Qilin’s Share Financing Programs Work For EB5 Investors
There are various foreign investor schemes around the world such as the UK’s Tier 1 foreign investor scheme or the US’s Immigrant Investor Program, also known as EB-5, which allow foreign nationals a residence VISA in return for a significant capital investment into that country. Raising the capital to invest in foreign schemes can be difficult, however, for individuals with a portfolio of listed stocks, Qilin World Capital can help. By taking a non-recourse stock loan or a limited recourse margin loan, investors can unlock the capital tied up in their investments without the need to sell any of their stocks.
Non-recourse loans or margin loans use stocks as security and can provide fast liquidity to shareholders willing to pledge their stock as collateral for capital. These loans still allow borrowers to take advantage of upside conditions at the end of the loan term or if the markets have fallen, they can simply walk away from the loan.
Qilin World Capital is a market leader and can provide this low-cost alternative finance solution for a diverse range of foreign investments. Because investment schemes vary from country to country the loan is flexible, fast, and can be tailored to an investor’s requirement. The loan-to-value (LTV) amount is calculated on the basis of the investor’s portfolio. If an investor holds large-cap, liquid stocks, the LTV can be high and the financing period as long as three to five years. The LTV can be between 50-70 percent, depending on the stock’s market value, liquidity, stability, and so on. The interest is approximately 5-8 percent per year. The method of loan remittance is to remit the loan directly to the customer’s bank account and all loans can be tailored to the needs of the investor.
This type of capital raise can help investors maximize their existing portfolio in a flexible way because they do not need to sell any stocks, they can maintain their portfolio and invest in foreign projects.
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
Qilin World Capital provides industry-leading terms with expertise and technical sophistication meaning that most loans are completed in 10 to 14 days. We strive to remain agile and adaptable to minor and major changes in foreign investing criteria, trends and processes.
The company is a family fund providing short-term loan finance with over one hundred years of experience in the financial lending industry and a loan book is in excess of one billion US dollars. Headquartered in Hong Kong, the scope of our business is widespread and includes operations throughout China, Canada, the UK, Hong Kong, Singapore, Malaysia, Japan, Korea, Vietnam, Thailand, Indonesia and Australia.