Home > securities based loan vs margin loan
Please note their are MAJOR differences in a "SECURITIES BASED LOAN" VS A STANDARD MARGIN LOAN provided by a securities firm.
For example:
OUR SOURCE LENDS UP TO 70-80% LOAN TO VALUE, NOT 50% LTV
OUR SOURCE HAS NO RECOURSE AND IS ALSO A MAJOR EQUITIES FIRM
OUR SOURCE HAS NO RECOURSE! NONE!!!!
OUR SOURCE LENDS ON PUBLICLY TRADED FIRMS GLOBALLY AND WE CAN LEND ON STOCKS WITH VOLUME THAT TRADE UNDER 10.00 A SHARE
OUR SOURCE WORKS WITH OUR CLIENTS AND THEIR COUNSEL. WHEN THEY ISSUE TERM SHEETS THEY ARE GLAD TO OFFER ACCESS TO COMPANY ATTORNEYS, DIRECTOR , CAPITAL ANALYISTS AND CPA FIRMS TO PROVIDE YOUR TEAM TRANSPARENCY, CORRECT TERMS AND ASSISTANCE IN THE TRANSFER OF ASSETS.
OUR SOURCE DOES NOT MAKE MONEY MANAGING YOUR CURRENT STOCK ACCOUNTS, SO WE ARE NEUTRAL AND UNBIASED.
OUR SOURCE IS THERE TO HELP OUR AFFILIATE STOCK BROKERS. WE LEND NON RECOURSE AND TO HIGHER LTVS A GREAT SERVICE!
NOTE: MANY FOLKS HAVE TAKEN MARGIN LOANS OUT AGAINST THEIR SECURITIES WITH THEIR BROKER DUE TO LOW LOAN COSTS AND BECAUSE OF THE RELATIONSHIP AND HAVE NOT BEEN PROPERLY INFORMED.
WE SUGGEST A QUICK CALL TO US TO HAVE YOUR LOAN REEVALUATED BECAUSE FREQUENTLY OUR CLIENTS HAVE FAR TOO MUCH COLLATERAL SECURED IN RELATION TO THE CASH THEY RECEIVED ON A MARGIN LOAN.
ALSO PLEASE READ THE DISCLOSURE BELOW FROM ONE OF THE TOP SECURITIES COMPANIES IN THE USA AND LOOK AT YOUR TERMS, ASAP. DO YOU KNOW THEY CAN CALL YOUR MARGIN ACCOUNT ANYTIME? DO YOU KNOW THEY DO NOT HAVE TO CONTACT YOU? DO YOU KNOW YOU ARE NOT ENTITLED TO PICK THE COLLATERAL THEY CHOOSE TO TAKE IF THERE IS A MARGIN CALL??
TO LEARN MORE CHECK YOU PAPERS OR CALL DAN CASSEL AT 800-893-3304 TO DISCUSS WHY A SECURITIES BASED LOAN AND NO RECOURSE LOAN BEATS A MARGIN LOAN MOST EVERY TIME.....
SEE THE DISCLOSURE BELOW!!!!!! iTS UGLY!!!
We are furnishing this document to you to provide some basic facts about purchasing securities on margin, and to alert you to the risks involved with trading securities in a margin account. Before trading stocks in a margin account, you should carefully review the margin agreement provided by us. Please contact us regarding any questions or concerns you may have with your margin accounts.
When you purchase securities, you may pay for the securities in full or you may borrow part of the purchase price from us. If you choose to borrow funds from us, you will open a margin account. The securities purchased are our collateral for the loan to you. If the securities in your account decline in value, so does the value of the collateral supporting your loan, and, as a result, we can take action, such as issue a margin call and/or sell securities in your account, in order to maintain the required equity in the account.
It is important that you fully understand the risks involved in trading securities on margin. These risks include the following:
- You can lose more funds than you deposit in the margin account. A decline in the value of securities that are purchased on margin may require you to provide additional funds to us to avoid the forced sale of those securities or other securities or assets in your account(s).
- We can force the sale of securities in your account. If the equity in your account falls below the maintenance margin requirements under the law, or our higher "house" requirements, we can sell the securities in your account to cover the margin deficiency. You also will be responsible for any shortfall in the account after such a sale.
- We can sell your securities or other assets without contacting you. Some investors mistakenly believe that a firm must contact them for a margin call to be valid, and that the firm cannot liquidate securities in their accounts to meet the call unless the firm has contacted them first. This is not the case. We will attempt to notify you of margin calls, but we are not required to do so. However, even if we have contacted you and provided a specific date by which you can meet a margin call, we can still take necessary steps to protect our financial interests, including immediately selling the securities without notice to you.
- You are not entitled to choose which securities or other assets in your
account(s) are liquidated or sold to meet a margin call. Because the securities are collateral for the margin loan, we have the right to decide which security to sell in order to protect our interests.
- We can increase our "house" maintenance margin requirements at any time and are not required to provide you with advance written notice. These changes in firm policy often take effect immediately and may result in the issuance of a maintenance margin call. Your failure to satisfy the call may cause us to liquidate or sell securities in your account(s).
- You are not entitled to an extension of time on a margin call. While an extension of time to meet margin requirements may be available to you under certain conditions, a customer does not have a right to the extension.
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