Non-Recourse Stock Loan
Stock loans or non-recourse loan financing is a secured, interest only lending facility provided by Qilin World Capital. These loans provide liquidity to shareholders, while also providing a hedge in volatile market conditions.
A non-recourse stock loan allows borrowers to take advantage of the age-old question of when to hold or when to sell their stock. By pledging securities as collateral for a loan with Qilin, a borrower is able to take advantage of upside conditions at the end of the loan term or if the markets have fallen, simply walk away from the loan.
Qilin provides industry-leading terms for non-recourse loans. LTV’s are available up to 70%, interest rates from 4%, fast funding times and flexible payment terms. Qilin’s expertise and technical sophistication mean that most loans are completed in 7 to 10 days. Qilin considers your confidentiality as a top priority.
How does a stock loan work?
- A Borrower signs a Qilin term sheet
- KYC documents executed
- Borrower and lender execute the agreement at an appointed law firm
- Custodian, borrower and lender execute agreement at an appointed law firm where appropriate
- Borrower opens an account at custodian
- Borrower receives the funding
What are the advantages of a stock loan from Qilin?
- Fast access to capital
- Maintain upside position
- Competitive LTV’s
- Low-interest rates
Who are some of the clients of a stock loan?
- Corporate officers and directors
- Private Equity Funds
- Institutional Investors
- Hedge Funds
- High Net Worth Individuals
Stock Loan Case Studies
Senior executives of public companies often hold concentrated positions of a security, yet require access to funds for business or personal needs. Qilin’s non-recourse stock loan is an excellent product which enables them to access their capital, while still maintaining exposure to the public companies stock upside.
A private Thai company holds 13% of a public company listed in Hong Kong and is in need of liquidity for expanding their real estate acquisitions. If the Thai company sells the shares, they will lose any potential upside from their public company holdings.
The CEO of the Thai company works with Qilin to set up a non-recourse stock loan. Qilin will lend up to 4.99% of the issued and outstanding stock of the Hong Kong Company at a very competitive Loan-to-value of up to 50% with an annual carry charge of 8%.
As many banks, securities firms and brokerages are moving away from a single share financing solutions, Qilin World Capital has stepped in to fill the void left by those institutions.
A London-based investor with a substantial AIM portfolio wants to take advantage of a unique investment opportunity but cannot liquidate his existing portfolio in time. The investor consults with Qilin about his liquidity needs. Qilin issues terms for 70% of the value of the trader’s entire portfolio. The investor proceeds with the stock loan and is able to move swiftly on the other investment opportunity.