idea, with a Stock Loan (i.e. a Loan-Stock Instrument (LSI) or Loan Stock) the Borrower will have to repay less than he/she would in a traditional Loan situation. Thus the financial benefit of this Loan strategy for the Borrower is obvious (at least on average). The Borrower enjoys a lower cost of the Loan that might be associated with increased risk - i.e. depending upon the exact Stock/Equity used as collateral, volatile market conditions, other significant factors such as whether (and how) the Borrower hedges his/her own risk, etc.
It is important to understand that financial benefits with a Stock Loan (i.e. a Loan-Stock Instrument (LSI) or Loan Stock) for both the Borrower and the Lender come from an additional investment (i.e. a hedge) in a stock market that is associated with a particular Loan and from the Lender's ability to construct the risk-free (i.e. hedged) portfolio by properly balancing the relative amounts of the Loan and the underlying security. The situation is quite similar to the situation that arises when a risk-free (i.e. hedged) portfolio (that consists of an Option and an underlying security) is created in Option Theory.
With a Stock Loan (i.e. a Loan-Stock Instrument (LSI) or Loan Stock) when the value of the underlying security increases the amount that the Borrower has to repay correspondingly decreases compared to the amount to be repaid when a traditional Loan is employed. Conversely, when the value of the underlying security decreases the amount that the Borrower has to repay correspondingly increases. However, with a Non-Recourse Loan, the Borrower always has the option of walking away from repayment of the Loan without any penalties whatsoever.
The Lender benefits from higher returns that are not accompanied by increased risk (since the Lender will be hedging risk). The Lender's market risk (i.e. risk of losing capital) could still be minimal and independent of the underlying security value. This is achieved by constructing a risk-free (i.e. a hedged) portfolio that consists of the Loan and the proper amount of the underlying security.
For the Lender, the attractiveness and financial benefit manifest in terms of the market share among Borrowers. In addition, the Lender can charge an extra premium (and/or from profit via hedging the risk of the stock collateral). The Borrower's willingness to pay such an additional premium (if any - THERE ARE NO EXTRA PREMIUMS WITH OUR LOANS) is due to the reduced total Loan repayment amount as described above.
However, the Lender takes very significant risk offering a Non-Recourse Loan (as we do) using Stock as collateral since the default risk for the Lender increases when compared with the risk to Lenders who offer traditional Recourse Loans. If the Stock value decreases, the possibility that the Borrower may default increases. However, since on average the stock market goes up, this risk decreases with time. The Lender can further insure against default risk by charging a premium (if any - THERE ARE NO EXTRA PREMIUMS WITH OUR LOANS) and/or hedging the risk.
A Stock Loan (i.e. a Loan-Stock Instrument (LSI) or Loan Stock) is beneficial for both the Borrower and the Lender. For the Borrower, the LSI is more attractive than the traditional Loan because of the decrease in the amount that has to be repaid (i.e. as the Stock value rises over time on average). An additional benefit of a Non-Recourse Loan, the Borrower always has the option of walking away from repayment of the Loan without any penalties whatsoever.
Such financial instruments that can be used as the underlying security for collateral in a Stock Loan (i.e. a Loan-Stock Instrument (LSI) or Loan Stock) include - but are not limited to - Stocks, generic Mutual Funds, Mutual Funds based on Stock Indices such as Dow Jones Industrial Average (DJIA), Currencies, different kind of Derivatives like Futures, Forwards, and different kinds of Options, etc. The mathematical pricing model outlined by A. Morozovsky, R. Narasimhan, and Y. Kholodenko (2000) is equally applicable to all these cases.
As a financial instrument - contrary to the traditional Loan - the value of a Loan-Stock Instrument (LSI) is coupled to (and therefore depends on) the value of an underlying Stock. A Borrower borrows from a Lender a given Loan amount based on the terms and conditions of the Loan-Stock Instrument (LSI). The Borrower then makes periodic payments based on the value of the underlying security and the amount borrowed.
The Loan-Stock Instrument (LSI) can be viewed as the instrument in which the Lender invests in the stock market on behalf of the Borrower. If so, one can ask why wouldn't the Borrower invest for his/her self? The answer is very simple: The Borrower does not have money to do so. To have money invested on his/her behalf, the Borrower has to pay to the Lender in the form of an additional premium to the Lender.
Under the assumption of the continuous re-balancing of the number of shares, the amount of money that the Lender has (without additional premium) will be exactly the same as the growth of a normal fixed-rate Loan. This is due to the fact that the change in the underlying security will offset the change in the value of the new Loan security (i.e. the amount that the Borrower has to repay in the Loan-Stock Instrument (LSI)).
This means that if the underlying security price increases, the value of the new Loan-security will decrease in such a way that the sum of the two amounts will grow exponentially in time with the same rate as the fixed-rate Loan would. The opposite is also true: if the Stock price decreases then the value of the new Loan-security (i.e. the amount that the Borrower has to repay) will increase in such a way that the sum will again grow in exactly the same way as the traditional fixed-rate Loan would.
Therefore, in order to offer an Loan-Stock Instrument (LSI) at a profitable ROI, a strategy for the Lender to earn some additional return has to be specified. The Lender proceeds to hedge the risk as follows:
This Loan-Stock Instrument (LSI) must have the following properties in order to exist and be marketable:
Furthermore, the Loan-Stock Instrument (LSI) grows in time with the fixed-interest rate r. Therefore a new kind of Bond can be created that combines the LSI (i.e. Loan-like instrument) and Stock (or Stock-like instrument). This new Bond portfolio could be packaged and sold to interested third parties.
Although we are not tax/investment advisors or attorneys-at-law (and we are not giving you tax/investment or legal advice), we provide financial and liquidity solutions that can be profitably utilized per the advice of your investment advisors and attorneys. Many of our clients use our Loan Products and Customized Loan Solutions to hedge and/or profit in their tax planning, businesses, and investment strategies.
References: A. Morozovsky, R. Narasimhan, and Y. Kholodenko, "A New Loan-Stock Financial Instrument", 2000, pp. 1-9.There are several different variations of Stock Loan vehicles as financial instruments (a.k.a. Loan-Stock Instruments (LSI)) across the globe, but the underlying Loan model, process, and procedure is primarily the same:
As our Stock Loans are Non-Transfer-of-Title Loans, the Client/Borrower will continue to enjoy all benefits of ownership including all appreciation of value and receipt of dividend payments. For compliance as well as statements, the Custodian Account shows the total number of shares deposited.
A Non-Recourse Loan Product is perhaps the safest type of Loan for the Borrower, and yet entails a very large risk for the Lender.
Non-Recourse debt is a type of Loan secured by collateral, which is usually property (but in this case: stocks / equity / securities, i.e. a "Stock Loan" or a Loan-Stock Instrument (LSI)). If the Borrower defaults, the Lender can only seize the collateral but cannot seek out the Borrower for any further compensation as with a Recourse Loan from a bank, even if the collateral does not cover the full value of the defaulted amount.
With a Non-Recourse Loan, the Borrower does not have personal liability for the Loan. The only thing that matters to the Lender is the value of the stock/equity collateral that you provide. . Therefore a Non-Recourse Loan provides much safety and many benefits to the Borrower because a Non-Recourse Loan does not require any credit checks, income verification, or any other personal or business financials whatsoever.
A Non-Recourse Stock Loan does not entail any personal financial risk since it requires:
A Non-Transfer-of-Title Stock Loan is a Loan where the Title-of-Ownership for the Stock/Equity remains with the Borrower and does not transfer to the Lender. Therefore all asset appreciation and stock dividends profits are enjoyed by the Client/Borrower who will obtain instant liquidity without losing ownership - and privileges of ownership - of the underlying stock.
Yes. Under certain circumstances, the Borrower may prefer to do a Transfer-of-Title Loan.
For example, if the Borrower needs the money "yesterday" (i.e. URGENT), then we can also offer Transfer-of-Title Loans which are faster to process and finalize than with Non-Transfer-of-Title Loans.
Whereas for a Non-Transfer-of-Title Loan, it may take anywhere from 1-3 weeks (i.e. 5-15 business banking days) to finalize the Loan funding, for a Transfer-of-Title Loan, it is possible to receive the Loan funding in less than a week - of course, all depends upon how fast the Borrower can proceed with the necessary steps of the Loan Application and Funding Procedure to supply all necessary documents, signatures, approvals, and authorizations.
Of course, upon full repayment of the Transfer-of-Title Loan, the shares that were pledged as collateral for the Stock Loan are repatriated to the Borrower just as with a Non-Transfer-of-Title Loan (i.e. if this is the tax/investment strategy preferred vs. e.g. the Borrower intentionally defaults on the Loan as an investment exit-strategy).
Although we are not tax/investment advisors or attorneys-at-law (and we are not giving you tax/investment or legal advice), we provide financial and liquidity solutions that can be profitably utilized per the advice of your investment advisors and attorneys. Many of our clients use our Loan Products and Customized Loan Solutions to hedge and/or profit in their tax planning, businesses, and investment strategies.
Loan-to-Value (LTV) ratio is an assessment of lending risk that financial institutions and other lenders examine before approving a Loan. A typical Stock Loan that we can offer you is funded for between 40% - 70% of the underlying collateral's value, i.e. at an LTV ratio of about 40%-70% of the Borrower's Stock's Average Daily Trading Value. The average LTV ratio, or Loan funding amount, is in the range of approximately ~55% of the value of the collateral according to the Average Daily Trading Volume of minimum Liquidity threshold of $50k USD per day for at least 30 days.
Liquidity for a given Stock/Equity is determined by the following formula:
Liquidity = Daily Trade Volume x Price
In order for a Borrower's Stock to potentially qualify for one of our Stock Loans, a minimum Liquidity threshold of about $50k USD per day is required for the Average Daily Trading Volume of that Stock for at least 30 days.
However, to reiterate: It all depends upon the value of the underlying stock collateral.
Average Loan/Funding Amount: $2-10 Million USD, but also on both sides of this price range.
No. There are absolutely no Loan Application Fees whatsoever: There are no upfront fees, no application fees, no hidden fees, and no cancellation fees if the Client/Borrower decides to decline the Loan Terms and/or the subsequent Loan Agreement. The only fee that the Client/Borrower will pay is the low fixed-interest % on the Loan, and this will only be paid after receiving the Loan Proceeds.
There is absolutely no obligation, and the Client/Borrower can even cancel the Loan Agreement with absolutely no cancellation fees or obligation up to 24 hours (i.e. one (1) business day) before the Loan Proceeds are wired to Client/Borrower's bank account.
No. There is absolutely no obligation to the Client/Borrower. If the Client/Borrower does not agree to the proposed terms in the Loan Term Sheet - or to those in the subsequent Loan Agreement - then there is absolutely no obligation for the Client/Borrower. If the Client/Borrower decides to decline the Loan, then he/she can walk away at any time with no Loan Cancellation fees whatsoever. Even after signing the Loan Agreement, the Client/Borrower can cancel the Loan Agreement (with no Loan Cancellation fees and no obligation) up to 24 hours (i.e. one (1) business day) before the Loan Proceeds are wired to Client/Borrower's bank account.
As we are not tax/financial/investment advisors or attorneys-at-law, you will have to consult with your tax/financial/investment advisors and/or attorneys-at-law for tax, investment, and legal advice. Therefore, we can only tell you how some of our Clients use our Fixed-Interest Stock Loan vehicles (i.e. Loan-Stock Instruments (LSI)) to wisely and creatively manage, hedge, and leverage their financial positions and investments. Here are some benefits and advantages:
A stock Loan is a simple and effective transaction designed to provide the Borrower with liquidity while retaining access to potential asset appreciation. You reap 100% of all the rewards of any appreciation and dividends while being able to use Liquidity as an Investment Capital that is based upon the Value of the Stocks that you continue to own without relinquishing title-of-ownership!
Although we are not tax/investment advisors or attorneys-at-law (and we are not giving you tax/investment or legal advice), we provide financial and liquidity solutions that can be profitably utilized per the advice of your investment advisors and attorneys. Many of our clients use our Loan Products and Customized Loan Solutions to hedge and/or profit in their tax planning, businesses, and investment strategies.
If you are fortunate enough to know a Private Lender willing to lend you money, then nearly always a Private Lender is preferable to a Bank. For the Borrower, borrowing from a Bank is some of the riskiest type of borrowing as a Bank not only has Full-Recourse to collect all outstanding debt on the Loan, but a Bank can call out (or call in) a Loan (i.e. make a Loan Call on a Call Loan or a Callable Loan) at virtually any time for virtually any reason.
Banks like to lend money to people who don't need the money. So when you need Money and Liquidity, where are you going to find it? Who is going to lend to you Liquidity without Personal Guarantees (PG), credit checks, income verification, Loan Covenants, etc.?
Unlike Banks, we as Private Lenders offer you instant Liquidity with absolutely no Loan Covenants, no Personal Guarantees (PG), no Balloon Payments, no Fire Sales, no Call Provisions, and no calling in the notes whatsoever. In fact, since our Loans are Non-Recourse Loan Products, you can even walk away from the Loan the day after receiving the Loan Proceeds and never make a payment - with no financial penalties whatsoever.
Most Stock/Equity can qualify with three unique Stock-Loan programs:
Eligible securities include stocks, penny stocks, credit-worthy bonds, and Exchange Traded Funds (ETFs), as well as other marketable, FREE-TRADING securities. We lend against securities that are publically-traded on most domestic and foreign exchanges.
Yes. Actually, all of our Loans are customized to each Client/Borrower's specific situation. The Client/Borrower has a range of financing options from which to choose such as the desired Loan period, Non-Transfer-of-Title or Transfer-of-Title Loan, desired Loan Prepayment Lockout Period, option of funding by tranches, using the Stock Loan as an investment exit-strategy from those positions, etc.
However, under certain circumstances (and depending upon the situation for a Loan amount above ~$20 Million USD), if the Client/Borrower has additional custom requests that are not covered within the options of our standard Loan Terms, then (upon request) we will try do our best to customize certain aspects of the Loan (if necessary) for the Client/Borrower - if we can do it, e.g. funding in multiple tranches, extending the Loan payback period, making aspects of the Loan Sharia-compliant, etc.
Although we are not tax/investment advisors or attorneys-at-law (and we are not giving you tax/investment or legal advice), we provide financial and liquidity solutions that can be profitably utilized per the advice of your investment advisors and attorneys. Many of our clients use our Loan Products and Customized Loan Solutions to hedge and/or profit in their tax planning, businesses, and investment strategies.
This depends upon one's perspective, how one defines Sharia-compliant Islamic Finance, and what are one's goals and intentions in leveraging a Stock Loan (i.e. a Loan-Stock Instrument (LSI)) as an investment vehicle. Therefore, it is essential to understand the role of risk-sharing in raising capital.
The concept of risk-sharing is central to Islamic Banking and Finance while at the same time demanding the avoidance of riba (usury) and gharar (ambiguity or deception). In Islamic Jurisprudence (fiqh) and Sharia-Compliant Islamic Finance, instead of lending money to the Client/Borrower at a profit, the Lender buys the underlying product - e.g. the house, the car, the luxury item (or in our case: the stocks / equity / securities) - and then leases it or re-sells it on installment back to the Client/Borrower for a fixed price typically higher than the initial market value. The key notion here is risk-sharing: the Lender profits on the transaction as a reward for the risk the Lender takes with the customer.
A Stock Loan (i.e. a Loan-Stock Instrument (LSI) or Loan Stock) is beneficial for both the Borrower and the Lender. For the Borrower, the LSI is more attractive than the traditional Loan because of the decrease in the amount that has to be repaid (i.e. as the Stock value rises over time on average). An additional benefit of a Non-Recourse Loan is that the Borrower always has the option of walking away from repayment of the Loan without any penalties whatsoever.
Although we are not tax/investment advisors or attorneys-at-law (and we are not giving you tax/investment or legal advice), we provide financial and liquidity solutions that can be profitably utilized per the advice of your investment advisors and attorneys. Many of our clients use our Loan Products and Customized Loan Solutions to hedge and/or profit in their tax planning, businesses, and investment strategies.
It is important to understand that financial benefits with a Stock Loan (i.e. a Loan-Stock Instrument (LSI) or Loan Stock) for both the Borrower and the Lender come from an additional investment (i.e a hedge) in a securities market that is associated with a particular Loan and from the Lender's ability to construct the risk-free (i.e. hedged) portfolio by properly balancing the relative amounts of the Loan and the underlying security. The situation is quite similar to the situation that arises when a risk-free (i.e. hedged) portfolio (that consists of an Option and an underlying security) is created in Option Theory.
While being perhaps the safest type of Loan for the Borrower, Non-Recourse Loan Products entail a very large risk for the Lender. Therefore, in Islamic Investing, depending upon one's perspective and specific situation, needs, as well as goals, a Non-Recourse Stock Loan (i.e. a Securities-Based Loan (SBL)) can be considered as a Sharia-compliant Investment Vehicle, e.g. Lease (Ijarah), or Lease-to-Own.
If the Client/Borrower (who is owner of the securities) is looking for an investment exit-strategy, then our Loans serve as de facto Put Options, and therefore are most definitely Sharia-compliant investment vehicles - most especially if a Transfer-of-Title Loan option is chosen. (Please note: by default, our Stock Loans are Non-Transfer-of-Title Loan vehicles. If you would prefer a Transfer-of-Title Loan, please specify this when you contact us to inquire.)
Islamic law views lending with interest payments as a relationship that favors the Lender, who charges interest at the Borrower's expense. Islamic law considers money as a measuring tool for value and not an asset in itself. Therefore, it requires that one should not be able to receive income from money alone. Interest is deemed riba (usury), and such practice is proscribed under Islamic law.
In Sharia-compliant Islamic Finance, the equity financing of companies is permissible as long as those companies are not engaged in restricted businesses. Prohibited activities include producing alcohol, gambling, and making pornography.
Therefore, depending upon one's investment strategy, perspective, and goals, one can leverage Stock Loans (i.e. Loan-Stock Instruments (LSI)) as Sharia-compliant investment vehicles.
References: A. Morozovsky, R. Narasimhan, and Y. Kholodenko, "A New Loan-Stock Financial Instrument", 2000, pp. 1-9.Let's face it: Liquidity is king. We fund the Loans and provide the fast financing and quick liquidity solutions that you need - it's that simple.
We offer you instant Liquidity when you need it, without having to sell the shares of your Stock/Equity/Securities and without relinquishing Title-of-Ownership for those Securities.
We provide the liquidity that you need confidentially and privately. People come to us to be anonymous. Clients' confidentiality is of utmost importance to us. We never share any information of our Clients to any third party unless required to by law.
Unlike Banks, we as Private Lenders offer you instant Liquidity with absolutely no Loan Covenants, no Personal Guarantees (PG), no Balloon Payments, no Fire Sales, no Call Provisions, and no calling in the notes whatsoever. In fact, since our Loans are Non-Recourse Loan Products, you can even walk away from the Loan the day after receiving the Loan Proceeds and never make a payment - with no financial penalties whatsoever.
All of our Loans are Non-Recourse Loan Products which means that the Borrower is not personally liable, and has no business liability beyond the stocks pledged as collateral - therefore the Borrower is safer with a Non-Recourse Loan, and has more options and security than a Full Recourse Bank Loan or a Margin Loan. Our Non-Recourse Loan Vehicles require no credit checks and no financial statements whatsoever other than the Client/Borrower's Brokerage Account Statement to prove ownership of the securities.
All of our Loans are LOW FIXED-INTEREST %, and not tied to variable interest rates such as the London InterBank Offered Rate (LIBOR) - which is a benchmark interest rate at which major global banks lend to one another in the international interbank market for short-term loans - or Prime Rate which is the interest rate that commercial banks charge their most creditworthy corporate customers. This Prime Rate should not be confused with the Federal Funds Rate which refers to the interest rate that banks charge other banks for lending to them excess cash from their reserve balances on an overnight basis.
We are flexible where others (most especially Banks) are not so.
We treat our Client/Borrowers and Brokers with respect and laser-like focus on the end goal of funding your Loan to provide you the Liquidity that you need - we treat people right.
If you have a liquid, publicly-traded Stock (or other tradeable Security) on any major Stock Exchange worldwide, chances are we can help. We specialize in providing quick-funding, Securities-Based financing solutions specific to our Clients' needs. We offer the widest variety of Stock Loans and Securities-Based financing solutions in the industry... period.
Although we are not tax/investment advisors or attorneys-at-law (and we are not giving you tax/investment or legal advice), we provide financial and liquidity solutions that can be profitably utilized per the advice of your investment advisors and attorneys. Many of our clients use our Loan Products and Customized Loan Solutions to hedge and/or profit in their tax planning, businesses, and investment strategies.
We provide Low Fixed-Interest(!), Non-Recourse(!), Non-Transfer-of-Title(!) Securities-Based (Stock) Loans (SBL) // Loan-Stock Instruments (LSI) towards Publicly-Traded (Free Trading) Stock/Securities from over 80 exchanges that are pledged to a Mutually-Agreed, Neutral Custodian Brokerage Account which is opened in the name of Borrower with Title-of-Ownership always remaining in the name of the Borrower.
The list of exchanges with securities that qualify periodically changes, so please contact us to inquire if stocks from your specific exchange qualify.
Stocks/Equity/Securities from nearly all Major Worldwide Stock Exchanges are accepted including:
If you don't see the exchange listed where your securities are traded, yet believe that you have a viable transaction to be done, please contact us to inquire if securities from your specific exchange qualify.
ZZStockLoans.com welcomes Referral Partners, and we pay generously.
We actively encourage long-term (lifetime) relationships with our Referral Partners since we treat others as we would like to be treated, and thus we offer the best and most competitive terms.
Therefore ZZStockLoans.com pays 50% the Loan Origination Fees to those financial and/or legal advising partners who bring clients to the table and refer business to us, which therefore makes it possible for all to profit together as partners - truly share the wealth and good will towards fellow man (and woman)!
Refer Clients to us, and earn 50% of Loan Origination Fees.
P.O. Box 24127
Mount Scopus, Jerusalem, 91241
Israel
